Tech entrepreneurship proves to be the answer for Greece’s economy

By IVC Staff Reporter

Nov 02, 2013 03:22 AM EDT

According to a Reuters column article, Greece suffered an unemployment rate of 27.9%, of which 58.8% of the unemployed are the youth. Currently, Greece is under crisis with its gross domestic product (GDP) shrinking 4.6%.Despite the pension and wage cuts, and tax hikes, the country had failed to pay it humongous debt. Recession In Greece, the article said, had deepened and household income lowered.

Organizational challenges reportedly posed a difficulty for Greece to be open to entrepreneurs. In the World Bank's Ease of Doing Business, Greece currently ranked at number 78 out of 185 countries. In terms of venture capital investment percentage in GDP, Greek had zero as compared to United States' 17% and Britain's 4%.

Managing director Haris Makryniotis of Endeavor Greece, a non-profit organization aimed at supporting entrepreneurs across the world, said, "If an 18-year-old could not get into university, his parents would open a souvlaki shop for him. Businesses were small-scale, unproductive and driven by owners who had no other choice. This is how we entered the crisis in 2008."

In spite of Greece trudging through the sixth year of decline, Athens' think tank, Foundation for Economic & Industrial Research (IOBE), claimed the state was headed towards economic solidity. According to Reuters, an increase in entrepreneurship would certainly aid in Greece's recovery. To date, Athens had grown in the technology scene with favorable startups such as Taxibeat. Taxibeat is a mobile app that allows users to call for a trusted taxi service. The smartphone application had managed to raise USD2 million of venture capital.

"If you are 18 years old and you have a good idea in technology, it's easier today than it was five years ago to start it. The Silicon Valley dream is powerful here," Endeavor's Makryniotis said.

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