Service Operations of Indian & European Startups

Chapter 1

 Introduction

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Fig 1.1: The Share of Services in GDP

Figure 1.1 shows the share of services in the GDP of countries around the world. In which the highlighted (on the map Violet highlighted areas shows 60% or more, Blue highlighted areas shows 50-59%, Green highlighted areas shows 40-49%, Orange highlighted areas shows 30-39%, Yellow area shows less than 30% and for Grey area data is not available as these are either very remote areas or not yet explored by human habitat) areas denotes the contribution of GDP by services in the country’s economy. 

Economic Structure of Greece: Primary Sector

Like all other European countries the primary sector of Greece is the service sector. With tourism at the top, all other sectors are dominated by the service sector in terms of contribution to the GDP. According to the 2014 data, Greece service sector has contributed almost 75.8 % to the country’s GDP and has employed 65.1% of the total workforce. Service sector includes professionals, such as public administration, telecommunications, hotel & lodging industry, street vendors etc.

Economic Structure of Greece: Secondary Sector

20.8% of the national GDP has been contributed by the industry sector and employs 22.4% of the country’s workforce. As Greece is a mountainous region, Athens is the only city with Seaports, Flat lands and maximum concentration of industries. It is also been called as gateway to European Union, the reasons vary from connectivity to ease of transportation. The various Greek industries include Olive farming, mining, petroleum products, tobacco farming processing, metal manufacturing and allied products, cotton and textiles industries and chemicals.

Economic Structure of Greece: Tertiary Sector

3.4% to the GDP is contributed by the agriculture sector and absorbs 12.4% of the workforce. However, due to abundance of mountains in the region and shortage of natural resources required for mining, faming and cultivation, Greece is unable to increase its production volume and hence they are unable to export most of the products in order to earn revenues. The main agricultural products are Olive, Corn, Cotton, Wheat, beef, barley, potatoes, sugar beets, wine, tobacco, tomatoes, and dairy products. Out of all agricultural products, olive farming is the topmost contributor to national export although Greece is not famous for the Olives as the same is exported to Italy & France for further processing and manufacturing of the end product. However increasing unemployment is the worrying concern for all sectors, which according to the 2013 data is 24%. Even more troubling are the least FDIs & Other Investments as they do not see any substantial growth in it. In 2009, the investments were measured to be as low as 15.6% further in 2013 the same has fallen to 12% of the GDP.