HOW STATE AID DURING THE PANDEMIC AFFECTED BUSINESSES – ENTREPRENEURIAL VIEWS FROM GREECE

Abstract

State aid programs employed in several countries to support businesses during the recent coronavirus disease pandemic are coming under examination with an eye to understand if they worked well or not. The paper analyzes the views and assessments of entrepreneurs about the actions of the state aid program put in place in Greece (the program consisted of 28 actions) with respect to: (a) the preservation of jobs, (b) the creation of new jobs, (c) the adjustment of businesses to the pandemic conditions, (d) business continuity during the pandemic, and (e) business resilience. In particular, the paper econometrically estimates the impact of sectoral, regional and other factors and reports the results. It finds that a number of state aid actions are thought to have affected some of the aspects under items (a)-(e) more than other actions did, so perhaps they ought to be considered and employed if similar business support plans are needed in the future.