This a piece I wrote for the Economist, which was attached to my application for a position I applied to. Needless to say I didnt get the job but I do like this little effort, so I decided to re-post it here.
“Greek Entrepreneurship – Stagnation or Apathy?”
Ever since the financial crisis hit Greece at full capacity the country has witnessed a massive brain drain, probably bigger than the one suffered during the post-war Greek diaspora if we are to consider both numbers and the education of the citizens abandoning the country for better opportunities elsewhere.
This phenomenon is part of the vicious cycle of the lack of entrepreneurship and of opportunity, of new markets, in the Greek area. This lack is to blame for the brain drain, because of the few jobs available, and in turn the lack of human resources only cements the problematic conditions. But unfortunately for Greeks the situation is far more complex.
The lack of new markets, new businesses, and slim evidence of entrepreneurship in general, make it very hard for one to start a business in Greece. Confusing and often contradictory legislation, confounding red-tape, and the creation and sustaining of an unfriendly environment to businesses, especially due to the government’s actions through their mixed messages to the private sector, all pile up to make things even tougher for people, condemning consumers and producers alike. The Greek Left has decided that the issue of helping entrepreneurship, of creating a new market, of re-focusing the country as an economic entity, which is something we’ve seen happen several times in countries facing dire economic situations, is secondary to the issue of safeguarding the public sector. At the same time most Greeks will point out to the public sector, it’s corruption and it’s inefficiency as responsible for a big chunk of the blame for the situation in Greece. A sentiment that is in no way unrealistic, considering that for a new business to be created it has to go through the process of dealing with the necessary public services.
Trying to assist things as much as possible is a group of private investors that wish to help out by promoting entrepreneurship in Greece, fighting to keep the youth from leaving and offer them the means to start up their companies. Athens recently has had a considerable number of such initiatives take place and the response by the unemployed youth has been enthusiastic. But is it enough? After all, how can they thrive in such an environment?
Some political parties try to push for progress in the form of parliamentary debates but they rarely walk the talk since nobody wants to face the problems head on. So far the ‘easy’ (read least provocative) way out has been taken time and again. Taxes are still on the rise and liquidity is drained out. Again the private sector shoulders the weight. The parties that tried to push for market stability and further alterations on tax legislation, arguing that at least this way people can manage their finances, were edged out by the government and ignored by the media. The parties that did manage to enter parliament continue the Greek tradition of being pro-socialist in a very weird sense, and only provide words of feeble encouragement to the private sector. Some of those parties believe that the problem lies with the lack of foreign investment, but only claim so whilst being at the same time in complete ignorance of the conditions they’ve helped create that makes dealing with Greece and Greek businesses a toxic hazard investors are more than happy to keep away from.
If the government insists on waiting for some all-solving magic wand and doesn’t face up to what is eating away at the foundations of the country’s economy, they will keep on digging themselves in a deeper and deeper hole.