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Small and medium sized agro-enterprises can play a critical role in creating rural income and employment opportunities, through the demand they create for raw material supplies, such as milk. In addition, small and medium sized enterprises are responsible for generating a significant share of products and services in the agricultural sector. Moreover they can create income and employment in rural areas where the opportunities for employment are in shortage. However, there are major constraints that must be addressed in order to realize the full developmental potential of SMEs. These constraints are getting more severe, as the economic crisis in Greece is still undergoing.This paper conducts a strategic assessment of the Greek small and medium dairy and cheese enterprises in the area of Thessaly (Central Greece) in order to illustrate how they have responded to the economic crisis and also to investigate their strategic orientation for the next period. For this reason, a qualitative research has been carried out during the first half of 2013 using in depth interviews with SME executives in order to illustrate their financial situation and their reaction to the crisis. The key issues facing SMEs are, in general, how to survive, how to develop, how to be competitive, and what are the market challenges. An improved understanding of these challenges, strategies and priorities for SME– as perceived by their managers – can help SME not only cope with the economic crisis but also to help them to expand and establish their role in the local economy. SMEs that are appropriately capitalized and managed can produce high quality branded and labeled products, which can create added value for the agricultural products, increase revenues and even more to create export revenues. Thus, the results’ analysis could provide helpful directions not only for the Greek SME in the dairy and cheese sector but also for food businesses operating under a severe economic situation such as the Greek economic crisis.
Key words: Small and Medium Size enterprises, Dairy Sector, Strategic -Management, Economic crisis
JEL Classification: L21, L26, M00
