Entrepreneurship strategy sent out for comments: Aiming to strengthen entrepreneurship in Finland

The Government’s entrepreneurship strategy strives to build entrepreneurs’ confidence in the fact that Finland is a good place to invest, to start a company, to offer employment, and to build a business. Another objective of the strategy is to make Finland more attractive to foreign workforce and companies.

The strategy brings together entrepreneurship promoting measures that are being prepared by the various ministries. The strategy will undergo public consultation from 10 to 27 March 2020. Comments may be submitted by all organisations and private individuals.

“Successful enterprises create growth, employment and wellbeing in Finland. With this strategy, the Government wants to create an easy and straightforward operating environment for entrepreneurs,” says Minister of Economic Affairs Mika Lintilä.

Entrepreneurs face many challenges in Finland

The strategy presents an up-to-date picture of entrepreneurship in Finland today. By international comparison, entrepreneurship in Finland is on solid ground. Measured by company size, enterprise structure is very close to the OECD average, whether measured as the share of total employment by company size or value added. Almost all enterprises, i.e. 99.8%, are small or medium-sized.

However, there is much room for improvement in the enterprise sector. SMEs account for just 16% of exports. Only a few enterprises have growth targets. In terms of investment, Finland’s performance has for quite some time been weaker than in the key reference countries. Similarly, labour productivity has deteriorated. Challenges experienced by entrepreneurs include the shortage of skilled workers in certain sectors, complex legislation, and inability to fully tap into digitalisation.

“A number of changes are needed in Finland to make it easier for entrepreneurs to develop and grow their business. This requires horizontal cooperation within the Government. Entrepreneurship is important for this Government, which is why we have prepared this draft for an entrepreneurship strategy,” Minister Lintilä explains.

Measures proposed to improve skills and taxation

Several practical measures to address the challenges experienced by entrepreneurs are proposed for each of the seven themes included in the strategy. The themes are:

1. Predictable and competitive corporate taxation
2. Competence and the availability of skilled labour to support business growth
3. Encouraging growth-oriented business
4. Reducing excessive regulation, simplifying service processes and competition policy
5. Entrepreneurship as a driver of regional development
6. Providing new beginnings, security and wellbeing for entrepreneurs
7. Customised services for entrepreneurs to address specific needs and situations

The strategy is based on the Government Programme. After the consultation round, the strategy will be submitted for review at the Government's spending limits discussion, and an implementation roadmap will be drawn up. The present draft has been prepared by the Ministry of Finance, Ministry of Justice, Ministry of the Environment, Ministry of Agriculture and Forestry, Ministry of Social Affairs and Health, Ministry of Foreign Affairs, Ministry of Education and Culture, Ministry of Transport and Communications, Finnish Competition and Consumer Authority, Centres for Economic Development, Transport and the Environment, Finnvera and Business Finland.

Inquiries:
Jenny Hasu, Special Adviser to the Minister of Economic Affairs, Ministry of Economic Affairs and Employment, tel. +358 29 504 7213
Jaana Lappi, Ministerial Adviser, Ministry of Economic Affairs and Employment, tel. +358 29 506 2658