Greece’s Business Landscape Dominated by Small, Often Unstaffed, Enterprises

Athens, Greece – The vast majority of businesses operating in Greece are sole proprietorships, with a significant portion functioning without employees, according to data released today by the Hellenic Statistical Authority (ELSTAT).

ELSTAT reported 932,549 active businesses across industry, construction, trade, and services in 2023, a rise from 917,441 in 2022. Of these, 697,484 – approximately 75% – are sole proprietorships, and 574,264, or 61% of the total, operate without any employees. Wholesale and retail trade represent the largest sector, accounting for 23.9% of all active enterprises, followed by professional, scientific, and technical activities at 17.3%, and accommodation and food service activities at 11.6%.

Manufacturing comprises only 6.15% of the total, and even within this sector, most enterprises are small-scale crafts, with nearly half employing no staff and a further 19,424 employing between one and four people. This reliance on small businesses, particularly in sectors like tourism and food service, raises concerns about economic resilience, as these industries are vulnerable to external shocks. This structure contributes to Greece’s ongoing challenges in achieving competitiveness with other European nations, as highlighted in recent reports from the European Commission.

The prevalence of small, often unstaffed, businesses and a concentration in lower-knowledge-intensive sectors may explain Greece’s comparatively low labor productivity and reliance on private consumption for GDP growth, a trend discussed in recent analyses of the Bank of Greece. Officials indicated further analysis will be conducted to determine strategies for fostering growth and improving the competitiveness of Greek businesses.