The expectations and “open fronts” of the business – 2024-03-02 06:22:21

In a world that often loses its compass, Greece currently appears as an island of stability, with its economy on an improving trajectory and businesses appearing, according to the annual survey “The Pulse of Business” by the BSE, modestly optimistic, while for the first time since 2017, the positive assessments of businesses on the country’s economic situation exceed the negative ones.

Businesses realize the need for self-improvement and recognize that they must adapt faster to technological changes and sustainable development to enhance their competitiveness and sustainability. They are more confident in their capabilities and realize that they must rely on their own strengths, invest in the human factor and demonstrate adaptability. However, they encounter a state that is improving, but must move more efficiently, especially in the fight against bureaucracy.

Competitiveness

Labor taxation is a major obstacle to improving earnings, which is a critical parameter for attracting and retaining human resources, but also for improving the working environment. Artificial Intelligence is transforming work and production, but few companies are investing or intend to invest immediately. Sustainable development issues will play an important role in the future, but they are not understood. There is a significant lack of information, as 1/3 of businesses do not attach any importance to them. However, businesses are realizing that training and investing in sustainability practices enhances their competitiveness.

Medium-sized enterprises now have the most growth challenges, as they are the critical backbone of the economy. They have a more positive view of their progress but consider improvements in the business environment extremely necessary, such as the functioning of the administration and institutions as well as the upgrading of public infrastructure. Although progress is recognized in the business environment (e.g. digitization of interfaces between the state and businesses, the services of DYPA, the operation of AADE, etc.), the need to speed up sections, complete reforms in practice and abolish the many distortions in the functioning of the economy. For businesses, the most needed improvements are in reducing energy costs, protecting against natural disasters, a stable tax framework, speeding up the administration of justice and investment incentives.

the findings

The key findings are summarized as follows:

1. Economy and businesses are on a path of improvement (28% of businesses consider that the economic situation of the country is good and 53% consider that their financial situation today is good).

2. Businesses consider that improvements in the business environment remain necessary (in the improvements the country needs: 67% of businesses want more transparency and combating corruption, 67% greater tax competitiveness, 54% modern operation of public administration, 52% tax competitiveness for work and 52% effective functioning of institutions. Among the necessary improvements for businesses, 64% put the stable tax framework, 54% competitive energy costs, 44% faster administration of justice, 42% limiting polynomialism and 40 % financial instruments and investment incentives).

3. Businesses realize the need for self-improvement (59.9% the training and specialization of human resources, 41.3% the digitization of operations and processes, 35.8% the development of new markets and 30% the creation of new products and R&D services).

4. Businesses recognize that their competitiveness is enhanced by investing in the human factor (84% recognize labor taxation as the biggest obstacle to improving employee benefits).

5.Artificial intelligence (AI) will transform work and production, but few companies invest or intend to do so (80% of companies believe that AI will upgrade human resources, 20% of companies will invest in the immediate future and only 12% are already investing in IT).

6. Sustainable development will have an important role, but remains a complex undertaking. There is a significant lack of information and strategy. (52% of businesses are not informed and 40% state that they do not intend to include sustainability actions in their strategy.)

7. The cost of energy emerges as the most necessary improvement, followed by the need for a stable tax framework. The modern operation of the public administration, the fight against corruption and the tax competitiveness of businesses and labor are also high.

A leap forward will benefit us all

There is a need to speed up the changes both in business and in public administration, said among others the president of SEV, Mr. Dimitris Papalexopoulos. Businesses clearly perceive the need for self-improvement, while at the same time highlighting the need for further improvements in the business environment. Especially in the fight against tax evasion, in the taxation of executives, in the reduction of bureaucracy, in the speed of administration of justice, in the cost of energy, but also in the development of skills. We are at a juncture where a leap forward is possible, and it will benefit us all. It is in our hands, but it requires determination, persistence and cooperation. The prospects of the Greek economy for the next 3-4 years are good and clearly better than the European average, but in order not to lose the window of opportunity, the reforms need to be accelerated, so that the new production model supports the sustainable growth of the economy and of Greek business.