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COVID-19 EU PolicyWatch

Database of national-level responses

Eurofound's COVID-19 EU PolicyWatch collates information on the responses of government and social partners to the crisis, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for case GR-2021-9/1996 – measures in Greece

SME subsidy for the development of online e-retail

e-λιανικό – Epihorigisi ifistamenon MME toy lianemporiou gia tin anaptixi ilektronikou katastimatos

Country Greece , applies nationwide
Time period Temporary, 22 February 2021 – 29 September 2021
Type Other initiatives or policies
Category Supporting businesses to stay afloat
– Direct subsidies (full or partial)
Author Penny Georgiadou (INE GSEE)
Case created 05 August 2021 (updated 09 August 2021)

Background information

The Ministry of Development & Investment launched in February 2021 the programme "E-retail: Subsidy of existing SMEs in the retail sector, for developing, upgrading and managing online store".

The action subsidies SMEs in the retail sector in order to develop, upgrade and manage online stores (e-shop) for supporting their operation during the pandemic (COVID-19), strengthening the degree of their integration into the digital technology and supporting their digital transformation, as well avoiding overcrowding within stores during the pandemic.

Content of measure

According to the requirements of the “e-retail” programme (both rounds):

  • Beneficiaries of the financial support are medium, small and very small companies in the retail sector, that maintain a physical store (at a separate area of their home) regardless of their legal form and operate legally in the country.
  • The companies are divided into two categories: a) the operating ones, those that have been established until 30 September 2019 and b) the newly established ones, those that have been established after 1 October 2019.
  • The grant is up to €5,000 to each company for the purchasing of IT equipment, as well as software and services, in order to develop and manage an online store.
  • For upgrading an online store (in the case that the company already run it), the grant is up to €1,500.
  • The Financing Application must be submitted electronically on the platform of the State Aid Information System www.ependyseis.gr/mis.
  • The eligible expenses concern: purchasing IT equipment (only for new online stores and up to 30% of the budget); servers for hosting electronic applications, its accompanying components (keyboards, screen, etc.); the required operating system, computers (desktop / laptop) and other technological equipment related to the creation / upgrading and operation of an e-shop (i.e. network equipment, bar code readers, printers, etc.); software, e-shop design, development and management e -shop services (in two languages ) and in a mobile device environment ; development and / or certification of digital security policy.

The Action Budget is €80 million. The application period is from 22 February 2021 to six April 2021.The great success of the program led the government to announce a second round of the programme on June 25, 2021.

The second round has a budget of €8 million and the application period is from nine July 2021 to 29 September 2021.

The Action is co-financed by the European Regional Development Fund (ERDF) and from national resources.

Use of measure

Until 6 April 2021, 11,503 applications were submitted for participation in programme, covering a budget of €53.6 million out of the total €80 million originally announced. The 11,200 applications concern the development of e-shops by very small companies with a physical store, while the retail activities that gathered the greatest demand were from the sectors of clothing, footwear, women's ready-made clothes, jewelry, etc.

The Ministry of Development & Investment, after the great interest of the first round, planned the announcement of a second round in April 2021, in order to cover the rest of the budget.

The Deputy Minister of Development and Investment, Giannis Tsakiris stated in this occasion: "In the difficult period of the pandemic, we help that the retail to gain access to the e-sales channel, with a simplified action of the NSRF. It is a given that, in the near future, the growing trend of e-shopping will continue and we must accelerate the digital transformation of our businesses, in order to improve their resilience to consumer demands.

Target groups

Workers Businesses Citizens
Does not apply to workers Sector specific set of companies
SMEs
Does not apply to citizens

Actors and funding

Actors Funding
Company / Companies
European Funds
National funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role No involvement No involvement
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • No involvement
  • Main level of involvement: N/A

Involvement

There is no involvement of social partners.

Views and reactions

There are no social partner's reactions to the measure.

Sectors and occupations

    • Economic area Sector (NACE level 2)
      G - Wholesale And Retail Trade; Repair Of Motor Vehicles And Motorcycles G47 Retail trade, except of motor vehicles and motorcycles

This case is not occupation-specific.

Sources

  • 08 April 2021: Completed with 11,503 applications the Action "e-retail" - Pre-announcement of the 2nd Circle (Oloklirothike me 11.503 aitisis i drasi “e-lianiko” – proanaggelia B' kiklou (galanosengineering.gr)
  • 25 June 2021: “e-retail” - Subsidy of existing retail SMEs for the development of online store 2nd Circle (e-λιανικό – Epihorigisi ifistamenon MME toy lianemporiou gia tin anaptixi ilektronikou katastimatos (B' Kiklos) (www.antagonistikotita.gr)
  • 22 August 2021: “e-retail” - Subsidy of existing retail SMEs for the development of online store (e-λιανικό – Epihorigisi ifistamenon MME toy lianemporiou gia tin anaptixi ilektronikou katastimaton) (www.espa.gr)

Citation

Eurofound (2021), SME subsidy for the development of online e-retail, case GR-2021-9/1996 (measures in Greece), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch

Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.