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How Does Greece Fare As a Prospective Startup Hub?
The recession-hit Greece is on the path to recovery. The nation has realized the importance of technological innovation which is evident in the constantly evolving startup ecosystem.
FREMONT, CA: The regional startup arena is evolving in Greece, relying on a young workforce that is ambitious and talented. Many of these able candidates have found themselves a misfit in the traditional ways of employment in Greece. The interest and determination to explore new ways are what paved the way for the positive changes taking place in the startup scene in the nation.
The year 2018 has been instrumental in boosting the overall development of the startup arena. What was significant about last year was the abundance of funding programs, which were launched and backed up by the government. Significant contributors were the European Investment Fund and the European Investment Bank. Their attempts are expected to continue and are likely to provide backup for over 200 early-stage firms within say, about five to seven years.
However, the Greek startup scenario hardly held the desired probabilities a few years ago. Conventionally, the Greek technological arena has been considerably risk-averse. However, the next-gen job seekers are excited by the idea of exploring new ways of technology and business.
The Greek recession, which had lasted for more than a decade, has had an adverse effect on the country’s economy. Almost ten years of heavy recession has resulted in fear and feelings of insecurity, besides anxiety. According to Endeavor Greece, an associate of the worldwide entrepreneurship firm, almost all sectors of businesses have vanished, by taking about a million jobs with them. Also, those were the years of financial mismanagement, besides a culture predominated by clientelistic politics, wherein the exchange of services and goods to gain political support paved the way for a long-term recession.
Consequently, several capable individuals, post-study, preferred migrating to other countries for better employment options. The lack of employment was a significant contributor towards this trend. However, this trend is changing, and a stint abroad has given Greek professionals a rare opportunity to learn. The knowledge is brought back to Greece and is aiding the startup scene in the region.
The excitement is mounting in the startup sector. However, several industry observers are apprehensive about the impact of the startups on the overall economy. It is still to be noticed whether it would impact the traditional employment market.
Also, the lack of specific startup policies can be a concern for young entrepreneurs in Greece. In several other places, such as Europe, such policies have been instrumental in boosting the startup economy.
The positive side of the recession was the changes in the mentality of young people who were interested in considering new models. The present focus is on striving towards making Greece an export-oriented, globally-focused economy underlined by technology.
The young Greek, who is professionally qualified, are aware that innovation is the path towards success. They are all set to take the country on a new path towards technology entrepreneurship. Entrepreneurship has been identified as a key driver for innovation, efficiency, competitiveness, economic development, and value-based approach.
The young crowd in the nation is enthusiastic, and it is beyond any doubt that the entrepreneurial system in Greece has advanced to be highly robust within the last few years. A report on investment and entrepreneurship opportunities by Endeavour, about 10 percent of the innovative ventures continue to focus on most potential areas. These include information technology, energy, and tourism. In the recent past, this was around 7 percent. In other words, the current Greek startup ecosystem is focusing on taking Greece way beyond the impact of the recession. As a result, the nation is attentive towards those areas where the government holds some strategic advantage.
More funding has become an urgent necessity and is expected in the imminent future. In fact, the scope for seed funding is enhancing, but firms still are without a much required collaborative culture.
Until this day, the funding scenario has improved. The establishment of EquiFund has been a significant development, which is backed by about €300m from the Greek government and the European Investment Fund. It is among the most prominent venture capital projects by EIF within a single European Union member state.