Dorita Yiannakou
Between armed conflicts, geopolitical developments, a prolonged energy crisis and constant shifts in the global economy, running a business in Cyprus is becoming increasingly difficult. Amid growing uncertainty, businesses are under intense pressure: operating costs remain high, finding staff is a persistent challenge, and bureaucracy continues to consume valuable time and resources.
These difficulties affect more than startups and those taking their first steps in the market. Established businesses also face an exceptionally demanding environment. For many owners, daily life has become a constant struggle to keep their businesses viable. They must balance the need to contain costs with the obligation to maintain the quality of their products or services, meet market demands and remain competitive. Meanwhile, uncertainty makes long-term planning harder. Decisions about new investments, expansion or recruitment require greater caution and a more rigorous assessment of risk.
Succession in family businesses is another thorny issue. For decades, many of these firms formed the backbone of the Cypriot economy, creating jobs, supporting local communities and passing down expertise, experience and an entrepreneurial culture from one generation to the next. Today, however, the continuation of that tradition can no longer be taken for granted.
Younger generations must decide whether to take over businesses built by their parents or grandparents in circumstances very different from those their predecessors faced. The market is more demanding, operating costs are higher, competition is fiercer and the need to modernize is greater. It is hardly surprising that many second- and third-generation business owners choose to close their family firms, fearing both failure and the struggle to keep them financially viable.
For aspiring entrepreneurs, the decision to start a business and build something of their own from scratch is even harder today. Starting a business requires capital, planning, market knowledge, access to networks of partners and, above all, the ability to survive a period when income may not yet cover expenses.
Administrative burdens compound the financial difficulties. At the same time, businesses face a succession of external challenges with far-reaching consequences. Armed conflicts, inflation, energy instability, supply chain disruptions, high interest rates, climate change and technological upheaval are making an already difficult situation increasingly challenging.
Government incentives are needed, along with more practical support from the country’s business organizations. The future of business is directly tied to job creation, income generation, the introduction of new products and services, stronger competition and a broader productive base for the economy.
Cyprus needs to create an environment in which entrepreneurship is a realistic option for people with ideas, a willingness to work and the potential to grow, rather than a relentless test of endurance.
Of course, in an international environment marked by instability and constant change, Cyprus cannot control every external development. It can, however, create better conditions for businesses at home.
