Financing SMEs and Entrepreneurs 2026: Greece
Table of contents
In 2023 and 2024, the Greek economy maintained its positive momentum, solidifying the recovery that began in the aftermath of the COVID-19 pandemic. Real GDP increased by 2.3% in 2024, supported by private consumption, investment co-financed through the Recovery and Resilience Facility (RRF), and strong performance in exports and tourism. This macroeconomic context contributed to favourable conditions for business activity across various sectors, reinforcing investor confidence and market dynamism.
This economic upturn coincided with renewed business lending activity. In 2024, total new business lending reached EUR 23.97 billion, the highest since the pandemic. SME lending rose to EUR 5.94 billion, up 25.15% from 2023. However, this increase was lower than that for larger firms, resulting in an SME share of 24.8% in total new loans, higher than in 2022 (20.5%) but still below 2021 (28.4%). This reflects the uneven pace of credit recovery among different enterprise sizes, with small businesses still facing notable hurdles in accessing finance.
Despite higher loan flows, total outstanding business credit remained below pre-pandemic levels. At the end of 2024, it stood at EUR 74.3 billion. This reflects banks’ cautious lending practices and still-modest demand from smaller firms. Lending institutions remained prudent, assessing credit risk more conservatively and prioritising clients with stronger balance sheets or stable cash flow histories. Microenterprises, in particular, often refrained from borrowing due to high interest costs and uncertain business conditions.
Non-performing loans (NPLs) for SMEs dropped to 3.98% in 2024, from 7.65% in 2023 and over 40% since 2015, signifying an improvement in the quality of SME loans. The “Hercules” asset protection schemes played a key role in this clean-up. These initiatives allowed banks to securitise and offload problematic exposures, thus freeing up capital and improving financial system resilience. Overall, business NPLs also declined, supporting the stability of the banking sector and enabling more targeted lending.
Meanwhile, interest rates remained high and well above historical norms. The average rate for SME loans fell slightly to 5.7% in 2024, from 5.96% in 2023, while large firms borrowed at 5.44%. The spread between the two remained below 1 percentage point for a second year, but financing costs were still well above historical norms. Tight monetary policy from the European Central Bank, in response to inflationary pressures, contributed to persistently elevated borrowing costs. These conditions continued to restrict the affordability of credit, particularly for firms in sectors with lower profit margins.
According to the ECB SAFE survey, SME access to finance improved modestly. Only 9.86% of SMEs were asked to provide collateral in 2024, down from 22.56% in 2023. The loan rejection rate fell to 15.79%, from 19.24% the previous year. Still, challenges persisted, especially for micro and young firms, due to procedural complexity and limited negotiation power. Some SMEs reported difficulty navigating the application process, while others lacked the documentation or financial statements typically required by lenders.
Public support continued to play a vital role. Government guarantees for SME loans reached EUR 4.16 billion in 2024, focusing on small enterprises and investments in digitalisation and green transition. These guarantees, often co-financed by the RRF, reduced credit risk and improved access. Concurrently, programs administered by the Hellenic Development Bank targeted key priority areas such as energy efficiency, digital upgrades, and regional entrepreneurship. The evolution from emergency COVID-19 support to more structured investment incentives marked a shift in national SME finance policy.
Alternative finance sources gained limited but notable ground. Venture capital investment rose to EUR 555 million (+21.98% from 2023). Factoring volumes reached EUR 3.716 billion, up from EUR 3.225 billion, while leasing and hire purchase activity hit EUR 2.744 billion. However, non-bank finance remains underdeveloped in Greece compared to EU averages. The market for equity-based and hybrid instruments is relatively small, and awareness among SMEs of available alternatives remains low. Encouraging broader diversification of funding sources remains a long-term policy goal.
In the post-pandemic period, Greek authorities continued to support SMEs through a combination of national tools and EU-backed financial instruments. The RRF played a key role in boosting liquidity and offering guarantees to SMEs, particularly in areas such as green transition, digitalisation, and innovation. Through partnerships with the Hellenic Development Bank and the European Investment Fund (EIF), public guarantee schemes were reinforced and adapted to the needs of micro and small enterprises. Regulatory reforms were also introduced to simplify credit access and reduce administrative burdens, though SMEs continue to face barriers such as high collateral requirements and increased borrowing costs.
The financial crisis and the ensuing sovereign debt crisis had a profound impact on the Greek economy, from which it has not fully recovered yet. Real GDP contracted by 26% between 2008 and 2015. In 2018 GDP expanded by 1.9%, the fastest GDP growth rate since the onset of the crisis and grew for three consecutive years. During 2020 and 2021, economic activity declined significantly due to the pandemic and measures to reduce it. Real GDP shrank by 9% in 2020, mainly due to declining service exports and private consumption. According to Eurostat data, in 2022 real GDP increased by 5.7% after a rebound of 8.7% in 2021. The dynamic recovery was a result of higher domestic demand both in consumption and investment activity, the recovery of the tourism sector, and the National Recovery and Resilience Plan. In 2023, the Greek economy expanded by 2.0%, outperforming the euro area average. In 2024, real GDP grew by 2.3%, according to the latest data from Eurostat. Growth was primarily supported by private consumption, tourism, and investment co-financed through the Recovery and Resilience Facility (RRF). However, several downside risks persisted, including the broader economic slowdown in the euro area, the European Central Bank’s tight monetary policy stance, geopolitical tensions such as the war in Ukraine, and the impact of elevated energy prices on household purchasing power. Despite these headwinds, the Greek economy continued on a positive trajectory for a second consecutive year.
In 2024, 818,747 enterprises are defined as SMEs, comprising 99.9% of all Greek enterprises, according to estimates from the European Commission. 94.5% of Greek businesses (774,137) are micro-enterprises employing less than 10 employees, 4.9% (40,158) are small enterprises, 0.5% (4,452) are medium-sized enterprises, and 0.1% (570) are large enterprises. Accordingly, 46.8% of the workforce is employed by micro-enterprises, while 84.7% of the workforce is employed by SMEs. Micro-enterprises and SMEs account for 24.8% and 62.8% of the value added in the economy, respectively. Compared to the EU‑27 average, SMEs and especially micro-enterprises are more numerous and more important in terms of employment for the Greek economy (see Table 2)1.
Source: European Commission’s SBA Fact Sheet 2025.
SME lending in Greece continued to grow steadily during 2023 and 2024, marking a gradual consolidation of the post-pandemic credit recovery. Notwithstanding the deployment of targeted support mechanisms by the Hellenic Development Bank, access to finance, particularly for micro-enterprises, remained markedly constrained due to elevated collateral requirements and persistently high loan rejection rates.
Business lending conditions in Greece improved during 2023 and 2024, reflecting stronger credit provision to firms and SMEs. According to the Bank of Greece, developments in new bank loans to NFCs in 2023 mainly reflect a slowdown in credit to large firms. The average monthly gross flow of loans (with a fixed maturity) to large firms declined to EUR 1 billion in 2023, corresponding to two-thirds of the 2022 flow (EUR 1.5 billion). By contrast, the respective flow to SMEs (EUR 396 million) increased slightly year-on-year, by 4.6%. According to Bank of Greece data, the share of new SME lending in total new business lending declined from 34.2% in 2008 to 24.8% in 2024. This decline remains relevant given the central role of SMEs in the Greek economy.
Taken as a whole, credit developments for SMEs during 2023–2024 point to a gradual normalisation of financial conditions. Nevertheless, key challenges remain, including elevated borrowing costs, persistent structural risk aversion among financial institutions, and uneven access to finance based on firm size or geographic location, factors which highlight the continued need for well-calibrated and targeted public policy interventions.
Following the tightening of the ECB’s monetary policy, borrowing costs for both SMEs and large firms increased in 2022, reversing the downward trend observed over the previous nine years. In 2023, the weighted average interest rate on loans to SMEs rose to 5.8%, while the corresponding rate for large firms stood at approximately 5.0%, implying an interest rate spread of around 0.8 percentage points between SMEs and large enterprises,
In 2024, bank lending rates for small and medium-sized enterprises (SMEs) remained almost unchanged in average annual terms, standing at slightly higher levels than the average for total non-financial corporations (NFCs), reflecting increased risk management requirements. In 2024, the weighted average interest rate stood at 5.9% on loans of up to EUR 250 000 and at 5.3% on loans of over EUR 1 million. At the same time, the interest rates charged by credit institutions on loans to SMEs, which represented 25% of the gross flow of business loans with an agreed maturity in 2024, remained slightly higher than the weighted average interest rate for all businesses. Specifically, the weighted average interest rate for SMEs stood on average at 5.8% on loans with an agreed maturity and at 6.7% on loans without agreed maturity, remaining almost unchanged compared with the 2023 average.
According to the ECB’s Survey on the Access to Finance of Enterprises (European Central Bank, 2025[1])), access to bank lending improved marginally across selected indicators. However, structural barriers to finance persisted. Credit conditions remained markedly uneven, with access varying substantially depending on firm size, geographic location, and sectoral affiliation. Micro-enterprises and newly established firms continued to face considerable constraints due to stringent collateral requirements and conservative risk assessments by financial institutions. In parallel, the availability and uptake of alternative financing instruments remained limited, highlighting persistent gaps in the broader SME finance ecosystem.
In 2024, alternative forms of business financing in Greece recorded a notable increase across all major categories, including venture capital, leasing, and factoring.
Venture and growth capital investments amounted to EUR 555 million in 2024, reflecting a 22% increase compared to EUR 455 million in 2023. This rebound follows the slowdown that occurred after the completion of the first EquiFund cycle in 2022, and it signals the reinvigoration of the Greek VC market. The growth was driven by new fund activations, renewed interest from international investors, and the gradual maturity of the local innovation ecosystem.
In the leasing sector, total financing rose from EUR 2.64 billion in 2023 to EUR 2.74 billion in 2024, marking a modest 4% increase. This steady growth confirms the continued relevance of leasing as a financing tool for acquiring equipment, vehicles, and fixed assets, particularly in sectors with capital-intensive operations.
Factoring and invoice discounting recorded even stronger growth, increasing from EUR 3.22 billion in 2023 to EUR 3.72 billion in 2024, a 15.3% year-on-year rise. The consistent expansion of factoring underscores its importance as a source of liquidity, especially for SMEs operating in markets with long payment cycles or significant export activity.
The overall picture for 2024 indicates that Greek businesses are increasingly turning to alternative and complementary financing tools, beyond traditional bank lending. The concurrent rise in venture capital, leasing, and factoring points to a broader, more diversified financing environment and growing investor confidence in the Greek business landscape.
In 2022, bankruptcies declined significantly, by 56.6%, reaching a total of 23 cases. The same downward trend continued in 2023, with 13 bankruptcies recorded, representing a further 43.48% decrease compared to 2022. The total number of business bankruptcies in 2024 recorded an increase of 76.9% compared with 2023 (23 bankruptcies in 2024, against 13 in 2023).
SME-specific data on NPLs have been available since 2014, when 41.2% of loans to SMEs were classified as NPLs, increasing to 44.1% in 2015, but diminished to 43.2% in 2016. The percentage of SME non-performing loans related to all SME loans was 28.5% in 2020 and has declined for the fifth year in a row since 2016, when it reached 43.2%. Such decline is explained by a significant removal of NPLs from Greek banks’ balance sheets (from 36.1% of total loans in 2019 to 28.5% of total loans in 2020) through the introduction in late 2019 of the “Hercules” asset-protection scheme. The scheme, which was extended in mid-2021, to be accessible until April 2022, enabled the sale of NPLs to a private securitisation vehicle that could subsequently sell more senior securities backed by these assets and guaranteed by the state. As a result, in 2022, only 5.63% of all business loans were non-performing, while the SMEs’ share of NPLs continued to drop and reached 9.18% This downward trend continued during the years 2023–2024, with rates of 7.65% and 3.98% respectively.
In 2023, B2B terms of payment days decreased by 4 days, reaching 32 days compared to 36 days in 2022, indicating a tightening liquidity conditions. In 2024, B2B payment terms in Greece remained among the strictest in Western Europe at 32 days, while liquidity pressures and deteriorating B2B payment behaviour continued to affect business financial stability.
In 2019 and according to Law 4608/2019, the Greek Government established the Hellenic Development Bank (HDB), which took place through the transformation and administrative capacity building of two existing entities, the Hellenic Fund for Entrepreneurship and Development S.A. (ETEAN S.A.) and its subsidiary, the New Economy Development Fund S.A. (TANEO SA). HDB’s scope is to improve SMEs’ access to finance, foster innovation, facilitate investments in infrastructure, encourage equity investments and other alternative financing sources and provide business support to SMEs, mainly through shared-risk loans and guarantee facilities, as well as financial expertise to the public sector. Since its establishment in 2019, HDB S.A. has deployed new financial instruments programmes by using both public and private funds for the support of SMEs.
The Greek government has established several funds to improve SMEs’ access to finance, combining the national budget, the private sector, and the ERDF’s funds.
The Entrepreneurship Fund III - Loan Fund2 was established under the Entrepreneurship Fund III, with the aim of providing investment loans and special-purpose working capital loans to Small and Medium-Sized Enterprises (SMEs) under particularly favourable terms. The objective of the Fund is to improve access to finance for the entire SME sector in order to support and develop their business activity and cover a wide range of financing needs. Furthermore, the programme aims to enhance the productive capacity of enterprises, improve operational processes and the quality of products and services, and ultimately strengthen their competitiveness and positioning in international markets. The Fund has a total budget of EUR 200 million financed by the Competitiveness Programme 2021–2027 and co-funded by the European Union. Including the 60% participation of Credit Institutions in each loan, the total loan portfolio amounts to approximately EUR 450, million. Loan amounts under the Entrepreneurship Fund III – Loan Fund vary according to the nature of the financing product and the applicable regulatory framework. The structure of the programme is divided into two main sub-programmes, each addressing different business needs through targeted financial support mechanisms:
Sub-programme 1 – Investment Loans
Action 1.1: Investment loans ranging from EUR 20,000 to EUR 1.5 million, including: 40% interest-free public co-financing, and partial interest rate subsidy of 3% for two years on the remaining 60%, under the De Minimis Aid Scheme (Regulation (EU) 2831/2023).
Action 1.2: Investment loans ranging from EUR 20,000 to EUR 8 million, including: 40% interest-free public co-financing, and partial interest rate subsidy of 3% for two years on the remaining 60%, under the General Block Exemption Regulation (GBER) – Article 21.
Sub-programme 2 – Working Capital Loans
Action 2.1: Working capital loans ranging from EUR 10 000 to EUR 500 000, including: 40% interest-free public co-financing, and partial interest rate subsidy of 3% for two years on the remaining 60%, under the De Minimis Aid Scheme (Regulation (EU) 2831/2023).
It is important to note that eligibility for the interest rate subsidy under all actions is strictly limited to enterprises that have not previously received business loans through any of the financing programmes operated by the Hellenic Development Bank (HDB).
The Entrepreneurship Fund III – Guarantee Facility3 is a financial instrument established under the portfolio fund “Entrepreneurship Fund III”, co-financed by the Competitiveness Programme of the NSRF 2021–2027. The funds derive from both the European Regional Development Fund (ERDF) and national resources. The creation of this new portfolio fund represents an important step towards strengthening and supporting existing and newly established SMEs in Greece. The Hellenic Development Bank (HDB) has been appointed as the manager of the Portfolio Fund. The purpose of the Guarantee Facility is to support SME financing through guaranteed loans intended for investments, as well as working capital loans, including revolving credit lines. In particular, the guarantee facility covers the following categories of loans:
Investment loans,
Working capital loans,
Revolving working capital credit lines.
Additionally, the facility offers an interest rate subsidy:
2% for enterprises located in Attica and the South Aegean,
3% for enterprises in all other regions of the country valid for the first two (2) years of financing.
Loans are provided without any guarantee commission fees, thereby substantially reducing the borrowing costs for SMEs.
The initial budget of the Guarantee Facility under the Entrepreneurship Fund III is set at EUR 300 million, distributed across two sub-funds as follows:
“General Entrepreneurship” Sub-Fund: EUR 230 million, which through leverage is expected to generate a loan portfolio of EUR 1.642 billion.
“Start-Up Entrepreneurship” Sub-Fund: EUR 30 million, expected to leverage EUR 150 million in guaranteed loans.
An additional EUR 40 million is allocated specifically for interest rate subsidies. In total, the Guarantee Facility is expected to generate EUR 1.792 billion in financing through leverage mechanisms.
The financing conditions vary depending on the category of loan and the applicable aid framework under EU Regulation 651/2014. In the case of the General Entrepreneurship sub-fund, the maximum loan amount for investment purposes may reach EUR 10 million under Article 21(3), or EUR 1.6 million under the De Minimis regime set forth in Article 21(18). The Entrepreneurship Fund III – Guarantee Facility aims to support SMEs by combining public and private capital to promote business growth, investment, and resilience. Through attractive financing conditions and risk-sharing mechanisms, the facility contributes to national and regional development, supports entrepreneurship, and enhances the overall competitiveness of the Greek economy.
The TEPIX III Microfinance Fund4 is a financial instrument launched under the Entrepreneurship Fund III portfolio, co-financed by the European Social Fund Plus (ESF+) through the Operational Programme “Competitiveness” of NSRF 2021–2027. The Hellenic Development Bank (HDB) acts as the managing authority of the Portfolio Fund.
This Microfinance Fund operates as a risk-sharing financial tool, offering:
Investment loans, covering up to 40% of the total loan amount, and
Working capital loans with the goal of enhancing access to finance for very small enterprises and self-employed individuals who are typically excluded from conventional banking services.
It places particular emphasis on:
Women entrepreneurs, and
Other categories of businesses eligible under Article 15(2) of Law 4701/2020 (Official Gazette A’ 128/30.06.2020).
A significant feature of the programme is the provision of free mentoring and advisory services in entrepreneurship and business management to all microloan beneficiaries.
Eligibility for financing under the Microfinance Fund is determined according to clearly defined criteria, which vary depending on the specific sub-programme. The scheme distinguishes between two distinct eligibility streams: one targeting general entrepreneurship, and another tailored specifically to support women-led enterprises. The following categories of beneficiaries may qualify under each sub-programme:
Eligible applicants include:
Very small entities, as defined in Article 2 of Law 4308/2014 (as amended by Law 5164/2024), that meet at least two out of the following three criteria:
Average annual number of employees: ≤ 10
Total assets: ≤ EUR 450 000
Net turnover: ≤ EUR 900 000
Self-employed individuals (natural persons engaging in sole proprietorships)
Other categories of businesses, as determined by Article 15(2) of Law 4701/2020
In addition to the criteria under the General Entrepreneurship sub-programme, eligible applicants also include:
Companies of any legal form (excluding civil law partnerships), where:
A woman owns more than 50% of shares or equity, and
Management and legal representation are carried out by a woman.
Sole proprietorships, where the owner is a woman.
The public resources allocated to the Fund amount to EUR 60 000 000 and are provided by the European Union through the European Social Fund Plus (ESF+). Taking into account the participation of Microfinance Institutions as Financial Intermediaries, the total loan portfolio is estimated at approximately EUR 83 million.
The participating Microfinance Institutions under the TEPIX III Microfinance Fund are AFI (Action Finance Initiative), Microsmart, and TMEDE Microfinance Solutions.
The loan amount will range from EUR 3 000 to EUR 25 000.
The Just Transition Loans Fund115 was established to provide investment loans and working capital to SMEs operating in the Region of Western Macedonia and the municipalities of Megalopolis, Tripoli, Gortynia, and Oichalia of the Peloponnese Region with particularly favourable terms.
The Fund is financed by the Just Development Transition Programme (NSRF 2021-2027) and is co-financed by the European Union. The main scope in order to accomplish a just transition is to support regions and individuals impacted by the social, labour, economic, and environmental effects of the transition towards the Union’s energy and climate objectives by the year 2030 and accomplish a climate-neutral Union economy towards 2050.
The Fund aims to improve the access to financing to small and medium-sized enterprises (SMEs) operating in the Region of Western Macedonia and the municipalities of Megalopolis, Tripoli, Gortynia, and Oichalia of the Peloponnese Region, to promote investments and overall growth for a just and straightforward transition towards the post-lignite era and to meet the goals of the Just Development Transition Plan.
The Fund’s budget amounts to EUR 50 million which is funded by the Just Development Transition Programme 2021-2027 (Pillar 1 of the Just Transition Mechanism). The total loan portfolio is estimated to reach approximately EUR 87 million which includes the banks’ capital leverage.
The Fund refers to SMEs, which are eligible according to the uploaded NACE list on HDB’s website and whose headquarters or branches that will carry out the investment/business plan are based in the Region of Western Macedonia and the municipalities of Megalopolis, Tripoli, Gortynia, and Oichalia of the Peloponnese Region.
The Fund provides 50% of the capital interest rate-free for each loan, while the remaining 50% is charged by the Financial Intermediary bearing relevant interest rates in accordance with its lending policy. Additionally, the Fund may offer a partial interest subsidy (3%) on the interest rate imposed by the Financial Intermediary on its capital for the first three years of the loan (starting from the first disbursement). Please refer to the relevant table with the maximum interest rates offered by Financial Intermediaries.
The amount of the loan may range from EUR 5 up to EUR 500 000.
This Guarantee Fund126 is a financial instrument within the Just Transition Portfolio Fund, whose resources are co-financed by the European Commission through the «Just Transition Mechanism 2021-2027» programme.
The establishment of the new Portfolio Fund aims to facilitate access to financing and ensure a smooth and equitable transition to the post-lignite era for existing and newly established small and medium-sized enterprises (SMEs) operating in the Region of Western Macedonia, as well as in the municipalities of Megalopoli, Tripoli, Gortynia, and Oichalia in the Peloponnese Region. The Fund is managed by the Hellenic Development Bank (HDB).
The Guarantee Fund provides guaranteed investment loans to SMEs, offering an interest rate subsidy of 3% for the first two (2) years of financing. Additionally, it includes the option for a guarantee commission subsidy, should the enterprise choose to utilise it.
The Guarantee Fund aims to support SMEs by offering investment loans under favourable terms through the provision of guarantees. These guaranteed loans can either complement the grant programmes of the Just Transition Fund 2021-2027 or independently support entrepreneurial and investment activities in the designated areas.
The Guarantee Fund addresses to existing and newly established small and medium-sized enterprises (SMEs) operating in the Region of Western Macedonia, as well as in the municipalities of Megalopoli, Tripoli, Gortynia, and Oichalia.
The initial budget of the Guarantee Fund amounts to EUR 20 million, creating total leverage that amounts to EUR 100.000.000.
The maximum loan amounts are defined as follows:
EUR 16 500 000, in accordance with Aid Scheme Article 21, paragraph 3 of Regulation (EU) 651/2014.
EUR 1 400 000, in accordance with Aid Scheme Article 21, paragraph 18 of Regulation (EU) 651/2014 or under the de minimis scheme.
The minimum loan amount is set at EUR 50,000.
The "Development Law Financial Instrument Guarantee Fund (DeLFI7 GF)" is a financial instrument managed by the Hellenic Development Bank S.A. with the purpose of supporting the financing of newly established and existing sustainable SMEs which meet specific criteria and aim to implement investment projects within the framework of the new Development Law N.4887/2022.
DeLFI GF operates as a bridge between Credit Institutions and businesses, creating an enabling environment where businesses can access financing despite potential uncertainties and risks associated with new investment efforts under the Development Law. Essentially, in this way, DeLFI GF contributes to strengthening of Greek entrepreneurship and activity, and to the overall economic development of the country.
It applies to existing and newly established SMEs (as defined in Annex I of Regulation (EU) No 651/2014) that have been classified under a support scheme through the new Development Law 4887/2022 and have not commenced operations before submitting their application on the KYC platform.
The initial available budget of DeLFI GF amounts to EUR 100 million, and with the leverage created, the total portfolio will reach EUR 500 million.
The maximum loan amount is EUR 10 000 000 and the minimum is EUR 50 000 as determined by the financing scheme of the application under the Development Law 4887/2022.
The Micro-Agri Loans Fund for Agricultural Entrepreneurship8 was established to provide co-financing loans via Financial Intermediaries, in order to obtain Small and Medium Enterprises operating in the agricultural and agricultural processing sector access to financing.
The goal of the Fund is accomplished by offering loans on favourable terms, with 50% of the capital of each loan being interest rate-free, as it is financed by the Micro-Agri Loans Fund for Agricultural Entrepreneurship, which is managed by the Hellenic Development Bank (HDB). Additionally, the Fund offers to final beneficiaries a full interest subsidy on the interest rate applied by the Financial Intermediary for the remaining 50% of the capital of each loan for the first two years, plus a grant up to EUR 300 per Tax Identification Number (TIN), optional and upon request, for technical and advisory help (mentoring).
The ability of submitting funding applications for the Micro-Agri Loans Fund, via the KYC platform, the State Aid Information System (PSKE) and the Financial Intermediaries, has been reactivated due to a Fund budget increase of an additional amount of EUR 40 million.
The Fund aims to provide micro loans for investment purposes, covering investments upon agricultural holdings, as well as in investments related to the processing of agricultural products with a final product that is also agricultural. Working Capital may be granted subject to and for the purposes of investment.
The Fund provides 50% of the capital interest rate-free, while the remaining 50% is charged by the Financial Intermediary, leveraging public resources.
The Fund budget has been increased by an additional amount of EUR 40 million, contributing to a total budget of EUR 61.5 million, thus shaping a total loan portfolio of EUR 107 million. The initial budget of the Fund, which was exhausted within the 1st semester of its operation, amounted to EUR 21.5 million with the portfolio height of approved loans amounting to EUR 35.422.000.
The loan amount may range from EUR 3 000 up to EUR 25 000.
EquiFund
EquiFund was established as a Fund of Funds by the Deputy Minister of Economy and Development in December 2016 in co-operation with the European Investment Fund (EIF) and has been evaluated as a major success. As a participating fund, it provides equity to enable high value-added investments, through an initial budget of EUR 320 million, funded in part by the Operational Programme for Competitiveness, Entrepreneurship, and Innovation of the ERDF (EUR 200 million). The European Investment Fund and the European Investment Bank (EIB) provide an additional EUR 60 million each to Equifund under the framework developed by the European Strategic Investment Plan (ESIF). EIF manages the fund. Equity is provided by intermediary holding funds chosen through an open competitive procedure. Specifically, EquiFund invests in the following three key areas:
Research and innovation (technology transfer – innovation).
General entrepreneurship for start-up enterprises (early-stage).
General entrepreneurship for enterprises in development (scale-up/growth).
Special emphasis is placed upon strategic sectors of the Greek economy such as tourism, energy, agri-food, the environment, supply chain, information and communication technologies, health and pharmaceutical industry, creative and cultural industries and materials and construction.
In early 2018, the evaluation process was finalised and eventually, nine funds were chosen to provide equity to Greek SMEs9. Targeted sectors include all sectors with a special focus on food and beverage, agri-business, tourism and hospitality, environment, or energy efficiency. At the end of 2019, nine selected funds by EIF invested a total amount of 216 million euros to 74 SMEs, mainly start-ups in the ICT sector active in applications for hospitality, health technologies, transportation, internet of things, travel-tech, e-commerce, software as a service, big data, business services, real estate etc.
Until March 2023, in a period of four years, the EquiFund had already committed EUR 260 million in 9 Funds, mobilising more than EUR670 million from more than 150 co-investment partners, funded 130 Greek start-ups and scale-ups, and help achieve 9 successful exits. As a result, more than 4 000 jobs have been supported at the time of the investment.
EquiFund I has now been completed, having fulfilled its mission of boosting equity financing in the Greek innovation and entrepreneurship ecosystem.
For the 2021-2027 period, EquiFund will continue its operation with a funding of EUR 250 million from the Operational Programme “Competitiveness”. It is worth noting that Uni.Fund, one of the nine Funds, which focuses on innovation and supports university spinouts and start-ups, has already announced its EUR50 million first close of its second fund and aims to reach its target of EUR60 million by the end of 2023.
EquiFund II – Supporting Greek Innovation and High-Growth SMEs through Equity Financing10
In the framework of the 2021–2027 Multiannual Financial Framework (MFF), Greece has launched the second generation of its Equity Fund of Funds scheme under the name EquiFund II (TAESYM II), with the goal of enhancing competitiveness, strengthening research and innovation capacity, and promoting the development of advanced technology in Greek enterprises.
This initiative is implemented through the creation of a thematic Equity Fund of Funds, managed by the European Investment Fund (EIF), and is designed to provide venture capital and private equity financing to high-growth and innovative SMEs operating in dynamic sectors of the Greek economy.
The total public contribution amounts to EUR 200 million, sourced from EU structural funds, and is allocated across two targeted investment areas:
Life Sciences and Healthcare Fund: With a public budget of EUR 150 million, this fund focuses on the commercialisation of research and innovation within Greece’s life sciences and healthcare sectors. It aims to enhance the domestic R&D and entrepreneurial ecosystem and attract international expertise and investment. The sector is aligned with Greece’s national smart specialisation strategy (RIS3).
Sustainability and Social Impact Fund: With a public budget of EUR 50 million, this fund supports companies addressing social and environmental challenges. It promotes sustainable development and corporate social responsibility, in line with growing international priorities in ESG investment and impact entrepreneurship.
Hellenic Development Bank of Investments S.A. (HDBI S.A.)
HDBI S.A.11 is the successor company of TANEO S.A. It was established in 2019 with the scope to contribute to the provision of equity funds to Greek SMEs with high-growth potential. Since its establishment, HDBI S.A. has launched the following calls for expression of interest by investment schemes (venture capital – private equity funds) from those with relative expertise:
“Restructuring”, “Made in Greece” and “4IR” Funds: In 2019, the Hellenic Development Bank of Investments launched a EUR 700 million investment programme aimed at mobilising more than EUR 1 billion for SME investments through specialised venture capital and quasi-equity instruments. The programme included the 4IR Fund supporting Industry 4.0 SMEs, the Anodos Restructuring Fund supporting the restructuring of manufacturing SMEs and mid-caps, and the Made in Greece Fund supporting SMEs producing and promoting Greek-branded products.
Green Greek Funds initiative: launched in 2020, aims to support Greek SMEs and project companies active in green and sustainable investment activities through venture capital and quasi-equity financing schemes. With public participation of EUR 400 million, the programme focuses on areas such as energy efficiency, circular economy activities and renewable energy production.
Co-investment Fund: launched in 2020 with public participation of EUR 100 million, supports non-listed Greek SMEs through equity and quasi-equity co-investments implemented on a pari passu basis in co-operation with venture capital and private equity funds from Greece and abroad.
Accelerate Technology Transfer (TT) Fund: launched in 2021 with public participation of EUR 60 million, aims to support innovative and export-oriented Greek start-ups with high growth potential through venture capital financing and technology transfer initiatives implemented in co-operation with private investors.
Innovate Now Fund: This Fund, launched in 2022 under the National Recovery and Resilience Plan “Greece 2.0” and supported by NextGenerationEU resources, aims to finance innovative non-listed Greek SMEs operating in rapidly growing technology sectors, including information technology, biotechnology, artificial intelligence and digital applications, through venture capital and quasi-equity instruments. Public participation amounts to EUR 100 million.
Q-equity Fund: launched in 2022 under the National Recovery and Resilience Plan “Greece 2.0” and supported by NextGenerationEU resources, combines public and private capital to provide equity and quasi-equity financing to non-listed Greek SMEs through venture capital funds. Public participation amounts to EUR 400 million.
By the end of 2024, HDBI’s funding programmes had significantly contributed to the development of the Greek venture capital and private equity ecosystem, supporting investments in innovative SMEs and start-ups across multiple sectors. According to HDBI, total available funds exceeded EUR 2 billion, while the institution had committed EUR 775 million to 30 venture capital and private equity funds, which had already invested EUR 362 million in 114 Greek start-ups and scale-ups. The programmes also helped leverage substantial additional private investment and supported sectors linked to innovation, digitalisation, sustainability and technology transfer
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Please cite this publication as: OECD (2026), Financing SMEs and Entrepreneurs 2026: An OECD Scoreboard, OECD Publishing, Paris, https://doi.org/10.1787/075d8058-en
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← 1. According to the European Union standard definition (2003/361/EC), SMEs are firms with less than 250 employees and annual turnover below EUR 50 million and/or balance sheet below EUR 43 million. Within the SMEs category, a small enterprise is defined as an enterprise which employs fewer than 50 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 10 million. A microenterprise is defined as an enterprise which employs fewer than 10 persons and whose annual turnover and/or annual balance sheet total does not exceed EUR 2 million.
← 2. For updated data: https://hdb.gr/en/tepix-iii-loans-fund/
← 3. For updated data: https://hdb.gr/en/tepix-iii-guarantee-fund/
← 4. For updated data: https://hdb.gr/tameio-mikropistoseon/
← 5. For updated data: https://hdb.gr/en/development-law-financial-instrument-guarantee-fund-delfi-gf-2/
← 6. For updated data: https://hdb.gr/en/__trashed/
← 7. For updated data: https://hdb.gr/en/development-law-financial-instrument-guarantee-fund-delfi-gf/
← 9. For more information: http://www.antagonistikotita.gr/epanek/prokirixeis.asp?id=59&cs, Financing SMEs and entrepreneurship: An OECD Scoreboard 2022, https://www.fi-compass.eu/showcase-2023/equifund-financing-growth-and-innovation-greece
← 10. For more information: https://21-27.antagonistikotita.gr/en/equifund-ii-initiative/
← 11. For more information: https://hdbi.gr/en/