Nearly half of Greek small and micro-enterprises suffered a decline in liquidity during the first half of 2026 as overdue debts and operational costs mounted, according to a survey published by the Small Enterprises Institute of GSEVEE. The survey showed that 48 percent of businesses reported a further reduction in their cash reserves, while only 16.4 percent recorded an improvement.
Financial strain also expanded across the sector as overdue debts moved upward. More than three in ten businesses, or 30.9 percent, carried one or more overdue obligations during the first six months of the year, with 13.3 percent burdened by three or more late payments.
Economic climate and expectations
The economic climate index for small and micro-enterprises fell to 56.5 units in the first half of 2026, down from 59.2 units in the previous half-year period. Meanwhile, the expectations index remained virtually unchanged at 58.7 units, compared with 58.3 units previously, reflecting a posture of cautious waiting rather than anticipation of a meaningful recovery.
According to the institute, the combined metrics outline a business environment where economic pressures show sporadic signs of easing without receding in any substantial way. Enterprises remain heavily exposed to elevated operating expenses, restricted liquidity, and sluggish market demand.
The Small Enterprises Institute operates as the research arm of the Hellenic Confederation of Professionals, Craftsmen and Merchants, known as GSEVEE. The organization regularly monitors economic sentiment across Greece, where micro and small businesses represent the overwhelming majority of commercial enterprises and form the backbone of private sector employment.
Surging energy and material costs
Operating costs remained the primary financial burden facing small companies. Compared with 2025, 73.3 percent of firms reported paying more for electricity, 73.2 percent paid more for fuel, and 77.5 percent faced higher costs for raw materials and supplies.
The survey calculated average cost increases of 26.03 percent for electricity, 27.75 percent for fuel, and 24.75 percent for raw materials and supplies. These overhead pressures forced many businesses to adjust their pricing structures.
To absorb higher expenses, 40.3 percent of small and micro-enterprises raised prices on goods and services during the first half of 2026, compared with just 7.2 percent that reduced prices. This shift halted a gradual de-escalation in price growth that had been recorded over the preceding five half-year periods. Price pressures are expected to persist, as 27.2 percent of businesses stated plans for further price increases in the second half of the year.
Liquidity reserves and loan access
Cash buffers across the sector remain dangerously thin. The survey found that 21.8 percent of businesses have no cash reserves at all, while an additional 22.9 percent hold reserves sufficient for at most one month. Combined, nearly one in two businesses, or 44.7 percent, operate with zero or at most one month of financial cushion.
At the same time, access to external financing remains severely constrained. Only 6 percent of micro, small, and medium-sized enterprises succeeded in securing a loan through the European Union Recovery and Resilience Facility.
Resilience in employment
The labor market provided the sole counterweight to the challenging commercial conditions. Eight out of ten businesses, or 81.1 percent, maintained a stable workforce during the first half of the year.
Overall employment balance remained positive across the sector, with 12.3 percent of businesses increasing their staff headcount compared with 6.5 percent that implemented workforce reductions.
