Tuesday
May 8
2018

Why social enterprise in Greece is a modern day myth

By Ioannis Nasioulas

Over 2,000 social enterprises have sprung all over Greece since the crisis hit hard back in 2010, according to the Ministry of Employment Registry.

Greece lost roughly 30% of its national GDP; a sign of ultimate duress when compared to Syria which has seen its economy shrink by 25% amidst a devastating civil war.

Yet, it’s now more than evident that this peculiar social business sector is nothing but words, with no social impact created or employment generated in a setting that is desperate for social innovation that delivers.

People have begun starting up social enterprises for the wrong reasons: because they are a cheap substitute for a regular enterprise with more elastic social insurance obligations, since their members are not liable as is the case for all other entrepreneurs.

There is also a better chance of subsidies and preferential treatment from the local public sector, since they enjoy many advantages provided by law when it comes to utilizing public facilities for commercial use.

Photo courtesy of Martin Fisch.

Source: Thomson Reuters Foundation News (link opens in a new window)

Tags
Europe, Greece, social business, social enterprise, social entrepreneurship, social impact