The factors that favoured the development of industry during the interwar period are several. For instance, the workforce cost fell much, given the fact that after 1923 the increase of nominal wages did not keep pace any longer with the increase of inflation. Xenophon Zolotas wrote in 1925 "nowadays the worker is paid less than before the war" (X. Zolotas, E Hellas eis to stadion tes ekbiomechaniseos, Athens, 1926). At that year the industrial growth was remarkable. Out of the 216 active factories 43 first operated in that year. In the industrial sector 225 million drachmae had been invested, while another 136 million were appropriated for increasing the funds of already operative enterprises. The government reinforced the secondary sector of production with legislative measures.

After a period of recession during the two years when the Asia Minor campaign culminated in the disaster (1921-22), there was a rise in the number of societes anonymes (not neccesarily industrial) in mid-1920s. That can be seen in the following table:

Year ----- Number of established companies
1916 ----- 7
1917 ----- 19
1918 ----- 37
1919 ----- 27
1920 ----- 30
1921 ----- 15
1922 ----- 16
1923 ----- 32
1924 ----- 53
1925 ----- 88
1926 ----- 109

Textile manufacture, enriched with raw material from the new cotton cultivations, woollen fabrics industry and carpet manufacture (carpets were brought to Greece by the inhabitants of Asia Minor) occupied an important place in industrial development. Silk industry had been particularly protected through the prohibition of foreign imports in the summer of 1925. At the same time various small industry units were bolstered, as for instance pastry-making, beer, alcoholic drinks, soap, chemicals, fertilisers, glassware, pottery, dyestuffs, explosives etc. Lastly, skilled refugees contributed significantly to the development of the tobacco industry.