Endeavor Greece Entrepreneurship and Investment Opportunities

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYThe future of Greece dependson its ability to establishsustainable growth and job creation.This report does not focuson public policies requiredto bring about change. It is aboutentrepreneurs that emerge to capturepotential; it is for investorsand institutions that are eagerto back them.This report illustratesentrepreneurship and investmentopportunities in Greece today.



CONTENTS 4 6INTRODUCTIONTHE BUZZ ABOUT ENTREPRENEURSHIP 8JUST A DISCUSSION OR AN ACTUAL 14ENTREPRENEURIAL SHIFT?THE OPPORTUNITY TO GO AFTER 22EXAMPLES OF HIGH-IMPACT ENTREPRENEURSHIPIN GREECE 28PROFILE & NEEDS 34OF HIGH-IMPACT ENTREPRENEURS IN GREECE 36THE VIEW OF INVESTORS AND OTHER STAKEHOLDERS 40NOT YET AN ECOSYSTEMWRAPPING-UP

INTRODUCTIONIn the years following the Greek crisis, entrepre- tance of public policy changes. The State itself, inneurship in Greece has emerged as a hot trend its inability to promote structural reforms to facili-and a key lever for growth restoration and job tate growth, has also ridden the entrepreneurship trend, typically lacking a clear strategy on how tocreation. At the same time, a burgeoning dis- effectively promote and support it. A number ofcussion about business opportunities new local and international institutions have beenand a shift towards entrepreneurial set-up to promote entrepreneurship and supportactivity have emerged in the absence of entrepreneurs. New local funds have been acti- vated and - as of recently - an increasing numbercareer alternatives and in pursuit of national com- of foreign funds attempt to explore opportunitiespetitive advantages, outlined in a number of studies to invest in promising Greek entrepreneurs. Inconducted by various local and international insti- addition to being an actual lever for growth andtutions, banks or consulting firms. investment, entrepreneurship has also emerged as a powerful CSR tool.Collectively, these studies highlight and substanti-ate multiple growth opportunities, covering broad This report does not attempt to re-identify theareas in traditional sectors (e.g., in Tourism, Agri- broad growth opportunities, nor does it outlineculture & Food, Energy), ‘niche’ sub-sectors, such the required policy changes. It takes the growthas waste management, logistics or aquaculture, opportunities as given, and the policy changes asbut also technology- and knowledge-intensive needed (but unfortunately not granted). Instead,areas. it aims to take the discussion one step further and address a few very practical questions:These opportunities and the natural tendencyto refer to entrepreneurship as a key enabler tomaterialize them have been often used by theinvolved parties as a means to highlight the impor-1 To what extent has the widely discussed ‘entrepreneurial shift’ really materialized and translated into new business ventures?2 To what extent is the mix of these new ventures post-crisis different from the pre-crisis one? Do the new ventures capture Greece’s competitive advantages or do they still follow the pattern of the country’s old and unsustainable growth model?3 What are some specific opportunities for entrepreneurial activity based on the country’s competitive profile and current situation?

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAY4 What are some examples of existing high-impact entrepreneurship in the various growth sectors? Along the same lines, what are the most interesting investment opportunities for local and international investors?5 What is the profile of these new entrepreneurs and what are their priorities and needs?6 What do investors and other stakeholders see when dealing with Greek entrepreneurs?7 Finally, what are the gaps of the current entrepreneurial landscape, and how does this evolve to reach a more comprehensive ‘version 2’?This report tackles the questions above from • All private, corporate or institutional playersa number of perspectives. It presents facts on in Greece and beyond, to clarify myths andcompany registries and de-listings across Greece; realities, through hard facts and figures, withit leverages primary quantitative and qualitative regards to Greece’s current and aspired growthsurveys conducted on investors, entrepreneurs model.and institutions; it builds on existing knowledgeand it tests validity through interviews with busi- Of course, this report does not aim and cannot –byness leaders, as well as own experience from nature– be exhaustive. It includes a subset of theEndeavor’s first year of operation in Greece. material and knowhow and outlines the major conclusions of our work, in order to hopefullyWe hope that the report’s key conclusions will be spur a more detailed discussion, tailored to eachuseful for multiple stakeholders:• Existing entrepreneurs, to help calibrate stakeholder, with regards to the presentpriorities and needs based on the multiple per- and future of Greece as an entrepre-spectives presented. neurial hub, investment destination• A spiring entrepreneurs, to spot potential in and ultimately job and wealth creator.specific growth-relevant areas.• Investors, to identify potential investment Haris Makryniotis 5opportunities in existing or new ventures. Endeavor Greece MD• P rofessionals, to see the emerging trends Athens, October 2013and potentially explore career transition towardnewer, smaller employers in different sectors.

1 THE BUZZ ABOUT ENTREPRENEURSHIP Greece has always exhibited a strong ten- manufacturing and agriculture constituted dency towards entrepreneurship. With ~75 a small share of the economy, and focus on established businesses per thousand inhabi- R&D and technology was minimal. What’s tants and more than 55,000 new businesses more, with the exception of a few companies, established every year, pre-crisis Greece the overall sophistication of products and demonstrated almost double the average service offerings had been low. EU figure in terms of per capita business activity. The vast majority (97%) of these Making matters worse, businesses were businesses were classified as micro (1-9 hindered by bureaucracy and administrative employees). Therefore, while productivity in hurdles, and entrepreneurship had been as- larger business segments had been compa- sociated with corruption and informality. The rable to other European countries, the low most prestigious path for young graduates productivity associated with microbusinesses involved a salaried work or ‘high-profile’ self- drove down the overall productivity of Greek employment in law, medicine, or engineering, companies. rather than an aggressive pursuit of high- impact entrepreneurship. In this environment dominated by small busi- nesses, a significant portion of economic Leading to the economic crisis, entrepre- activity had focused on low-value-adding neurship was - to a large extent - an sectors. Retail and wholesale were dominant, unattractive career choice with bad con- notations. pGrreeek -enctrrepirseniesurship 2x 97% classified as micro >55.000 new businesses number of companies every year per capita vs. EU

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYThe crisis shifted the public perception of entre- the focus on the country’s ‘sinful’ past and thepreneurship. In an environment of unforeseen State’s inability to effectively carry out reforms,unemployment levels and almost complete lack international attention supported a positiveof traditional employment options, entrepreneur- inflow of international institutions related toship was declared by many as the way out and entrepreneurship. These were supplemented withforward. Sporadic success stories were identified multiple local organizations. A number of con-and widely publicized in the media. The crisis tests and awards were established, while morerevealed or highlighted business opportunities than 15 incubators, accelerators and funds wereand - although criticism and suspicion remained, launched. A new growth model – less focused onespecially for certain businesses and their oc- retail and more geared towards value-addingcasional interdependency with the State; entre- sectors - was described, while the new entrepre-preneurship became a hot topic in Greek web and neurial landscape familiarized itself with termssocial networks. like mentoring, networking, and smart capital.The new local trend was strengthened by the In 2012, entrepreneurship in Greece hadshift of the global spotlight onto Greece. Beyond already become a ‘hot’ discussion topic.on MediaGreek entrepreneurship @Mentions 2011-2012 Social Media: ~11.000 Website/blogs: ~23.000 vs @Mentions 2012-2103 Social Media: ~24.000 Websites/blogs: ~35.000 7

2 JUST A DISCUSSION OR AΝ ACTUAL ENTREPRENEURIAL SHIFT? Even though there has been extensive contraction. During the first half of 2013, the discussion with regards to the so called number of new companies dropped by another ‘entrepreneurial boom’, little attention 14%, corresponding to a total ~45% decline has been paid to the measurement of the vs. the 2008 peak. magnitude of this shift. In other words, to what extent has the discourse about In terms of sectoral focus, the analysis on all entrepreneurship actually translated into new companies established in Greece since more successful entrepreneurs towards a the beginning of the crisis yields one major more sustainable growth model? conclusion: The actual figures on registrations of new Greece has largely failed to shift businesses across Greece are pretty revealing. focus of entrepreneurial activity to capture the country’s After peaking in 2008, the number of new competitive advantages and companies in Greece dropped by ~30% opportunities; however, we do at the start of the crisis. Following this observe gradual yet sporadic sudden drop, the number of company emergence of new ventures with registrations remained relatively stable high growth potential and focus between 2010-2012, showing remarkable on extroversion and innovation. resilience throughout a period of a 25% GDP 45% decline in new companies registered vs. 2008 25% GDP contraction

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYData shows that the majority of the new ven- The undisputed ‘winner’ of 2012 is the categorytures still tend to persistently follow patterns of restaurants, bars and catering and foodof the pre-crisis unsustainable growth model. retail outlets, by a factor of 4 vs. the second runner that is the clothes and shoes-sellingIn 2008, the top-5 categories of new busi- shops. Accounting/business consulting servicesnesses (in terms of number of companies follow. Even if in lower position compared toregistered) were: 2008, construction companies still appear in 2012’s top 5, with the fifth position reflecting1. Construction companies the inflow of solar panels in energy genera-2. Retail stores, selling clothes and/or shoes tion and trading. One needs to go down to3. Real estate position #9 to come across ICT companies,4. Accounting and business consulting services #15 for tourism accommodation providers5. Restaurants, bars, catering and food retail and #17 for food processing ventures.outlets In sum, 93% of ventures thatIn 2012-2013, despite the radical drop in dis- were launched in Greece in 2008posable income, as well as a dearth of invest- did not focus on high value-addingments in public infrastructure and residential/ sectors; by 2012, this figure wascommercial buildings, the mix of new busi- still around 90%.nesses keeps following a similar growth logic.90% of new ventures in 2012 still not focusing on growth sectors 9

newTop 5 categories of venturesestablished in Greece2008 1. Construction 2. Retail Stores – Clothes & Shoes 3. Real Estate 4. Accounting & Business Consulting 5. Restaurants, Bars, Catering & Food RetailGreece’s Growth Model in 2012 42,347 10,003Source: UHC Total New Companies Restaurants, bars, catering, food retail

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAY2012 1. Restaurants, Bars, Catering & Food Retail 2. Retail Stores – Clothes & Shoes 3. Accounting & Business Consulting 4. Construction 5. Energy Generation & Trading 2,046 1,621 690 350 1,185 6402,100 1,628Clothes & Shoes, 11 Retail Stores Accounting & Business Consulting Construction Energy Generation & Trading ICT Tourism & Accommodation Food Processing Manufacturing

The law ofthe 10% of the 10% of the 10%On a positive note, the 10% of practices compared to local competition; ofcompanies that focused on the those, a further 10% can be characterized‘correct’ sectors represented as truly high-impact companies, led bya 40% improvement over the visionary entrepreneurs that have theequivalent pre-crisis figure. aspiration and the potential to significantly scale-up their business and create multipleOut of these companies, one tenth exhibit jobs and revenues compared to peers.higher probability for survival and growth Even if this 1/1000 may sound trivial, it stillas a result of more sophisticated business= 100 companies

ENENTRTERPERPERNENEUEURSRHIAIPL AND INVESTMENT OPPORTUNITIES IN GREECE TODAYcorresponds to approximately 40 new grow enough to absorb a significant part of thehigh-impact companies per year unemployed workforce and establish healthierthat focus on growth-relevant role models. Rather than a theoretical exercise, itsectors. These firms can help is a practical mandate: as we will further discuss,transform the Greek economy and these high-impact entrepreneurs can alreadyconstitute attractive investment be identified and their profile and needs can beoptions. With proper support, these are the effectively described.companies that in a 5- to 10-year horizon can 42,347 new companies in 2012 ~4,000 growth relevant ~400 high probability for growth ~40 high-impact 13

3 THE OPPORTUNITY TO GO AFTERHigh-impact entrepreneurs in Greece and There is a golden window for entrepreneurialinvestors with interest in Greek market activity in Greece, as the country goespursue four types of business opportunities through a period of total restructuring, andthat are either structural or have emerged local players start competing at a regionalduring the recent crisis and extend beyond and global level. Investors, too, can benefitthe country’s aggressive privatization plan: from this golden window, as low-cost opportunities in the Greek market often1. Opportunities in areas in which Greece outweigh the risks, barriers to entry, and thepossesses competitive advantage (e.g., State’s failure to create a business-friendlytourism, agri&food), that is still untapped. environment. This golden window is notA number of reports (by institutions like the expected to last too long; most likely it willFoundation for Economic and Industrial have duration of 12-24 months, before itResearch, consulting firms like McKinsey and gradually scales back to steady-state levels.BCG, as well as local and international banks)are of one voice in regards to the nature Rather than re-stating the broad growthof these sectors and the policy changes opportunities and relevant sectors, thisnecessary to facilitate their growth. report identifies the specific sub-sectors or niche areas that ‘make sense’ for Greece2. Opportunities in sectors that undergo a to develop and therefore for entrepreneursbroad restructuring (e.g., financial services, and investors to consider. Depending onenergy), allowing for market shares to move the nature of the opportunity, the capitalbetween existing or to new players, typically intensity, the importance of innovation vs.typically through consolidation. scale and sophistication, these opportunities can become a game for capital-backed3. Opportunities driven by global trends investors, for innovative entrepreneurs, but(e.g., in ICT) which can be captured by Greek also for solid professionals with structuredentrepreneurs at local, regional or global thinking and business sense.level.4. Sector-agnostic opportunities in individualcompanies whose potential can be maximizedif they address their current liquidityissues and/or go through operational andorganizational restructuring. 12-24 months durationof ‘golden window’ for entrepreneurs and investors

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYIn tourism and travel, • Need for better services beyond accommodation to create a holistic experience to the traveler andthe country’s starting point is a largely uncom- establish links with other locally relevant activity,petitive, unsophisticated and mono-thematic e.g., in food sector or culture. This could includeproduct, severely constrained by current liquidity B2B services to accommodation or cruise provi-drainage, but still with huge growth potential; ders - which could then be promoted to the endentrepreneurial and investment opportunities customer - but also direct B2C services.are driven by 5 trends and needs: • Need for more sophisticated support services• Need for total upgrade of product offering - to and customer care, covering pre-visit experience,compensate for higher cost compared to neigh- booking and transportation.boring countries- but also for clearer distinctionbetween the various traveler segments: budget/ • Need to utilize technology to allow disinter-mass, upscale, luxury. This upgrade will entail mediation. Online marketplaces can facilitateacquisition and restructuring of old units, better exchange between customers and servicemanagement and services in existing units, but providers, and analytics technology can offeralso new targeted developments in certain geo- tailor-made, locality-driven experiences. Thisgraphical areas and thematic segments. could include not only domestically developed communities but also support to local providers• Need for higher sophistication and infrastructure to establish reliable presence in internationalin less traditional, but rapidly growing products, schemes, such as AirBnB.e.g., cruises, sailing/yachting, mixed-use resortsintegrating golf courses, vacation homes and/ormarinas. 15

In agriculture • Need for product innovation and marketingand food, strategy to address specific customer seg- ments and trends (e.g., gluten-free products,the currently sub-scale, unbranded, non-stan- purity over diet, ready-to-eat meals), wheredardized, domestically-focused agricultural big multinationals may allow for new orproduction allows for huge improvements by smaller players to emerge.both investors and entrepreneurs. The needsto be addressed by existing or new players • Need to re-think focus on organic to addressinclude the following: specific needs of specific international markets (e.g., Germany, Austria, Scandinavia).• Need to shift to large-scale production incertain ‘commodity’ products (e.g., tomatoes), • Need to grow local players to provide localwith proper use of innovative technology, and international food champions with rawproduct standardization and traceability. materials that are currently imported; need to develop underlying R&D and biotech• Need to increase production in ‘niche’ capabilities to create and sustain competitiveproducts, such as herbs and superfruits (e.g., advantage.walnuts, berries, pomegranates, kiwis) thatare relevant for Greece and can serve for • Need to develop/embrace high-end agri-exports or import substitution. related technological tools and solutions to increase quantity and quality of output (e.g.,• Need to ride international trends that boost remote land monitoring, measurement ofattractiveness of certain Greek products resources consumption).(e.g., greek-style yogurt in US/UK market). • Need to address recent trends on disinter-• Need to approach international distributors mediation (direct producer to consumer) andwith a portfolio of products, rather than with urban farming.a single product. This would require produ-cers and product champions to collaborate inorder to penetrate international markets.• Need to build a Greek/Med-diet concept,based on portfolio of products, with link tothe local producers, and offer it directly toend-customer, through upmarket restaurantsand delis.

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYIn energy, • Entrepreneurial potential will be largely driven by the long-term need of industrial and commer-following the recent unsustainable boom in cial players, public institutions (e.g., large hospi-renewables, focusing mainly on small scale solar tals), and secondarily residential customers to re-and wind farms, we are ahead of a broad sector duce energy consumption in buildings and otherrestructuring. And targeted opportunities exist facilities; this need, which grows increasinglymainly in energy efficiency and energy-related relevant and intense, creates the opportunity forR&D: entrepreneurial activity along the entire energy efficiency value chain from measuring use and• Photovoltaic bubble is deflating, while a large designing solutions to implementing smart grids,scale and capital heavy consolidation effort is building retrofits, and monitoring consumption.expected in on-shore wind, relevant for businessplayers with access to capital; efforts will likely • Local large-scale production of components forfocus on creation of a large portfolio of assets RES installations has proven unsustainable; how-(typically at pre-environmental study stage) ever, high-quality R&D centers are emerging inacquired from investors that want to exit the specific areas of Greece, developing sophisticatedmarket due to regulation, taxation and pricing materials and techniques for energy generation,instability. efficiency and storage, with the vision and the ability to become relevant at a global level.• Sporadic opportunities will still lie in alterna-tive types of renewables (small hydro, geothermal,biofuel, waste-to-energy), while offshore windappears to be still pre-mature for large-scaleinstallations. 17

In ICT, • Need to develop globally scalable but locally customized services to address user needsbeyond creating ‘another mobile app’, a number and behaviors in routine tasks - from trans-of international trends call for attention: portation and booking to digital archiving.• Need to ‘crack’ mobile marketing and ad- • Need to address the $70bn global gamingvertising, to capture a rapidly growing global industry and its intersections with differentmarket and a smartphone-dominant world, platforms and purposes (e.g., social gaming,which however, has not yet been properly marketing campaigns).addressed. • Need to selectively explore emerging sec-• Need for B2B cloud services across sectors tors such as 3D printing, wearable technologyto allow for integration of services currently and Internet of things which may evolve toprovided by different players in different game-changing trends globally.geographies. More importantly, beyond the above inter-• Need for increased information security national ICT trends, which often entail fierceand related services for large corporations global competition and potential conflict with(e.g., financial institutions, telecoms), but also large international players, there is significantfor small and medium enterprises. opportunity for local entrepreneurs to• Need for products and services to address address the technological needscore functional areas (e.g., HR, sales, supply of sectors where Greece has achain) and transform operations of specific structural advantage and strongbusiness segments (e.g., SMEs) with efficient presence. In practical terms, this wouldand user-friendly technology. entail the development of local ICT champions• Need to provide tools for effective behavioral that create solutions for Tourism, Shipping,profiling of consumers to allow for cus- or Food & Agri customers and thus becometomization of product offering and dynamic centers of excellence at a national and subse-pricing, while abiding by data protection regu- quently regional or even global level.lation and avoiding head-to-head competitionwith large established players.• Need to explore “second-screen” solutionsto allow consumers to interact with thecontent consumed on TV (e.g., sports, shows,movies, music).

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYBeyond the above core sectors, a number of ad- already creates investment opportunities, mainlyditional opportunities arise in other areas, driven for asset-backed players.by the current status of Greek economy, but alsoby international trends. Indicatively: • In Retail & Commerce, mom-and-pop• In Insurance, the online, direct to customer stores will continue to lose ground at a quickening pace. In malls and shopping neighborhoods,channel is expected to grow in importance and stores will segment themselves along price point:market share, leading to reduced cost and better discount, popular consumption, and upscale.service to customers; at the same time, the They will also brand themselves as ‘fun andrestructuring of the broader financial sector and leisure destinations’, instead of mere shoppingthe liquidity pressure on insurance players create experiences.opportunities for shifting large customer portfolios As the pressure in disposable income persists,among established players as well as entrants in planning of purchases and dynamic price com-the market. parison become more relevant. Online ordering is expected to increase, especially for commodity• Mobile payments are expected to drasti- products and repeated purchases. For planned purchases, user experience will be critical, butcally grow and integrate offering of other products always in combination with the cost element. A(e.g., ticketing, booking), especially in certain total re-thinking of in-store experience will be re-emerging markets where mobile evolves to the quired. ‘Next-day’ stores are expected to becomedominant channel of transactions (e.g., sub- showrooms that provide personalized customerSaharan Africa); at the same time, the broader experience and insights, allow for direct onlinefinancial sector is expected to move towards ‘the ordering and delivery and/or price comparison,bank of tomorrow’ with increased integration of and are ultimately linked to the customer’s existingfinancial services and diminishing physical presence. inventory of goods (e.g., personal wardrobe) and social networks.• In Health, the aspired increased penetration It becomes evident that - beyond photovoltaicof generics creates opportunities for product de- panels, mobile apps and olive oil – there arevelopment and production at local level; in order plenty of investment and entrepreneurial oppor-to effectively compete vs. large international tunities, relevant not only for the local market,players, local players would need to pursue scale but even more so at a regional and global level.and focus on R&D to address segments that fallout of the scope of large multinationals; local talent The level of required investment and the impor-and infrastructure can be leveraged for clinical tance of scale and innovation vary among oppor-research and trials, while population aging creates tunities. Still, in many of the identified opportu-the need for elderly care and long-term condition nities, more than innovation and mass capital,management and solutions, entailing m-healthtools, and targeted services, but also physical what is mainly required is execution in ainfrastructure. professional and structured way. In• In Biotechnology and Nanotechno- addition to, or even before seeking to apply ultra-logy, the top quality of Greek researchers with innovative practices adopted in extreme geogra- phies, one could start with the basics; the inputinternational exposure can form the basis for (quality raw material, natural resources, humanlocal R&D hubs, with spin-offs and commercializa- capital) is already there.tion where relevant.• In Waste Management and Green-Tech, the compliance with EU regulation 19

49 Areas of OpportunitySector Opportunities Tourism Capital Intensive • New mixed-use resorts • New/upgraded marinas • Restructuring of large hotels • Segment-specific accommodationAgri-Food • Commodity products in large scale (e.g., tomatoes) • Aquaculture • Consolidation of olive-oil marketEnergy & Green-Tech • Consolidation of wind farm assetsICT • A lternative renewables (small hydro, geothermal, biofuels) • Waste Management • Mobile marketing & advertisingFinancial Services • Online/direct to consumer insuranceHealth • Mobile payments with focus on emerging marketsBiotech/ Nanotech • R&D-heavy manufacturing of genericsCommerce • Elderly and LTC care services and infrastructure • Segment-based shopping and leisure destinations

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYSophistication-based Innovation-based• L arge scale hospitality management • Disintermediation/tech-enabled across segments communities and marketplaces• Integrated online travel agencies • Devices and tools for improved travel• Physical travel experiences and services experience (e.g., in museums and cultural sites) across themes (e.g., sailing, culture, gastronomy)• N iche products, such as herbs and • S egment-focused processed products ‘superfruits’ (e.g., pomegranates, walnuts, (e.g., gluten-free, healthiness, limes, berries) ready-to-cook meals)• Focused organic targeting selected markets • F ood biotechnology and agri-related• Product portfolios rather than single products technology• International delis and restaurants focusing • T ech-enabled disintermediation/direct on Greek/Med diet farmer to consumer• Integrated energy management services • High-end R&D focusing on generation, (measuring/monitoring, retrofits, efficiency and storage smart-grids) • T ech-enabled mobility solutions,• T ech-solutions for sectors relevant for Greece including transportation sharing and the region (e.g., tourism, agri, shipping) schemes (e.g., bike sharing)• B2B cloud services integration • Behavioral-driven data management• Information security as a service and profiling• F unctional B2B tools (e.g., HR, Sales) • Second-screen solutions with focus on SMEs • 3 D printing, wearable tech. Internet of• F unctional B2C tools things (e.g., transportation, digital archiving)• Social media management• Gaming• Integrated personal finance tools • ‘Bank-of-tomorrow’ solution and interfaces• Patient support services and adherence • M-health tools and solutions• Clinical trials • • F ocused R&D for commercialization• Online price comparison and purchasing • New in-store experience, combining physical and online presence, 21 linked to customers’ inventory

4 EXAMPLES OF HIGH-IMPACT ENTREPRENEURSHIP IN GREECEAs discussed, out of the opportunities drivers of Greece’s wealth and job creation indescribed above, a fraction is already being the years to come.addressed by a small share of entrepreneurs What are the characteristics of this high-and their companies. These companies impact entrepreneurial activity recentlyrepresent only 10% of total new ventures emerging in Greece? What are some remarkableestablished in Greece every year. Of those, investment opportunities for investors that1%, corresponding to ~40 new companies are interested in companies in early or scale-annually, can be truly characterized as up stage? What are, therefore, the gaps thathigh-impact, in the sense that they have the remain unfulfilled and the opportunities to beentrepreneur and business fundamentals to captured?disproportionately grow to become the keyIn terms of Start-up companies In terms of Scale-up companies(typically relevant for angel to Series A (typically relevant for Series B+ financing),financing), the entrepreneurial landscape we observe:includes: • Low number of ICT companies that have• T wo main clusters of activity: shown relevant traction and meaningful - In ICT – with high number of new ventures, revenues, more so in areas such as mobile geared towards mobile applications, marketing and B2B services, and less in demonstrating low revenues. the universe of mobile apps; few successful -In the broader agri and food sector – with e-commerce examples exist, mainly in the high number of new companies, offering price-comparison area. both single products and portfolio of products, still fragmented, but already • Significant number of agri and food demonstrating revenue traction. companies, with significant revenues, more in cases of portfolios of products, but also and• F ragmented activity in other sectors, with to a lesser extent, in the cases of champions emerging, but still weak, clusters of activity at a product level or selected food retail in certain niche areas: ventures. -Gradually growing number of new ventures in tourism and travel, with focus on digital • Sporadic cases of success in the areas of travel services/experiences, hospitality online travel agencies, financial services/ management and online travel agencies. payments and med-tech/bio-tech; growing - Small number of players in financial success for hospitality management services, with focus on insurance and companies in Tourism and selected high-tech payments. ventures; still low scale and revenues for - Emerging clusters of activity in niche areas, energy-related firms. such as biotech, med-tech and nano-tech. - Sporadic and low scale efforts in other areas.

ENENTRTERPERPERNENEUEURSRHIAIPL AND INVESTMENT OPPORTUNITIES IN GREECE TODAYWhat are the implications of the above? Vibrant community of ICT start-ups with few success storiesGrowing activity in Tourism and Travel,but still sub-scale and not addressing Aspiring tech start-ups, driven by internationalfull spectrum of services success stories, are predominant in the entrepre- neurial landscape. There is need to shift focusThere are signs of success stories in the area from mobile applications to more value-addingof online travel agencies that manage to effec- products and services in areas where technologytively compete internationally and are likely to serves as enabler, in sectors that are regionallygo through consolidation in the mid-term; there relevant, and in business segments that are inter-is still need for higher quality accommodation in nationally attractive (e.g., SMEs).the various traveler segments and higher scale inhospitality management companies to address Emerging players in financial services,industry gaps and specific needs, such as revenue leading sectoral transformationmanagement. There is still opportunity in ef-fectively addressing other tourism themes (e.g., A small group of players in financial servicessailing tourism, gastronomy, culture) and in of- seems to be in the forefront of innovation infering an end-to-end experience to the traveler, terms of online distributions channels, in insu-customized to their needs, budget and personal rance, mobile payments, price comparison. Morepreferences, which could also be offered as a B2B traditional players seem to be slow in following,service to accommodation or cruise providers. both due to their size and inflexibility, but alsoThere is a new generation of companies focusing driven by the ongoing recapitalization and con-on online communities and marketplaces for ‘local’ solidation effort in the entire sector.experiences, which do need to further strengthentheir business model and aggressively grow. Niche players in niche high-tech areas (nanotech, biotech), pursuing larger scalePositive signs in agri and food, but stilllacking scale, branding and route-to- Despite the very high quality of research in nichemarket areas, such as biotechnology or nanotechnology, and the sporadic examples of commercialization,Innovation has almost monolithically focused there is still potential in three areas: gap betweenon olive oil production in a boutique/up-market. R&D and commercial prototypes, better connec-This trend already reaches saturation. Greek tion to industry, and aggressive corporate cultureentrepreneurs still lack scale, brand strategy, that will sustain strong R&D.and route-to-market. National champions gradu-ally get dominant position in different product Overall, we have identified a portfolio of morecategories (e.g., snails, balsamic vinegar, mush- than 100 high-impact/high-performingrooms), large industrial players shift to primary companies in their scale-up phase, followedproduction (e.g., in tomatoes) mainly for imports’substitution, product aggregators that put to- by a new wave of promising start-ups. They dogether portfolios of products start emerging. The seem to address relevant sectors, but they oc-latter appear to be more successful in scaling casionally need calibration in terms of focus andup and addressing exports, thus being the most scale. At the same time, there is still significanteffective vehicle to achieve significant size for room for new ventures in nearly all sectors. Ininternational standards. addition to filling these opportunity gaps, focus should be given to scaling-up the existing promi-Unsophisticated energy and green-tech sing businesses. To do so, it is critical to bettersector understand the profile and needs of these high- impact entrepreneurs.There is opportunity in selected examples ofquality ventures with international outlook and 23scale-up potential.

Map of emerging entrepreneurial landscape in GreeceScale-up companies Financial Services Mobile Services Average Revenue and Marketing Med-Tech/ Bio-tech Business Services Food & Beverage Digital Media (retail chains) e-Commerce Ηi-tech Hospitality Management Gaming Energy Services/Green-Tech Mobile Apps Number <5 5-10 of companies Food &Start-up companies Energy Services/ Beverage Average Revenue Green-Tech (retail chains) Financial Services Health Services Farmer-to-consumer Booking/Travel Med-Tech/ Number Bio-tech Hospitality of companies <5 Management Digital Media Fashion 5-10

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYBooking/Travel Tourism & TravelFood & Beverage Agri & Food(portfolio of products) ICT HealthcareFood & Beverage Energy/Green-Tech(single product) eCommerce Fashion / Apparel Financial Services10-20 20-50 50+ Food & Beverage (portfolio of products) Mobile Services e-Commerce Food & Beverage and Marketing (single product) Business Services 20-50 Mobile Apps Ηi-tech Gaming 50+ 25 Travel Services/ Experiences10-20

Indicative examples of high-impactentrepreneurs in Greece Agri & Food Papadimitriou FinancialTerra Creta Fereikos-Helix ServicesKriton Artos Mastiha Shop ZuluTrade Hellas DirectFigourmet Cretan HerbalChem VivaRadiki Gaea Epsa Unismack FashionKrocus Kozanis Products Pure Greek & DesignConcepts Loux Ergon Netrobe Zeus+DioneMacedonian – Thrace Brewery Yatzer Gineagrotis Kayak Energy & Tourism Green-Tech & Travel Intelen Hotelbrain Brainbox Incrediblue Airtickets Travelplanet24 E-travelHealth &Biotech BioaxisProtatonce

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAY Price High-Tech Comparison NanophosInsurance Market Fasmatech Skroutz Fasmetrics Helic Mobile Digital Marketing MediaOut There Media Daily Secret Warply Gaming Aventurine Business Mobile Apps Services Taxibeat Persado PinnattaObrela Security Industries 27 Workable HR Intale

5 PROFILE & NEEDS OF HIGH-IMPACT ENTREPRENEURS IN GREECEA lot has been said about the link between to identify the ‘typical’ profile of a Greekthe public sector’s inability to absorb new high-impact entrepreneur, i.e., of a businesstalent as a driver of entrepreneurial growth, leader that has the vision and capacity toabout the distinction between ‘out-of-neces- build a strong company, and ge-nerate mul-sity’ entrepreneurs versus those who start tiple revenues and jobs compared to peers.their companies by choice, and about theimportance of business experience as a pre- Knowing in advance that not a single profilerequisite for a successful entrepreneur. is sufficient or necessary pre-condition for somebody to become a successful entrepre-We surveyed an extensive sample of high-po- neur, the conclusions of this survey are stilltential entrepreneurs in the country in order important in identifying certain pattern.

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYThe survey results imply that the common Silicon opportunity, rather than in the lack of any careerValley entrepreneurial stereotype is not the alternatives.dominant or the most successful one in Greece.Next to the attractive model of the 22-year old All surveyed high-impact entrepreneurs in Greeceentrepreneur, that starts his/her career in a ga- declared that they have never worked or aspiredrage in Silicon Valley a new profile arises: that of to work for the core public sector, busting thethe more seasoned individual, with solid work ex- myth that the current public hiring freeze willperience, international exposure during or after spur an equivalent burst of high-impact entrepre-studies, an already developed personal network neurial activity.and motivation that lies in an identified businessDetailed resultsWhy did you decide to become entrepreneur?Business idea/opportunity 58%Higher income 45%Independence 23%Family business continuity 9%Need/no other option 2%Age 2%18-24 44%25-34 41%35-44 13%45+Gender 81%Male 19%FemaleStudies 42%Abroad 30%In Greece 28%In Greece and abroadPrevious business activity 37% 29Private sector in Greece 20%Private sector abroad 18%Other owned business 15%Family businessInternship 6%Public sector 2%No previous business activity 2%

Similarly, the most competitive entrepre- that will allow their business to move toneurs seem to fit a certain mold. They the next level. Finally, many are willing andare experienced businesspeople who are eager to compete internationally.extroverted and eager to supplement theirknowledge with advice from the business These results contradict the stereotype ofcommunity. They are willing to invest in the introverted entrepreneurial leader, withhigh-quality resources, and they are always no international aspirations, often associ-ready to join networks and pursue alliances ated with corruption and informality.Financing alternativeaggressive pursuit of funding sources to bypass the lack of bank financingPresence in international markets75% 46% issues:plan expansion both have or plan to move • lack of access to solid partnersin Greece and abroad HQ abroad in the destination market • unclear mechanics of international markets • funding to support expansion • NOT the country’s negative imageSkills & 80% 60%recruitment search additional talent seek resources in sales to implement and business development their growth plans

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYBusiness 75% issues:mentoring already receive some sort of • advanced sectors (e.g., ICT): strategic advice, more often lack of sufficient and truly from other business owners knowledgeable mentors on an ad-hoc way, rather than in a structured manner • more traditional sectors: lack of access to knowledgeable mentorsmaximize use 20% issue:of own funds, reinvestall profits and seek have access no access to value-adding to smart financing investorsaccess to smart capitalNetworking 35% issues:Most entrepreneurs attend more than • low share 3 events per year of international participants1-2attend minimum • lack of proper networking relevant events during the event annually35% most effective issue:want to add talent personalrecruiting channel: mentality of candidatesin their IT team network 31 of entrepreneur

Detailed resultsBusiness Mentoring From whom do you receive guidance for your company? 47% Other entrepreneurs/mentors 27% No one 20% Professional business consultants 20% Investors 16% Organizations (incubators, mentor networks, etc.) Which are the main difficulties in seeking business guidance in the Greek market? No guidance sought yet 25% No difficulties 22% No access to suitable individuals 16% No suitable individuals to guide me 13% I cannot afford it 13% No need for guidance 2%Financing Which are the main funding sources of your company? 76% Own funds 36% Profit reinvestment 20% Investors (VCs/Angel/Funds) 20% Loans 16% Family & Friends Subsidies 11% Which are the main difficulties in raising funds? 36% No available bank loans 36% Available investors but no access to them 20% Available investors with no added value 18% No difficulties 14% No investors No need for funding 11% No business plan/I do not know how to access them 2%Presence in International Markets In which geographical areas does your company operate today? Greece 91% West/North Europe 49% Balkans 34% Cyprus 29% USA 29% East Europe/Russia 25% Turkey/Middle East 22% Asia 20% Latin America 11% Which geographical areas will you target in the next three years? West/North Europe 47% USA 45% Asia 38% Turkey/Middle East 33% East Europe/Russia 25% Latin America 22% Greece 20% Cyprus 20% Balkans 20% What percentage of your current revenue comes from Greece? <25% 34% 75% - 99% 29% 100% 16% 50% - 74% 11% 25% - 49% 9%

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAY Which are your company’s main obstacles for selling products/services abroad? Lack of funds/high entry cost 49% Lack of local partnerships 44% Lack of market knowledge/entry strategy 29% Competition in the target-market 20% Negative image of Greece abroad 16% No obstacles 11% My company does not target foreign markets 7% Do you consider moving your headquarters abroad? 49% No 27% Yes – only the headquarters, not the operations 14% The headquarters are already abroad Yes – both the headquarters and operations 5% Which would be the main reason to move headquarters abroad? Unstable tax system 29% Lack of business opportunities/synergies 20% Easier funding 18% Lack of State support and incentives 16% Greece’s negative image abroad 5%Networking Do you participate in networking events/conferences/contests related to entrepreneurship in Greece? 1-2 events annually 42% More than 5 events annually 22% Lack of knowledge for suitable events 14% 3-5 events annually 13% No participation/No interest in networking 9% What is the main disadvantage of events/conferences related to entrepreneurship in your sector? No networking 33% No participation of foreign companies 27% No interest/limited attendance 20% Limited number of events 9% High participation fee 5%Skills & Recruitment In which positions do you seek employees for your company? Sales 54% IT 33% Business Development 22% No employees needed at this period 18% Engineers 18% Marketing 14% Operations/Logistics 14% Accounting/Finance 13% Strategy 5% HR 2% Which is the most effective way to find executives? 58% Recommendations/personal network 20% Business Networks (eg. LinkedIn) Job posts 11% Headhunters 7% University Career Offices 2% Which is the main difficulty in recruitment? 40% No candidates with the proper mentality 20% No candidates with sufficient experience 13% High financial requirements 13% Candidates prefer more established companies No candidates with sufficient knowledge 4% 33

6 THE VIEW OF INVESTORS AND OTHER STAKEHOLDERSIn creating a holistic understanding of the 2. Entrepreneurs are praised for theirGreek entrepreneurs’ strengths and develop-ment needs, it is important to also consider commitment, aspiration and strong academicthe perspective of the organizations thathave been established to serve them as po- background; weaknesses are observedtential investors, mentors, or supporters.What do the executives in Greece’s leading mainly with regards to their limited businessinvestment funds, incubators, accelerators, experience, their ability to execute and theirco-working spaces and other organizations general openness to feedback.say about the entrepreneurs and the venturesthey assess? By surveying them, we get to 4 3. Business ideas and ventures aremain conclusions: praised for their innovation, but there are1. Issue with overall quality rather issues with regards to the clarity/focus of thethan quantity of ventures: 50% of underlying business plan, the monetization model and the future competitiveness of thethe organizations believe there is an issue assessed ventures.with the overall quality of the ventures theyassess; in general the amount of incoming re- 4. Support should primarily focusquests seems to be sufficient, but the qualityis lower than expected. on business plan finetuning, networking at an international rather than on a local level, and ongoing support and guidance to help achieve strategic aspirations.50%of organizations face issues with quality of venturesStrengths: Weaknesses:commitment, aspiration, business experience, execution,academic background, openness to feedback,innovation clarity of business plan, monetization, competitiveness

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYDetailed resultsEntreprenurs Deal Flow Is there sufficient flow of high quality ventures? 40% Overall, there is sufficient flow 20% but the quality is lower than expected 10% Overall, there is sufficient flow and the quality is high 10% Overall, there is low flow of ventures, but of high quality Both the flow and the quality of projects are problematic What are the key areas of strength in the entrepreneurs that you evaluate? Commitment 80% Aspiration / Vision 40% Academic Background 30% Business Experience 20% Leadership Skills 10% Openness to Feedback 10% Integrity 10% What are the key areas of weakness in the entrepreneurs that you evaluate? Ability to Execute 60% Business Experience 50% Commitment / Motivation 40% Openness to Feedback 40% Leadership Skills 20% Aspiration / Vision 10% Role-Model Potential 10% Integrity 10%Business What are the key areas of strength in the business ideas/ventures that you evaluate? Innovation 50% Clarity / Focus of Business Plan / Strategy 30% Clarity of Monetization Model 30% Revenue Potential 30% Length of Payback Period / Clarity of Exit Strategy 10% Degree of Competitive Advantage 10% What are the key areas of weakness in the business ideas/ventures that you evaluate? Clarity / Focus of Business Plan / Strategy 60% Clarity of Monetization Model 50% Degree of Competitive advantage 50% Innovation 30% Revenue Potential 20% Length of Payback Period / Clarity of Exit Strategy 20%Needs Beyond funding, what are the basic needs of the ventures that you evaluate? Mentoring 80% Business Plan Preparation 70% Networking Internationally 70% Networking in Greece 20% HR - Hiring Key Staff 20% Support Services (e.g., space, legal) 10% 35

7 NOT YET AN ECOSYSTEMIn response to – and further fueling - the varying levels of support provided to the in-attractiveness of entrepreneurship in Greece, cubated concepts; there have been attempts by the State or quasi-State institutions tomore than 55 institutions have been develop own incubator facilities, but with low success to-date.recently set up in the country, either as localsubsidiaries of international organizations or • Four recent VC vehicles with availableas domestically developed schemes. Just capital in excess of EUR 80 million, backed bythree years ago, 95% of them were EU funds (EIF/Jeremie), with primary focusnon-existent, demonstrating the grow- on ICT ventures; limited number of angel investors, one ICT-focused crowdsourcing anding power of entrepreneurship as a trend. one seed capital scheme in progress; increa-Despite their weaknesses and gaps, these sing number of international funds exploring opportunities across sectors, however of aplayers represent the version 1 of a broader larger size.entrepreneurial landscape, which should be • High number of co-working spaces,built to address the core needs of entrepre-neurs– knowledge/skills, networking, and demonstrating early signs of consolidation,funding – across sectors and stages, and also with main focus on ICT and increasingly onserve as inspiration for a new generation of social entrepreneurship.entrepreneurs. • High number of events, serving as inspira-This entrepreneurial landscape serves as agreat start, though it still lacks many ele- tion for local youth, but also addressing thements of a proper ecosystem. More specifi- need to project a new or different image ofcally, the current landscape involves: Greece, based on creativity, extroversion and innovation.• Multiple one-off awards and competi-tions, though these tend to focus on ICT at • Sporadic examples of bright academics inthe expense of other sectors, and many fail to public education system organizing efforts toproperly follow up after the event. promote and support entrepreneurship, typi- cally based on individual drive, rather than• High fragmentation in incubators/ac- institutional support; inability of the broadercelerators which are often backed by large public university system to follow with largely failed implementation of EU-funded innovationplayers of the ICT, financial or telecom sector;efforts focusing mainly on ICT ventures, withemerging but still low representation of othersectors (e.g., tourism, agri&food, energy) and>55institutions 95% set up to support entrepreneurs

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYprograms on campus; promising efforts and working, more high-quality events with inter-effective programs from private players across national participation and practical support tostages (secondary and tertiary education), with access international markets.involvement of entrepreneurs from the privatesector. Addressing these gaps will bring the entrepre-Most of the above characteristics are common neurial landscape closer to a more effectivewhen a new entrepreneurial landscape is being and complete version 2. This new version,formed. Others are indicative of the global trendthat drives big corporations and State players to still on a way towards a proper ecosystem, willpromote entrepreneurship as CSR or a political most probably involve:tool. As a result, one can observe congestion incertain areas (e.g., awards, incubators/accele- • Consolidation or scale-up of existingrators), excess focus on early-stage ICT and lackof continuity between events and among players. players within certain areas (e.g., in co-working spaces, or accelerators). This will allow them toMost importantly, there is a clear ‘supply and achieve larger size, improve product offeringdemand’ imbalance, meaning that the sup- and thus attract high quality candidates, through international networks and access to high levelporting organizations tend to have more capacity mentor and investor pools.than what existing ventures can satisfy. This isreflected both in our survey results (issues with • New players or expanded focus of existingquality of ventures) and in the structure of theentrepreneurial community itself, which often players to cover gaps in sectors and growthsees the same group of candidates/participants stages (pre-revenue, scale-up, maturity), as welljoining the various events organized. as niche areas such as social entrepreneurship.At the same time, there are gaps both in sectors • Cooperation and partnerships between areas(e.g., tourism, energy, food) and in growth stages(e.g., more mature companies) that are not suf- to ensure full spectrum and continuity of support.ficiently addressed by existing players; there isclear need for improvement also in the servicing • Selected investments by international funds,itself, which – as discussed – needs to be furtherenhanced with more and more knowledgeable mainly on later stage companies; significant an-mentors in certain sectors, international net- gel to Series A financing to be channeled through local players and VCs. • Channeling of corporate or State-driven initia- tives and underlying budget through a selected set of existing players rather than pursuing own facilities and infrastructure.of them >80€launched in the last 3 years million of available capital 37

• Expanded community of existing and • More active involvement of Greek dias- pora, mainly through efforts such as Theaspiring entrepreneurs, with more and moresuccessful business leaders, emergence of Hellenic Initiative.real role models and calibration of what atrue success story looks like. • Partnerships between players to form pub- lic policy groups that will push through• More active role of educational institu-tions, via private sector schools/colleges necessary reforms and policy adjustments.and selected academics in the public sector; Changes in the current entrepreneurialas a whole, public education system is ex- landscape in Greece are pretty fast; theypected to maintain its inability to keep pace. are actually already observed and the new version is expected to take shape within theExamplesof entrepreneurship-related organizations in Greece Idea Product AwardsFinance Funds NetworkKnowledgeInspiration

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYnext 12-18 months. In short, it will be based events will further grow in size and importance to serve as platform that provides inspiration in anon fewer and larger players, who selectively international context.choose to work together or with internationalpartners to improve their effectiveness and abi- This bottom-up approach, rather than a set oflity to attract high quality candidates, mentors/ top-down, fragmented or one-off efforts, appearsinvestors and sponsors. These players will need to be the most effective in establishing long-to focus on offering as much support as possible term growth and job creation; in bringing aboutto a selected set of high-impact entrepreneurs, change and reforms, fighting the State’s inabilitywho will in turn be able to grow in revenues and or unwillingness to implement them; and mostjobs, become role models and inspire countless importantly in driving inspiration and healthyothers. In communicating these success stories role models in a sustainable and replicable way.and multiplying their effect, a small number ofEarly Revenue Scale-up Mature 39

WRAPPING-UPGreece has always exhibited strong ten- On a positive note, there is a 10% of new ven-dency towards entrepreneurship tures that are indeed focusing on the proper growth areas, up from 7% a few years ago.with very high number of businesses per Out of these ventures, 1% can be characte-capita. rized as truly high-impact, in the sense that they have the potential to grow in jobs andHowever, many of these businesses have revenues more effectively than peers; even ifbeen subscale, unproductive and focusing this 1/1000 may sound trivial,on consumption-driven sectors with low it still corresponds to 40 new high im-growth potential. Entrepreneurship has pact ventures per year that canbeen often associated with corruption make the difference in triggeringand typically hindered by State’s bureaucracy growth and job creation.and informality: not an attractive career op-tion for most of Greece’s brightest minds. These high-impact entrepreneurs go after opportunities that are structuralAt the beginning of the crisis, the percep- in Greece or have emerged du-tion of entrepreneurship started to change; ring the crisis: in sectors where Greecethe need to restore growth through entrep-reneurship became critical, potential was exhibits competitive advantage (e.g., food,identified in various sectors and, in lack of tourism) or which go through radical restruc-career alternatives, entrepreneurship was turing (e.g., financial services, energy); and inconsidered the way forward for Greece. A individual assets that represent good invest-number of new institutions were established ment options for restructuring/financing or are driven by international trends.and entrepreneurship became a‘hot’ discussion topic in Greek web Across sectors, there are many and specific opportunities to be captured; some of themand media. are already being addressed by the high- impact entrepreneurs who are already seizingUnfortunately, this wide discussion about en-trepreneurship has not yet translated into an the potential. These entrepreneurs andactual entrepreneurial boom of large scale. their ventures represent attrac- tive investment options for local butApproximately 90% of new ven-tures all over Greece still follow also international investors.the logic of the failed growthmodel of the past.

ENTREPRENEURSHIP AND INVESTMENT OPPORTUNITIES IN GREECE TODAYHow do these Greek high-impact entrepre- weaknesses; they are not happy with the overall quality of ventures;neurs look like? Not that much likethe stereotype of the Silicon Valley they want to see clearer business plans and monetization models; and also more experi-Zuckerberg; they tend to be slightly older enced entrepreneurs, with higher ability toand have solid business experience. They execute and more open to feedback.have international exposure and start theircompanies to capture an opportunity rather All in all, it becomes clear that a large scalethan by lack of alternatives. They have never entrepreneurial boom has not yet materia-been part of the core public sector; they are lized; nor we are yet in an ‘ecosystem’ thatextroverted, pursue alternative sources of properly nurtures and supports entrepre-financing and understand the importance ofmentoring and networking; they expand their neurship; we are still in version 1 ofbusiness and seek high quality resourcesmainly in sales and IT. Greek entrepreneurship. With some but not enough high impact entrepreneurs that needThese high impact entrepreneurs ask for support, with many supporting institutions and events, often addressing and recyclingsupport in accessing the right partners in the same limited audience, but not always providing the proper assistance or coveringthe international markets and understanding the full range of sectors, maturity stages orhow these markets operate; also in accessing entrepreneur types.proper networking events with internationalparticipation; and of course in accessing the We are very close to the version 2 of thisproper mentors that may be available (e.g., infood) or not available (e.g., in ICT) in Greece. landscape, hopefully with more solidFinally, they need access to a wider range of entrepreneurial cases, more successfunding options; they already explore them,but need further help and guidance in doing so. stories in Greece and internationally, wider representation of sectors, more targeted sup-The investors and the institutions that sup- porting institutions with more open menta-port entrepreneurs tend to agree with all of lity and spirit of collaboration to cover the fullthe above. They acknowledge the creativity ‘heat-map’ of entrepreneurship.and innovation of the business ventures theyassess and praise the strong academic back- We are not there yet; but we are soonground, the commitment and aspiration of getting there.the entrepreneurs. They also spot 41