The Deliverable 3.3.1 is entitled “Report on sources of funding for the development and implementation of new business and exports activities in Greece” and it was developed by Gnosi Anaptixiaki NGO (PB3) under the Work Package 3 “Documentation” in the framework of the project: Development of a Creative Hub for offering support to fashion graduates, young artists start-ups and development mechanisms to the fashion sector of the cross-border area (CREATIVE HUB).

It concerns an identification of the sources of funding that can be used for the development and implementation of new business and exports activities in Greece. Funding for businesses, regardless of size and industry, can come from a variety of sources. These can generally be grouped into Internal and External sources of funding. Funding from internal sources usually concerns only the early stage of setting up and growing a business, i.e., it is limited to a short period of time.

In recent decades due to the increase in the number of businesses, and subsequently the creation of a competitive environment, the need has arisen to improve the product offered, to improve the speed of production, and to expand the business. For this reason, new alternative forms of funding were sought. This has led the banking institutions to continuously improve their services, to meet the above needs.

At the same time in the European Union special interest has been given to the support, development and funding (subsidies, loans, guarantees, etc.) of businesses. The EU with targeted actions, development initiatives and programs direct, through grants, and indirect funding through national and local intermediaries contributes to the competitiveness of businesses (subsidies, loans, guarantees). The importance of business financing stems from the fact that supporting businesses, either in the form of financing or rewarding innovative ideas or goals, either facilitating their operation through the repeal of restrictive measures and laws, are Europe’s goals for the integrated market. Through opportunities and incentives for businesses, growth, competitiveness, stimulating entrepreneurship and innovation for the whole of Europe and, of course, job creation and wealth creation are achieved.

Greece, in turn, has launched the implementation of a number of financial tools in order to achieve the optimal utilization of available public resources with other available financial sources. Today, however, the problem of funding remains for Greek businesses, as the cost of borrowing is still more expensive compared to large businesses, mainly due to the increased risk, lack of collateral and the limited capital base of banks.

In this view, this report analyzes this financial information so it can help choose the best among the various financial alternatives for the future activity of a business. Its main contents include a description of the main forms of funding such as personal funds, bank loans, franchising and crowdfunding.