Women's Cooperatives in less favored and mountainous areas under economic instability

Abstract

1. IntroductionThe last years, within the economic instability, the Greek economy faced severe problems that affected all macroeconomic indices. The country's Gross Domestic Product (GDP) during the period 2008-2013 was reduced by 23%, while the domestic demand reduction reached 31%. For the period 2010-2013 unemployment has been increased by 18,6%, while productivity has been reduced by 6,5% for the period 20082013 (INE, 2013; Eurostat, 2013). Generally, the Greek economy the last years runs into economic instability with all financial indices, apart from GDP and employment, presenting negative trends (Hellenic Statistical Authority, 2015; Rakopoulos, 2015; КЕПЕ, 2016; Mattas and Loizou, 2013). Within this environment of instability the Greek Small and Medium-sized Enterprises (SME's) were among the victims that affected significantly; issues such as liquidity constraints and reduction in their turnover made difficult and insecure their operation. Six out of ten enterprises recorded profit decrease in 2011 compared to 2010, whereas 150.000 jobs were lost (European Commission, 2012). The domestic entrepreneurship continuously deteriorates and the earlystage entrepreneurship index reached its lowest rate in a period of five years, i.e. 5.3% from 8.8% in 2009; while in the same period the potential entrepreneurs diminished up to 2% compared to 4.5% in 2009 (IOBE, 2012).The Greek rural areas host more than 43% of the total population of the country (European Commission, 2012); among those areas the mountainous and less favored areas also encounter the effects of the economic crisis, at least to the same extent as the urban areas (Kontogeorgos et al., 2014). The economic crisis and instability affect them significantly despite the fact that during the last 20 years, with the funds of the European policies mainly through agro tourism demonstrate a positive development. Today, the dramatic increase of unemployment and the significant reduction of the internal demand and consumption caused important consequences in the development of local entrepreneurship and in the domestic tourism, affecting the growth of the local economies (Hellstat, 2015; КЕПЕ, 2016).Among the actions that supported significantly by EU policies in rural areas were the women's cooperatives. Thus, since 1990 a flourish was observed in the creation of women's cooperatives in the Greek countryside (Gidarakou, 1999; Iakovidou, 2002; Koutsou et al, 2003; Lassithiotaki and Roubakou, 2014). Even today, women's cooperatives represent the main form of female entrepreneurship at local level. Through the cooperatives activities women business potentials were improved and their role and position in small rural communities' was recognized. However, the women's cooperatives, despite their contribution to the development of local economies, run into great difficulties and operational problems. These problems seems to be maximized the last years with the economic instability, as the internal demand for touristic services and leisure activities were reduced substantially (69%, between 2008-2013) along with final consumption expenditures (IOBE-SETE, 2012; SETE, 2015).Following this context the aim of the present paper is to depict the viability potentials of very small women's cooperatives that operate in mountainous and less favored Greek areas, under the current economic instability. It is examined weather factors related to the economic crisis affected their financial situation and viability. This aim is examined through mainly a presentation and analysis of financial data of the last years. In addition, the paper aims to investigate the recognition and appreciation of the role of these cooperatives by young people in the local communities and their support as an alternative source of income. The study presents next the evolution of the rural development policy and especially in the mountainous and less favored areas and the characteristics of the women's entrepreneurship and cooperatives in the rural areas. …