The impact of inflation on SMEs: Evidence from a survey on Greek SMEs

Abstract

Based on Kalecki’s theory of the dichotomy of market structure we focus on the different impacts of inflation on firms with asymmetric market power. Using a questionnaire survey, we measure the impact of the recent inflationary crisis on Greek SMEs’ performance and the strategies they adopted to survive. Our results indicate a dualism regarding the impact of inflation, between small and large firms and between exporting and non-exporting firms. Our findings suggest that high inflation reinforces market concentration trends, leading to an increase in regional disparities.