| Preserving culture through
small business: Government support for artisans and craftsmen in
Greece Journal of Small Business Management Milwaukee Jan 1999 |
| Authors: | Leo Paul Dana |
|---|---|
| Volume: | 37 |
| Issue: | 1 |
| Pagination: | 90-92 |
| ISSN: | 00472778 |
| Subject Terms: | Rural development Small business Culture Rural development Small business Culture |
| Classification Codes: | 9520: Small businesses 9175: Western Europe 1120: Economic policy & planning |
| Geographic Names: | Greece Greece |
Greece uses small business as a means to preserve cultural tradition. The result of ethnographic field research, this global perspective is about the efforts to promote long-term development of rural, small-scale enterprises in traditional sectors of the Greek economy.
Copyright International Council for Small Business Jan 1999While literature and governments often link entrepreneurship with innovation, Greece uses small husiness as a means to preserve cultural tradition. The result of ethnographic field research, this glo()al perspective is ahout the efforts to promote long-term development of rural, small-scale enterprises in traditional sectors of the Greek economy.
Schumpeter (1911), and many after him, linked entrepreneurship with innovation (Barnard 1949. Baumol 1968; Drucker 1974; and Mintzberg 1973). Governments have also associated entrepreneurial behavior with innovation, and numerous policies have been designed to promote innovation among entrepreneurs. For example, the government department known as Industry, Science and Technology Canada instituted the Manufacturing Productivity Improvement Program to assist innovative entrepreneurs in adopting modern technology. In France, various networks have been established to promote technological innovations, among them the Agences Regionales d'Information Scientifique et Technologie (regional agencies for scientific and technological informatoin) and the Centres Regionaux d'Innovation et de transfert Technologiques (regional centers for innovation and technological transfer).
Similar attempts have heen initiated in newly industrialized countries. In Singapore, for instance, the Small Business Bureau provides a grant for the promotion of technological upgrading (I)ana 1987). Even less-developed nations have developed interest in innovation. As discussed in Dana (199f), an example is the Trust Fund for the Development of Small Industry in Mozambique. Thus, various efforts have focused on encouraging innovation and new technologies within the small business sector.
Although the same is true in Greece, innovative technologies are not the prime concern of the Greek government. Rather, emphasis is placed on assisting artisans and craftsmen. The artisan as an entrepreneur is discussed by Stanworth and Curran (1976), while the craftsman is addressed by Chandler ( 1962), Dunkelberg and Cooper (1982), Filley, House, and Kerr (1976), Smith (1967) and yoon Dunkelberg, and Cooper (1988). The purpose of this article is to illustrate how the artisanal handicraft sector in Greece has been singled out to he given special priority.
The Hellenic Organization for Medium- and Small-Size Enterprises and Handicrafts
The Hellenic Organization for Medium- and Small-Size Enterprises and Handicrafts is commonly referred to by its acronym, EOMMEX. Under the supervision of the Ministry of Industry, Research, Technology and Trade, the organization was created by laws passed in 1977 and amended in 1984 and 1991.
EOMMEX is a non-profit organization funded by the Greek government and by European Union sources. Its activities are dedicated to maintaining an environment favorahle for the long-term development of small-scale entrepreneurs, with special attention being given to handicrafts. Activities include keeping barriers to entry at a minimum and enhancing the economic climate to maximize the probability of success of those doing business in the sector. As well, EOMMEX is actively involved in providing artisans with a wide range of comprehensive services, including training, financial assistance, and marketing. The organization also subsidizes the interest rates on loans to small business owners, and makes available letters of guarantee. EOMMEX employs 650 specialists in Athens and in twentysix regional offices. It also operates offices in Brussels, Frankfurt, and New York, facilitating collaboration with partners abroad. All of its services are provided free of charge.
The Handicraft and Artisan Sector
It is of particular interest for EOMMEX to reinforce the arts and crafts sector while preserving traditional handicraft products. Both artistic and technical assistance are provided, as are the marketing and promotion of handicraft products. In various regions, handicraft centers have been estiblished. Why is the handicraft and artisan sector an essential priority? It is felt that this is a principal feature of national culture, and that preserving the national heritage of Greece is within the framework of the government's cultural policy. Furthermore, being a sector of special importance for a regionally-developing economy, it is felt that this sector is an essential element for regional development, and consequently worthy of special incentives. It is as goal of the government to maintain the rural population in the countryside, and a healthy handicraft sector helps make this possible.
To this end, EOMMEX provides services to train young artisans in various sectors of handicrafts. Its Technical Assistance Department assists with location selection and infrastructure support such as handicraft facilities; it helps secure the prerequisites for applications for regional development programs, and evaluates applications for financing and for granting of subsidies. Technical service even follows up on the acquisition of construction materials.
Handicraft co-operatives are provided with start-up capital, technical assistance, and operating subsidies. Such handicraft units are granted low-interest loans with very favorable terms. There is also a special program for handicrafts development in the countryside. The government provides incentives for regional development as well as financial support to handicrafts workshops. In addition, EOMMEX has specific projects to assist in ceramics, costume jewelry, knitting, lace, micro-sculpture, and the artisanal building of sea vessels.
EOMMEX also owns and operates thirty-one carpet-weaving workshops. As well, it has twelve small daughter companies that sell the products of Greek artisans; among the firms are Hellenic Furniture Centre, Ltd., Hellenic Marble Centre, Ltd., Hellenic Goldsmith and Silversmith Centre, Ltd., and Clay Industry S.A.
Other services provided by EOMMEX include the photographing and drawing of traditional and contemporary handicraft products and the maintenance of a photographic archive accessible to the public. Artistic pamphlets and books are prepared and distributed as well. The Training Department organizes educational seminars and international trips for handicraft operators. Artistic and technical advice is provided at these functions. EOMMEX has co-operated with other institutions in erecting laboratories in schools. EOMMEX has also established and operates handicrafts training seminars, which include facilities and showroons for artisanal creations.
EOMMEX also contrilbtes substantially to the marketing of handicrafts. The organization helps plan and improve quality and cost-appraisal for both old and new articles. The Marketing Department provides training in commercial techniques. EOMMEX encourages artisans to participate in commercial fairs and assists interested parties. EO also conducts market research, provides information, advice, and clarification on demand for goods ihr)oad and on exporting to foreign markets. It also provides a matchmaking service, linking Greek artisans with import houses across Europe and America.
The Greek Productivity Centre
Known in Greek by its acronym, ELKEPA, the Greek Productivity Centre is a non-profit organization which works alongside EOMMEX. The "Centre" was registered in Athens in 1953, and has since spread across Greece. Under the supervision of the Ministry of National Economy, it provides consulting services. At the international level, ELKEPA works with the European Centre for Vocational Training; this is facilitated by the fact that the directorates of the European Union assist ELKEPA.
Conclusion
Two problems are addressed by EOMMEX's strategy: (1) selling Greek arts and crafts given the long distribution between Greece and northern Europe; (2) creating a viable option for regional development.
EOMMEX has been quite clever in solving these two possible economic problems, while managing to sustain the richness of Greek culture as well. Other countries might do well to look to Greece as an example of how economic development need not sacrifice tradition, and how entrepreneurship can take time-old craft and keep it viable in this century and into the next millennia. It should be mentioned, however, that vast improvements are still needed, mainly in the bureaucracy and its tax structure; otherwise, growth of the artisanal sector may be stunted. The process of launching a firm is stifled by the amount of paperwork that the entrepreneur must complete within and across the levels of government, and once in operation, an entrepreneur is faced with paying high taxes to sustain a business.
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Leo Paul Dana McGill University, Canada Nanyang Business School, Singapore |