ABSTRACT

In Greece (the country from which I draw my empirical material) as in so many other countries, most economists and State authorities consider so-called informal business practices an abomination that restricts the country’s growth and development.1 Whether this is true or not, I am more interested in showing that the continuing reproduction of very small (‘micro’) and small manufacturing businesses, which the European Union (EU) perceives as a key locus of new employment (European Commission 1994, pp. 93-94; European Commission 1995, p. 3), depends to a very substantial extent on the widespread prevalence of informal practices. In particular, I would claim that the setting up of independent very small enterprises is premised on the support provided by informal support networks of close relatives, workmates, friends, ex-bosses, suppliers and even clients, in addition to the support offered by acquaintances sharing the same neighbourhood or village background. This is support given to working-class agents when they attempt to set themselves up as independent business proprietors in manufacturing. The support being informal means that at this level such networks do not enjoy an

* Parts of an earlier version of this paper have been presented at the following conferences: EKKE-SEK Conference on ‘Social Developments in Contemporary Greece and Europe’, Panteion University, Athens 24-26 May 2001; Fifth Conference of the European Sociological Association (Economic Sociology Research Network) - ‘Visions and Divisions’, University of Helsinki, 28 Aug. - 1 Sept. 2001; Work, Employment & Society Conference on ‘Winning and Losing in the New Economy’, at the University of Nottingham, 1 1 - 1 3 Sept. 2001. I would like to thank the conference participants for comments received. Also, I am most grateful to Roe Panagiotopoulou for her critique. 1 In the particular context, ‘informal’ refers to various undeclared economic practices that evade registration. Of course, non-registration means that they remain untaxed and are beyond State control and supervision.