History of Entrepreneurship in Greece
- 1. 1 2nd Lykeion of Arta Activity 1 : Denmark, January 2015 “Τῴ καιρῴ ἐκείνῳ ἒν…” Introduction Entrepreneurship, although the term sounds modern, is not a contemporary manifestation of human activity but as the scripts prove, it’s been a characteristic of humanity since…. forever. If we go back in Greek mythology, when people were trying through it to explain physical phenomena or human behavior, we could undoubtedly refer to Prometheus as the first innovator who ushered the way to entrepreneurship by stealing the fire from Zeus. That way he offered the people the means to begin any kind of business and become independent from divine influence and submission. Rubens: Prometheus stealing the fire from heaven and bringing it to earth by petrus The importance of entrepreneurship for the ancient Greeks is also proven by having a god protector of it, Hermes, the God of Gain.
- 2. 2 Hermes of Praxiteles, the museum of Ancient Olympia Very old times – the Bronze Age (3000-1100 BC) The beginning of entrepreneurial activities can be traced in the depths of history. In 3000 BC, for example, in Mesopotamia trading was really developed and the traders of the time sought innovative ways for the transport of their goods. Though the two rivers, Tigris and Euphrates, are navigable there aren’t fair winds to push the ships upstream, so what they did was to tow the ships from the river banks. Even better, the Armenian traders used light rafts floating on blown animal skins. On every raft there was at least one donkey so when they reached their destination on land, they would load their commodities on the animals and sell the materials their rafts were made of. Mesopotamian rafts The information we get from excavation findings shows that there were distinct rules governing trading, there were credit regulations, loans from bankers and compensations in case of loss or damage. The famous Hammurabi Code gives a good idea of the above. What’s more, testimonials show that in the same time and area we have the appearance of the first “companies” or partnerships.
- 3. 3 At around the same time, contrary to the private initiative that characterized the peoples of the Near East, in Egypt, trading was basically ruled by the Pharaohs. There, the Nile apart from providing them all the goods that were indispensable for the blooming of their economy (papyrus or linen are good examples) offered them a very smooth means of transportation (fair winds both upstream and downstream). So as early as in 2700 BC they constructed wooden riverboats to travel on the river. An ancient Egyptian boat Another people of the East that was distinct for their entrepreneurial and navigation skills were the Phoenicians. They produced distinctive glass artifacts and scarlet textiles made of a special shell, porphyry. They constructed robust ships, with which they sailed around the world, founding later in their history, 8th century BC, an important colony in Africa, Cartagena, and reached as far as the British Islands and the Baltic Sea. Around 600 BC they probably achieved the circumnavigation of Africa following the order of the Egyptian Pharaoh, Necho. Phoenicians Glass translucent coloured glass In these surroundings and between 3000 BC and 1100 BC we have the Greek civilizations that their people emerged as skillful entrepreneurs at least in this primitive form of conducting business. Namely, and following the time they came to their prime, the Cycladic civilization that was developed in the islands of the Aegean Sea was based on sea trading. They built ships worthy of travelling in open seas and
- 4. 4 they traded their artifacts made of marble, silver or other minerals with agricultural products that they lacked. They dealt mainly with barter trade but also with transit trade by transporting goods from other areas and selling them in turn to other people. Cycladic harpist, ca. 2800 B.C, 29.2 cm.; Parian or Naxian marble, British Museum In the island of Crete we have the powerful Minoan civilization. They had experienced craftsmen (as there was distinct division of labour) and they traded their products (ceramics, textiles or metalwork) with the people in the Near East, the Aegean and Egypt. Minoan "Palace style," vessel (ca. 15th century BCE, Athens National Museum) From the excavations in Crete we came up with three forms of writing: a) the Cretan Hieroglyphics (2000-1700 BC) as it appears on the ceramic template of Faestos. It probably refers to administrative or religious subjects but it has not been deciphered yet. b) The Minoan Grammic A (1700-1450 BC) which we can read but not fully
- 5. 5 comprehend. The important thing is that it refers to products as wine, cereals and figs, to people and animals. c) The Minoan Grammic B (1400 BC) which was fully deciphered in 1952 by J.Chadwic and M.Ventris and which is of outmost importance as again is a list of products as olive oil, honey, wine, aromatic substances, or sheep. It also refers to fighters and chariots, and taxation registers that show a very well organized administration system. Another important feature is that this language is considered a Hellenic language used also by a mainland civilization the Mycenaean. The Mycenaeans dominated the Aegean sea, they colonized Cyprus and founded a strong Hellenic community in Phoenicia. They gradually spread their influence to the west Mediterranean and traded with Sicily, Sardinia and Spain. They also set their minds to acquire the metal mines of the north (The Black Sea) so they set out on what we know as the Trojan expedition to get control of the area. The Mask of Agamemnon, Athens National Museum Ancient Greece (1100-323 BC) The time when the Trojan War took place is the period of time that Homer, years later, describes in his epic poems. Using quite a lot of anachronisms he describes the economy of his time (1100-750 BC) but also of the lost Mycenaean civilization. In his works we have the first written accounts of state economy and early entrepreneurship. A virtuous king is crucial for a prosperous state. “The people prosper under his leadership, and the dark soil yields wheat and barley, the trees are heavy with fruit, the ewes never fail to bear, and the sea is full of fish.” Odyssey XIX 111-114. Economy was based on a strict agricultural system whose unit was the “oikos”- the home. The ideal oikos was the autonomous one that could produce what they needed. It was both a unit of production and consumption. Barter trade was limited
- 6. 6 and only when absolutely necessary. But they could get goods they lacked by other methods as war looting, piracy or by exchanging gifts. The value of goods was measured by oxen, slaves, women, metals or animal skins. There was taxation but paid either as gifts or by exchanging goods. According to Hesiod the luckiest of all people were farmers who had their own farms to cultivate, made their own tools and catered for their family needs. For Homer the lowest social place was occupied by land workers who were hired for their work. Later in time, in the Archaic period (750-480 BC), we have the creation of better structured communities, called city-states. This is the beginning of the economic, political and cultural development of the Greek world. Economy now is based on agriculture, small industry and commerce. The criterion of wealth was agricultural produce. Subsequently, people were categorized according to their property so as to be given political power. A greek colony The main kind of cultivations make up the Mediterranean triad : olive oil, wine (the quality of both was exquisite and highly reputed) and cereals except for wheat or barley which they imported. They had laws to ensure that wheat was sold in affordable prices to all citizens, strict rules that forebode the exporting of these products and generally political or diplomatical movements were generally made bearing in mind this deficiency. Nevertheless, very often wheat traders would create a false scarcity of the product so as to play speculative games for their gain. The Athenian orator Lysias in one of his speeches turns against them.
- 7. 7 The greek city-states dominated commerce in the Mediterranean. These cities were mainly coastal and Plato said that “they were crammed on the coasts like frogs in a lake”. Examples of such prosperous cities were Athens, Corinth, Syracuse, Miletus. It made sense, as for traders it was infinitely easier to promote their commodities through the sea rather than the land. Thus, the Greeks would travel up to Russia to bargain for wheat for the needs of Athens, in the docks of Piraeus they would load ships with olive oil for their colonies in the Black Sea, they would get to Beirut to supply themselves with timber from the cedars of Lebanon, they negotiated in Miletus, in Asia Minor, for their fine woolen fabrics, which they resold double or triple the price in Athens or Syracuse. Their trade ships were 30m long and had a capacity of 100 or even 500 tons. A modern replica of 4th Century BCE merchant vessel We have to imagine that when some cities were developed as trade centres, its character was transformed as they had to cater for the needs of the people who would pour into: inns, tavernas, public baths, and other facilities. Additionally, consulates would be there to represent his homeland and help his co patriots when an emergency raised. Another source of gain for a city was the exploitation of public land, forests, mines, quarries or salt pits. At the time money appears as a means of transactions. So trading is now made for profit. Money appears as early as the 7th c but it was very uncomfortable. It had the shape of an iron spit –ovolos. Later money is made of silver and weighs less. The attic drachma weighs 4.36 gr and values 6 times more than ovolos. A mna is equivalent to 100 drachmas and a talanto is worth 60 mnes.
- 8. 8 Citizens whose income was more than two talanta instead of taxation had to offer some services to the state, “leitourgies” which were some kind of sponsourships. A mna And as we proceed in history we reach the period of Classic Era (480-323 BC) when Greek city-states and especially Athens got to their highest peak of prime. The culmination of this progress is the Golden Age of Pericles. A state that prospers economically will undoubtedly have cultural and political prosperity as well. There were various sources of money influx. Athens formed the Delian League, an alliance like an early kind of company (reminding us of later companies like the one of the East Indies) aiming, in the beginning, to have a strong coalition against the Persians, with equality among its members but soon it turned to an Athenian hegemony with Athens making profits from the other members’ contributions. Athens used the money they got from their allies for the construction of great works some of which we still admire. The Delian League Another source of profits for the state was those coming from judicial revenue and money penalties. Also metoikoi, i.e. foreigners who lived in Athens, had to pay a special annual tax to renew their residence permit. As we have already mentioned, richer citizens sponsoured some activities of the city like theatre performances, religious celebrations or sport events.
- 9. 9 They also made money from the duty paid for the imported products and Athens issued all the permits for transferring on the sea commodities and raw materials. Piraeus, thanks to Themistocles’ astuteness became an important harbour. Laws aiming at promoting commerce and the domination on the sea lead to the development of this sea port. There, traders or entrepreneurs would form the international prices of goods, they would charter ships for long voyages and make business deals. They even had ships ready to be sold. As a consequence of this busy trading activity by the sea, was the construction of the Agora (Market) in Athens to accommodate all the traders and commodities. The Athenian Agora Tourists were also attracted providing steady revenue for the city. Piraeus became a significant traffic in transit centre. There were Customs offices, storage areas, arsenals, chambers of commerce, and shops and of course an integral administrative system for the function of all these services. In the premises we have the appearance of the first banks with bankers starting giving loans with interest. The Athenian drachma, used for trading, was a currency of great value, recognized in all foreign markets. Athens would import wheat and timber but it would export other agricultural and farming products along with ceramics and metal artifacts.
- 10. 10 Big traders were highly respectable while small ones were regarded lowly because they believed that due to their limited capital they could lapse in dishonoured actions. Mercantile laws were made to monitor trading actions and very often tribunals of the city had to deal with mercantile cases. Pericles reinforced the democratic polity by paying salaries to the state archons (leaders) so that everybody, and not just the wealthy ones, could participate in the Assembly (Ecclesia of Deme) making decisions about the state and its welfare. The state also provided pensions for the men who had been injured in wars. Land owners who cultivated their land were still, though, venerable members of society. That’s why they founded colonies: they gave the opportunity to people to find new lands. Xenophon in his book Oeconomicus praises agriculture. Still, the produce of cereals was not enough and they had to import them. Generally speaking, agricultural techniques were very primitive and farming was not very developed. Industry was beginning to rise and most urban people had a vocation. Hard labour, though, was for slaves and foreigners. Anyway, Athenian citizens were busy taking part in the governing of the state or in the tribunals. Craftsmen usually taught their sons their secrets so as to succeed them and they needed knowledge and skills for their crafts. Very often it was difficult to tell the difference between a craftsman and an artist. Among the trades of the time we have pastry makers, pottery makers, carpenters, ship builders, sculptors, tanners, textile dyers. Of course there were teachers, trainers, lawyers and medicinal doctors. However, as it usually happens, a period of such development was followed by a dark period just after the Peloponnesian war that stopped any form of evolution or progress. Spartans, the sworn enemies of Athens along with some important royal houses in northern Greece (among them the Molossian kingdom - the people of Arta are supposed to descend from that tribe) had a different economical system resembling more to the mighty oikoi of the Archaic period. This was also the case with the Macedonian Kingdom which played a tremendously serious role for the future of both Greece and the whole world. Philip II and his son Alexander the Great definitely changed the course of history. In Macedonia farming and agriculture were the solid ground of their economy. People were free farmers, farming was not based on slavery and this gave their society strong bonds and cohesion. The land of Macedonia was very rich in natural resources and there were plenty of rivers. They cultivated all kinds of cereals, had fruit trees and forests from where they got the timber they needed. Philip invested
- 11. 11 in improving agriculture by following a policy of reformations and restructuring. He drained marshy areas, stopped river flooding and used the river waters to improve the micro climate of areas. He was also interested in the development of animal farming by encouraging nomads to have permanent settlements by making use of royal land. He even imported 20000 Scythian thorough bred mares to improve the quality of the horses of his cavalry. Most importantly, after finding a gold mine, he cut golden coins or double-mineral coins (golden and silver) which put aside the Persian golden coins dareikoi . His coins now could be found in the most important trade centres of the known world. Alexander continued his father’s agricultural policy. In the countries he conquered he distributed the land to the people to cultivate, sometimes as a gift and sometimes hiring it. They intensified cultivation and they paid Alexander, as taxation, one tenth of their profits. When Alexander set out on his military campaign, he had with him specialized scientists to study the geography and geology of the new lands. He made maps, studied intensely the flora and fauna and the climate of the new acquired countries. By founding new greek cities from Egypt to India, he contributed to the blooming of commerce and brought tremendous changes to global economy. He liquidized the treasures of the Persian Kings by cutting coins which he expanded in the world markets creating a monetary policy. He established a common currency which was a steady point of value reference globally. He got interested in improving land roads. This means that they constructed bridges, ferries, canals, they installed signposts, stations and outposts. So apart from the naval roads new commodities like cotton, flax, spices pepper or perfumes would travel through any possible routes. His revolutionary methods influenced economy for at least the following 1000 years. Commerce reached its prime not only in the east but in the west we also had important market centres as Marseilles and Cartagena. Generally, people started having a better understanding of the world as travelling had become easier. Pytheas had travelled to the most northern part of England and Eratosthenes had made a world map.
- 12. 12 Roman Time (1-3c AD) During the Hellinistic time – the period when the descendents of Alexander the great ruled - and the beginning of the new powerful Roman Empire, travelling and trading got even greater dimensions. People would go beyond the boundaries of the empire to what they called terra incognita. To the north they got as far as Scotland, to the west to the Canary Islands. A for the east merchants reached China and started importing and exporting products, using on the way trading contacts with India too. Greek and roman delegations were established there. Cinnamon, cotton, valerian herb, pepper and of course silk were some of the desirable products. Gradually, they sailed out in the sea and got as far as Malaysia, Sumatra and Java. They traded spices, camphor, or jade and were trying to get closer to the source of silk. Correspondingly, they brought from home greek-roman figurines, jewellery and ceramics. South bound, Africa was also approached and they got to Zanzibar, Ethiopia and Sudan. For cheap textiles and fancy trinkets they would bring back tortoise shells, ivory and incense. Principal Roman trade routes, internal and external in 180AD In the interior of the empire industry was developing especially in central and western Europe but not agriculture, as people preferred to join the army to ensure better profits and security or to seek work in urban centres. Byzantine period (330-1453 AD) The Roman Empire little by little started to weaken and finally was divided in the eastern and western part. The roman emperor Constantine decided to transfer the capital from Rome to the east, on the site of the ancient greek city of Byzantium which was renamed Constantinople. There, in the eastern part, the greek element
- 13. 13 was prominent so the greek philosophy and culture along with the newly established Christian faith absolutely influenced the character of the new empire. In this period, city life and country life were intertwined. The land was the most important wealth resource. As in most medieval societies, social status is measured by the size of land property (feudalism). Great amounts of agricultural products were exported to the west and east: cereals, olive oil, wine, cotton, silk, fish and farming products. Workers on the field (down) and pay time (up), Byzantine Gospel of 11th century Byzantium was actually a natural bridge between Asia and Europe, so it controlled all forms of trading. Constantinople was the synonym for wealth and welfare. All sorts of products were transferred through the empire’s territories: gold, silver, marbles, ivory, gemstones, amber, enamel, porphyry, et al. For this reason they organized land and sea routes.
- 14. 14 AD 737 - Trade Routes, Colin McEvedy's The Penguin Atlas of Medieval History It is characteristic that the state had a very strict intervention in all forms of economy. For example, sometimes the state had to enforce monopoly to secure the abundance of some kinds of food (wheat). They even had 5 state bakeries to provide with free bread the people who could not afford it. They determined salaries and the price of goods and they supervised private enterprises. They protected the price of goods by acting against trade intermediaries. They were reluctant to let valuables to be exported from Constantinople. Thus, they imposed heavy duties to the Venetian merchants that ventured it. They also prevented their merchants from selling these products abroad. Also foreign merchants were given a short permit of residing in the empire (maximum 3 months) enough just to dispose their goods and leave. They, of course, made sure that the value of their currency was very high and they achieved it for at least a millennium. The influence of Christianity started to appear by engraving Christian symbols on coins.
- 15. 15 Solidus of Justinian II, second reign, after 705 Then the Italians started to take over with the Venetians already controlling the transit trade towards the west. It was not degrading for noblemen, even emperors to have mercantile activities. For instance, Ioannis Vatatzis gained so much from his poultry farm that he bought his wife a new crown. On the other hand Nikiforos Fokas was accused for speculation as, during a period of famine, he had bought all the wheat available and then resold it in an overrated price to the corresponding guild. In the past, as in ancient times, peddlers would go around in neighbourhoods to sell their merchandise. During the time of the Byzantine empire we have the appearance of fairs for people to sell their products. They acted as modern exhibitions for clothing, house equipment and basically foods and drinks. As in the rest of Europe, enterprising activities were organized in guilds (from the saxon verb gildan that means pay). Only in the capital there were at least 23. These had to do with the basics of nutrition (bread, fish and meat) or referred to crafts like tapestry making, weaving and working on metals or with diamonds and silk. The oldest guild was that of the dyers of porphyry. Guilds functioned under specific and strict rules. Women were not professionally active. They could do petty trading like baking and selling bread, making ropes, weaving or knitting. Rich women could deal with investments. But women could also be doctors (gynecologists) or midwives, only that their fee would be less than the males’ equivalent. The Ottoman Occupation (1453-1821 AD) In 1453 Constantinople falls in the hands of the Turks and gradually all territories get enslaved. Obviously, the previous splendor vanishes. The financial situation was downgraded and life became mostly agricultural. Taxation was heavy for the Christians so they had to find the means to survive mainly by cultivating the land. However, in Constantinople and the Ionian islands there were still some well off Greeks. After 1600 AD, the situation deteriorated as the Turks got hold of the best parts of land and the Greeks had to retire to more barren or mountainous areas.
- 16. 16 The growth of the Ottoman Empire Nevertheless, with the decline of the Ottoman Empire, the Turks granted a substantial part of commerce to the Greeks and the Jews by allowing them some privileges. Anyway, the Turks considered themselves more as accomplished warriors rather than merchants. In fact, whole areas were given tax exemption as in the cases of Syrrako or Calarrytes (two mountainous villages near Arta) for their trading and craft aptitude. As for the guilds, the Turks realized it was for their advantage to keep them as they diagnosed the financial and social benefits they would bring to the Sublime Porte. All trades people, merchants and craftspeople were united in sectional corporations that were now called fraternities. This institution was regulated by very strict rules. Another institution of the previous era that revived and even evolved was the one of the trade fairs. They became a focal event for the rural areas and they moved from place to place so that they could cover the whole territory. There, merchants became themselves buyers as it was a chance to get supplies of raw materials they needed for their crafts. These kinds of fairs (without the element of exchanging goods) are still organized in parts of Greece.
- 17. 17 Finally, with the industrial revolution and the import of industrially manufactured goods from the west the fraternities began to decline and fairs changed their character. Lastly, in 1821 the revolution against the Turks began which will lead to the forming of a free Greek state again (at least partly, as the last areas will be liberated in 1913). During the war there was a very busy commercial activity of some prosperous Greeks abroad aiming at sponsouring the fight against the Turks. The same is the case of some ship owners who used their ships for the same purpose. Sometimes even piracy (against the Turkish ships) was used to offer income for the cause. Conclusion Going through the above we can see that in the depth of centuries the entrepreneurial past of Greece was strongly related to the cultivation of land and sea trading. We can’t say that this has changed much in modern times. Each time the historical, political and social conditions, the neighbouring peoples and the prevailing tendencies of the time would configure the exact manifestations of economical activities. The fact is that, no matter the adversities, the people persisted to survive and very often excel in what they did. It’s quite interesting the information we get from written sources, but also from various forms of art. As early as in the works of Homer and Hesiod we get vivid descriptions of the entrepreneurial activities of the time, description becomes more descriptive later in Xenophon’s texts and we are really amazed at the modern terms and thoughts of Plato and Aristotle. Demosthenes, in his speeches, views the weaknesses of entrepreneurship as they emerge in some judiciary cases. We get a lot of information though visual arts. The snapshots of daily life carved on Achilles’ shield, the depiction of trades on the Cycladic figurines, the more detailed description of economical activities on red or black figure pottery and life snapshots presented on byzantine paintings and mosaics. Nowadays, globalisation of economy, automatization and technological advancement make it more difficult for a people to stand out on the arena of entrepreneurial innovation. Yet, men will always attempt to advance further, to excel and to make the difference even outside the boundaries of their homeland.
- 18. 18 Bibliography Ο δημόσιος και ιδιωτικός βίος των Βυζαντινών(Everyday Life in Byzantium) , Talbot Rice Tamara, 1967 Ο δημόσιοςκαι ιδιωτικόςβίος των αρχαίων Ελλήνων(La vie quotidienne en Grece au siecle de Pericles), Flaceliere Robert, 1971 Travel in the Ancient World, Casson Lionel, 1974 The Company: A short history of a revolutionary idea, Mickletghwait John & Wooldridge Adrian, 2003 Η επιχειρηματικότητα στην αρχαία ελληνική οικονομία, Καραγιάννης Α. & Μπαλόγλου Χ., 2008 Articles from the magazine: Historical issues Η οικονομική σκέψη στην αρχαία ελληνική γραμματεία. Από τον Όμηρο στον Ξενοφώντα Η φορολογία στην αρχαία Ελλάδα. Οικονομική πολιτική επί Φιλίππου Β’ και Μ. Αλεξάνδρου. Το εμπόριο των αγροτικών προϊόντων στην αρχαία Ελλάδα. Ο Πειραιάς και το θαλάσσιο εμπόριο στην Ελλάδα. Οι συντεχνίες της μεσαιωνικής Κων/πολης. Από την φεουδαρχία στον καπιταλισμό. Η γυναικεία παρουσία στη Βυζαντινή αυτοκρατορία.