Trade with Greece
50
It is worth noting that 6 out of 10 general-limited
partnerships and sole proprietorships reported that
they are not eligible for bank financing, while
almost 3 in 10 corporations and LLCs, and more
than 4 in 10 GPs-LPs and SPs considered it pos-
sible, or very possible, to be unable to meet their
current obligations. It should, also, be noted that 1
in 10 corporations and LLCs and 2 in 10 GPs-LPs
and SPs believed that a shutdown during 2014
was possible or very possible. For the year 2015,
four out of ten corporations and LLCs have pre-
dicted increased liquidity, while uncertainty and
pessimism continued to plague GPs-LPs and SPs,
as 6 out of 10 predicted a further deterioration of
liquidity.
In regard to sales and profits, in 2013 commercial
corporations and LLCs returned to profitability,
with pre-tax profits of €1 billion, following three-
years of accumulated losses.
However, this is partly deceiving, since the largest
part of total profitability is generated by only a few
companies. In contrast, 8 out of 10 GPs-LPs and
SPs reported a reduction in both their sales, and
their profits. For the year 2014, 8 out of 10 corpo-
rations and LLCs estimated that their sales and
profits would not be reduced, while more than 6
out of 10 GPs-LPs and SPs claimed that the end-
year results would include the further reduction of
both sales and profitability. For 2015, more than 7
out of 10 corporations and LLCs have estimated
that their sales and profits will not be reduced,
pointing, instead, to stability or an increase, while
almost 4 out of 10 GPs-LPs and SPs have once
again predicted a drop in both sales and profits.
In 2014, commerce accounted for 17.5% of total
employment and 20.4% of non-agricultural
employment, indicating that employment fell for a
sixth consecutive year, since it was reduced by
almost 31,700, i.e. by 4.8% year-on-year. For a
third year in a row, employment in trade fell below
700,000, to 1995 levels.
Compared to 2008, commerce has registered a
loss of 208,000 net job positions (or 25%).
Commerce accounts for 31.6% of the total num-
ber of employers, and 30.5% of the total number
of the self-employed and 40.3% of assisting fam-
ily members, while accounting for only 16.3% of
salaried employees.
Part-time employment as a percentage of total
employment in commerce rose to 8.4% in 2014
from 4.5% in 2008. In contrast, temporary
employment fell to 7.1% (11.6% of the total num-
ber of non-agricultural salaried employees).
Reform is necessary
Three very important interventions-reforms that
would breathe new life into SMEs and offer them
new prospects are the following:
● A simple, stable and competitive tax system.
Featuring a 15% tax rate on the entire taxable
income of legal entities, the upgrading of the
Tax Procedure Code in regard to fines and
audits, a gradual reduction of VAT rates, the
exemption from VAT for small enterprises with
annual gross incomes of up to €25,000, and a
radical overhaul of property taxation.
”
“
In Greece, in particular, this is the sector that has
suffered the greatest pressure and has borne the
brunt of the cost imposed by the crisis.
