During a recent fireside chat on unlocking capital for Greek and Cypriot enterprises, one message stood out clearly: what brought SMEs to today’s success will not necessarily carry them into their next phase of growth.
Profitability, asset collateral, personal guarantees, and long-standing banking relationships were once enough. I still recall the classic question when assessing bankability: “What collateral do you have?” Today, the rules have changed.
The State of Play in Greece
Greek SMEs remain the backbone of the economy – family-owned, resilient, and tested through years of crisis. Yet studies show that more than one-third face structural, liquidity, or governance challenges, and many struggle to secure the growth capital they need.
Financiers no longer fund profitability alone. And while many SMEs still favor debt over equity—often prioritizing control and familiarity—relying solely on debt can restrict long-term growth, as it does not provide strategic support, risk-sharing, or access to external expertise.
As technological disruption, new regulations, and sustainability pressures reshape investor expectations, Greek businesses must adapt. From public-sector institutions we increasingly expect the need for fit-for-purpose financial instruments and professional intermediaries that can translate business needs into bankable, investment-ready opportunities.
A Broader Spectrum of Capital
Greece now has access to a far wider spectrum of financing vehicles than in the past. Beyond traditional bank lending, SMEs can tap into: Private equity, Private credit, Blended finance instruments and Public–private partnerships (PPPs).
These mechanisms significantly expand the funding palette, offering not only capital but also strategic insight, risk-sharing, and operational expertise. Used effectively, they can accelerate transformation and enable sustainable scale-up. Strong project preparation and targeted technical assistance remain essential to unlocking these funding options.
While our focus is SMEs, it’s worth noting that public–private partnerships (PPPs) are key in mobilizing private capital for large-scale infrastructure. The transitions demanded by today’s megatrends require substantial infrastructure investment—much of which can be mobilized through structures that leverage private capital. Because public contributions typically occur at later project stages, these models can also deliver positive fiscal outcomes. Still, public entities remain unjustifiably shy about using these tools, despite their clear benefits.
The Governance Imperative
New regulatory frameworks—including the EU’s CSRD and SFDR—are transforming how companies are assessed. Today, lenders and investors focus on:
· Credible business plans (more than ever)
· Sustainability practices (carbon emissions, energy efficiency, labor practices, waste management)
· Governance transparency, risk management, and internal controls
Companies with robust ESG systems and transparent reporting reduce perceived risk and gain access to more affordable, diversified funding. Governance, internal controls, and verified ESG data are becoming a new form of collateral.
With the right advisory support, ESG becomes a strategic enabler, rather than a regulatory burden.
Conclusion
Greek SMEs have already proven their resilience. To unlock the next level of growth, they must evolve:
1. Strengthen governance and risk management systems aligned with market expectations
2. Integrate ESG into corporate strategy, not only reporting
3. Leverage experienced advisors who can bridge business models with both public and private capital while helping build robust internal control frameworks
4. Embrace transparency and structured processes, recognizing that traditional practices alone will not drive future growth
What got them here won’t get them there
Internal infrastructure, high-quality ESG data, and reliable verification are increasingly acting as “new collateral”- lowering perceived risk and opening access to private capital. With the right structures, transparency, and strategic use of diverse capital sources, SMEs – and public-sector entities preparing major investment programs in the years ahead – can build trust, attract investment, and create long-term value.
photo credit: Olga Tzimou
Thank you note to the organisers DDC Financial Group
