Despite Greece’s long history as a trading nation, the country is failing to live up to its
export potential. Small and medium-sized enterprises (SMEs) could significantly contribute
to strengthening Greece’s export performance, thereby helping to jump-start economic
growth and job creation as well as improving the sustainability of fiscal and external
accounts. This paper explores aspects of the business, financial and regulatory environment
that impede the greater involvement of SMEs in export activity. The paper also discusses the
potential role of a development bank and stresses the importance of more R&D and
innovation, the need to develop venture and other equity capital financing, and the need to
build stronger links and networks between universities and industry. It draws some policy
conclusions and suggests policy measures in the areas of finance, regulation, R&D and
innovation.
