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4. Entrepreneurship in Times of 
Financial Crisis 
4.1. EU Policies Regarding Entrepreneurship 
Europe has been faced with a crisis, which led to some 
countries in recession, rising unemployment, increased share 
of the population at risk of poverty and social exclusion. At 
the same time, the European Union is losing ground to 
competing countries such as the US, Japan, etc., in a number 
of areas such as innovation. Against this background, 
European Commission had to develop a strategy that would 
increase economic activity, but would no longer have the 
same resultants with those of the past. Thus, for example, it 
was realized that is not enough for member countries to meet 
the aims of the Stability and Growth Pact, but should be set a 
number of other targets, which would allow the long-term 
and sustainable development of the European Union. Given, 
however, that the Member States can no longer have the 
same fiscal policy by borrowing and by having deficits in 
order to stimulate their economies, these new axes should 

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Evangelia Fragouli and Nikolaos Giannakovitis: Entrepreneurship and Financial Crisis: A Critical Investigation of
Entrepreneurship Prospects and Opportunities That Lie Behind the Financial Crisis 
have the aspect of innovation and creativity. 
At the same time, it became clear that there should be one 
strategic plan to ensure that unemployment will decrease and 
there will be that safety net that will not allow the social 
exclusion of the most vulnerable population groups. Also, 
climate change is an important aspect of development. 
Therefore, the development should be done in a way that not 
only not incompatible, but enhances ecology. Based on these 
parameters, the strategy Europe 2020 program was designed. 
The Europe 2020 has set three priorities: 1) Smart growth 
understood as those based on knowledge and innovation, 2) 
Sustainable development, in which there are a less energy 
intensive 
and 
more 
ecological 
economy, 
and, 
3) 
Comprehensive development, where the economy will have 
high employment, through which to achieve social and 
territorial cohesion. These three priorities have been defined 
by the following objectives: 75% of the population aged 20-
64 should be employed, the 3% of EU GDP should be 
directed to research and development, the 20/20/20 
objectives, referring to climate and energy, will be attained 
along with a 30% increase of reducing gas emissions, given 
the current conditions, the proportion of the early school 
leavers should be under 10% and 40% of the younger 
generation should be higher education graduates, it should 
have achieved a reduction of poverty by 20 million people. 
The key to the achievement of Europe 2020 is the 
involvement of each country strategy, which will be 
monitored with special reports and recommendations are 
given in each country to facilitate the achievement of 
objectives. Also, in cases where a country member records 
reduced response, there will be notice. The assessments of 
each country are projected to relate to the performance of 
countries both in terms of the Stability and Growth Pact and 
in terms of Europe 2020, a single evaluation framework. 
Having set these priorities, the European Commission has 
focused on a series of initiatives that will be undertaken in 
order to have action. Thus, with respect to the priority of 
smart growth initiative arises as to facilitate the research 
funding, because in this way new ideas are converted into 
products. Also, the initiative for the "Digital Agenda for 
Europe", as it develops the access to high-speed internet, 
both households and businesses will have additional benefits, 
which would enable the promotion of knowledge and 
innovation. Also, as growth through knowledge and 
innovation passes through entrepreneurship, it has been the 
initiative to strengthen small and medium-sized enterprises. 
Of course, this initiative is a direct connection not only with 
the priority of smart growth and inclusive growth, and this is 
because, with the creation of new food companies, jobs are 
created. 
Thus, 
it 
appears 
that 
the 
priorities 
are 
complementary and interdependent. Regarding the priority of 
sustainable development by taking the initiative of efficient 
use of resources, which provides support for the transition of 
the member states of the European Union into a low carbon 
economy and to adopt a series of actions concerning 
transport, support for renewable energies and energy 
efficiency. On the third priority, the initiative provided for the 
development of new skills and jobs, through which, people 
outside the labor market will acquire new skills through 
lifelong learning programs. Thus, drastically limited their 
exclusion from the labor market, and then significantly 
restricted and their social exclusion. Moreover, the 
acquisition of new skills supported the goal of smart growth. 
Simultaneously with lifelong learning, it is important to the 
adaptation of the labor market with more mobility and 
flexibility. 
In 
the 
last 
15 
years 
entrepreneurship 
internationally recognized as a key factor for economic 
growth. The European Union considers small businesses the 
key source of business dynamism and innovation and looks 
forward in particular to them to play their role in making 
Europe the most competitive and dynamic economy. 
Entrepreneurship has many benefits for societies, the main 
wealth creation and reducing unemployment rates (Huggins 
& Williams, 2011). Given that local communities provide the 
conditions 
and 
resources 
to 
develop 
a 
business, 
entrepreneurship is directly linked to local economic 
development 
(Ribeiro-Soriano& 
Galindo-Martn, 
2012; 
Verdujin & Essers, 2013). Huggins & Williams (2011) point 
out that there must be a supportive climate to encourage 
entrepreneurship on the part of the regions, to attract 
investment and capable human resources, but also to hold 
existing businesses. For creating this climate and business 
promotion policies, very important is the State contribution. 
This is because both the institutional and regulatory 
framework on the part of state bodies may either favor or 
hinder entrepreneurship and other entrepreneurship can 
contribute 
to 
changing 
the 
institutional 
framework 
(Kalantaridis & Fletcher, 2012). These policies may involve 
the creation of new enterprises, especially in non-
advantageous areas, policies relating to funding issues and 
finding funds from existing operations, policies aimed at 
developing a more favorable regulatory environment for 
businesses by reducing corruption and tax deductions 
business and policies that encourage cooperation between 
regions (Huggins and Williams, 2011; Méntez-Picazo et al., 
2012; Smallbone & Welter, 2012). Finally, they should be 
mentioned and policies that encourage entrepreneurship by 
young people (Lamotte & Colovic, 2013), the various 
national minorities (Verdujin & Essers, 2013) and women 
(Verheul et al., 2006). 
The EU policy on entrepreneurship is defined by three 
main objectives: a) increase the number of people involved in 
business, b) creating a framework which contributes to the 
efficiency 
of 
entrepreneurship 
and 
strengthening 
development impacts, c) creating a social culture which 
promotes entrepreneurship.
In the Green Paper on Entrepreneurship, the European 
Union identifies ways in which to achieve each of these 
goals. These modes are: 1) enlargement of people involved in 
business, 2) To create a framework that will contribute to the 
efficiency of entrepreneurship and to enhance the 
development impact, 3) creating a social culture which 
promotes entrepreneurship. Additionally, in the "European 
Agenda for Entrepreneurship" in 2004 identified five 

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International Journal of Economic Behavior and Organization 2017; 5(2): 36-53 
42 
objectives of the European Union for entrepreneurship which 
are: a) cultivating an entrepreneurial culture, b) increasing 
the number of entrepreneurs, c) preparation of entrepreneurs 
for growth and competitiveness, d) improving the flow of 
finance and e) creating a more friendly regulatory and 
administrative framework for SMEs.