Received: September 12, 2016; Accepted: February 28, 2017; Published: March 15, 2017
Abstract: The aim of this study is to identify the factors which affect the decision of setting up new business in Greece, as
well as identifying parameters associated with entrepreneurship in the period of the economic crisis. In this study, through a
critical review of the literature and primary research, an analysis of a set of variables regarding enterpreneurship takes place,
such as the sources of business financing, the institutional environment, as reflected in the role of clusters and business
education, as well as the incentives entrepreneurs have in order to set up a business in the current conditions. The study shows
that entrepreneurship is not a fixed condition, but a dynamic process, it is the most important source of potential growth, given
that public expenditure have been cut significantly, and private consumption has shrunk.
Keywords: entrepreneurship, financing, entrepreneurship motivation
1. Introduction 1.1. Background and Rationale of the Study The economic crisis in Greece is a fact since 2008. Greece,
from 2008 up to the current time, has a recession in which
the country's GDP has fallen by about 25%. At the same
time, unemployment has risen sharply, especially at younger
ages, where the unemployment rate is 51%, while more than
50% is recorded in the long term unemployment. A sector of
the economy that has significantly affected is that of
entrepreneurship and its determinants. The purpose of this
study is to explore the extent to which the economic crisis
has affected entrepreneurship in Greece, applying literature
review and primary research.
In order a country to achieve economic growth, the
activation of private investment is required, to strengthen
existing businesses, but mainly with the establishment of new
companies. Although the importance of the activation of
entrepreneurs has been highlighted, both in Greece and the
EU, there are a number of factors that act as obstacles for
investors to set new businesses. These factors have to be
identified and examined, in order the government and
institutions (such as banks, institutional investors and
universities) to take measures, in order to help
entrepreneurship. Also, there is a need to analyze the motives
of entrepreneurship in the current environment: are
entrepreneurs in Greece motivated by need, since they have
not any alternative to have income and employment, or they
are motivated by the business opportunities they have
identified? Do they believe that the current crisis is a threat
or an opportunity?
