Mr. Sofronas has seen his sales drop by 45 percent since the onset of an unprecedented debt crisis earlier this year that prompted the Greek government to increase taxes and cut public salaries, in return for a ?110 billion, or $154 billion, rescue package from its euro zone partners and the International Monetary Fund. The measures have sliced profit margins at businesses large and small and damped consumer demand.

Watching shops closing one after another on his street has made Mr. Sofronas nervous, but he will not contemplate bankruptcy. ?This business feeds nine people,? he said, referring to his family and five employees. ?I can?t give up.?

In Greece, small businesses ? defined as stores or workshops employing fewer than 10 people, though many are one-person operations ? account for 96 percent of all enterprises and employ around two million of Greece?s five million-strong work force. Many small businesses, particularly in Athens and on Greece?s many islands, support the tourism sector, a crucial part of the economy that is also reeling from the repercussions of the debt crisis.

?Small businesses are Greece?s lifeblood,? said Vassilis Korkidis, chairman of the National Confederation of Greek Commerce, known by its Greek acronym Esee. ?What we?re seeing now is a hemorrhage.?

The government of Prime Minister George A. Papandreou insists it is dealing with the problem despite pressure from its international creditors to push through a raft of changes to cut public spending and raise revenue. Having streamlined Greece?s bloated civil service and pension system and initiated a crackdown on tax evasion, the government has now turned its attention to helping small businesses.

It has pledged to put ?5 billion in E.U. subsidies into a support fund for small businesses over the next year. Greek banks are to contribute to this fund, although it is unclear how much. ?We made a liquidity agreement with the banks to channel quick and ready cash into the market,? Michalis Chrysochoidis, the development minister, said in a statement. ?Our aim is to offer small businesses cheap, accessible and fast money,? he said.

The government has also pledged ?25 billion in guarantees to enable Greek banks to issue more loans to businesses.

Mr. Papandreou has repeatedly stated his government?s commitment to reducing taxes on all businesses ? currently 24 percent on retained earnings and 40 percent on dividends ? but has not given a time frame. Last month, in a speech before entrepreneurs in the port of Thessaloniki, Mr. Papandreou pledged to speed up relief for businesses by bringing forward planned cuts to the retained earnings tax ? to 20 percent from 24 percent ? having them apply from next year instead of 2014.

Mr. Korkidis, the commerce group chairman, said the measures would help when they materialized. Still, it remains unclear whether more credit lifelines will save small businesses. Many are already in debt to banks, owing a total of ?144 billion in loans for business expenses and expansion, according to Mr. Korkidis. Small businesses also owe ?3 billion in taxes that must be paid over the next three months. These are outstanding value-added-tax bills that businesses must pay by the end of the year or face legal action.

Of course much of this tax liability is theoretical as many businesses have traditionally avoided paying their VAT bills to the state. Some economists say that tax evasion has been a survival tactic for thousands of businesses.

?For many, pocketing the VAT was the only way they managed to stay afloat,? Mr. Korkidis said.

The problems are acute both in production and in the retail sector. Small manufacturers face higher operating costs and fewer orders from cash-strapped retailers. In retail, those suffering most are stores selling clothes, shoes and accessories. They have seen their revenue drop by an average of 35 percent, according to the Esee.