Page 37 - COMPASS - COMPETITIVENESS REPORT 2021 | COUNCIL OF COMPETITIVENESS IN GREECE

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BUSINESS ENVIRONMENT

RECENT DEVELOPMENTS
• Funding innovative enterprises via grants, lending with favourable conditions, etc. promoted, and progress made towards
more private venture capital contributions to SME financing
• Incentives for digital upgrades to businesses – such as e-commerce development grants
• Time required to start a business reduced through VAT allocation via video call (myAADElive)
• Expected to launch operations in 2021, the new licensing system will complete the entire business launch procedure digitally,
on gov.gr
• Time required to dissolve a business reduced by the out-of-court mechanism, as well as the new bankruptcy law that
enables faster liquidation of company assets
• Solidarity levy rate reduced
• Tax motives for angel investors introduced

KEY TAKEAWAYS
Greece ranks low in vital issues that fall under the Business Environment pillar and can be understood both as catalysts for and
consequences of competitiveness. As regards the employment market, there are significant opportunities for improvement
to labour taxes via reducing the high costs for employers, and via creating more flexible labour relations. In the competitive
environment, we discern opportunities for improvement through the creation of frameworks to enable the transition to the
digital economy by creating incentives and addressing inequalities. In corporate financing, we observe a marked lack of funding
opportunities beyond traditional bank products. It should also be noted that Greek companies lag behind in both the adoption
of e-commerce – which can also boost exports – and the use of IT.
On the other hand, Greece performs well in corporate governance, especially as regards minority investors. Certainly, there
is significant room for improvement in this area as regards the adoption of and compliance with accounting and auditing
standards. Lastly, we observe a comparatively good performance in the ease of starting and dissolving a company, as Greece
has competitive advantages in terms of basic operating costs and business launch procedures, as well as a comparatively good
regulatory framework for business bankruptcy.