60,000 Small Businesses to Close



According to the interview of the president of the Athens Chamber of Handicraftsαρχείο λήψης, Pavlos Ravanis, to the Austria Press Agency (APA) on April 25, 60,000 more small businesses in Greece are going to close in 2013. Ravanis added that this will result in 120,000 people losing their jobs.

Although the business death rate has declined, businesses continue to close. In 2011, for every new business to be opened, 2.5 closed. In 2012 the ratio was further decreased and for every new business to open, there were two to close. This year, according to Ravanis’ estimates, for every new business 1.5 will close.

Ravanis also estimates that in 2013 unemployment in Greece will reach a new record of 30 percent, compared to 26 percent today, the highest in the Eurozone area.

It is probable that during the summer because of the tourist activity, unemployment will be relatively low, but from September on it will reach an inconceivable high percentage. To combat unemployment, he suggests reduction of taxes imposed as well as the elimination of bureaucratic obstacles, in order to achieve taxation on businesses similar to that in neighboring countries.

According to Ravanis, small businesses need both the support of the state and a tax relief so that the tax rate does not exceed 15 percent.


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