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Contemporary Entrepreneurial - Essay Example

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To report on macroeconomic analysis of current drivers impacting small and medium enterprises in Greece as requested by the Contemporary Entrepreneurial Studies course lecturing team through the coursework sheet of Monday 11th February 2013.
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Contemporary Entrepreneurial
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Contemporary Entrepreneurial

Download file to see previous pages... Information was also sourced from reliable online sources such as newspaper articles of major media houses such as CNN, and reports posted on websites of international financial and economic organizations such as the International Monetary Fund and the Organization for Economic Cooperation-operation and Development. These online reports were used because they obtain their information from official government sources and thus this information is valid. In addition, online articles of peer-reviewed economic and business journals were used because in some, cases hard copies were not available.
The Greek small and medium enterprise (SME) sector plays a very crucial role in the country’s economic development. The SME sector employs the majority of Greece’s labor force and accounts for two thirds of the non-primary sector sales volume. The SME sector has particularly been important in the wake of the debt and economic crises that have been facing Greece for a couple of years now. As numerous companies went bankrupt and retrenched thousands of workers, the SME sector proved to be a valuable source of employment as it absorbed many of the employees who lost their jobs (Markatou, 2012, 56 – 65). Although many SMEs also went bankrupt because of the crisis, majority of them survived, and many start-ups are still coming up as a result of entrepreneurship driven by innovation. The general decrease in demand for goods due to falling income levels led to fierce competition among SMEs forcing businesses to initiate value-driven innovations in a bid to obtain an edge over competitors. Through the PESTLE analysis, this report evaluated the competitiveness of Greek SMEs by analyzing the factors that affect the ability of businesses to become or remain competitive. Factors that this report analyzes are the PESTLE factors which include political, economic, social, technological, legal, and environmental factors.
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