Hair salons, dry cleaners, funeral parlors, electronic repair shops and gyms. These are the businesses that flourish in crisis-stricken Greece, the Hellenic Federation of Enterprises (SEV) said in its bulletin issued this week. But such businesses do not bring growth, SEV underlines.
Such businesses will not bring growth, as the only services known to have a high investment boom are “repairs of electronics or household appliances,” “personal service activities” (dry-cleaners, hair salons, gyms, beauty parlors, etc) and “events planning”, the report notes.
All these investments, the report says, are linked to the effects of the crisis and recession in various forms, such as businesses starting out of the owner’s need to have employment and a source of income, repairs instead of purchases, infrastructure maintenance, personal improvement. All these business activities do not contribute to the end of recession and they don’t produce wealth.
However, the fact that investment in these sectors (1.3 billion euros) is almost the same as investment in oil-free manufacturing (1.2 billion euros), shows that Greece’s tentative growth pattern is directed towards low-value activities.
The report authors express the concern that only 17% of investments (excluding real estate purchase) in Greece are spent on research and development and intellectual property use, when in Europe such investments amount to about 30%.
PS I was thinking, in times of crisis Greeks were investing in cafeterias, souvlaki grills and lottery shops… At least this type of business is flourishing in our suburb.