Despite its low demographics, Finland boasts a thriving start-up environment that is rapidly expanding. In addition to this, there are also plenty of incredible Finnish entrepreneurs who have started operating in the region. Furthermore, Finland’s environment benefits from the expansion of the new businesses, with Greater Helsinki emerging as the world’s greatest start-up center.
A step towards success in 2020
Due to the sheer COVID-19 pandemic, the year 2020 has been a life-changing year for most businesses. On the other side, the year served as a stepping stone for Finnish start-ups seeking to grow and expand their businesses and become known in the entrepreneurial industry.
Finnish start-up companies did exceptionally well in 2020 by raising over a billion euros in capital over the year. It’s also worth noting that, in 2019, Finland was accountable for 10% of all start-up turnovers worldwide, which is a great success for the nation in general.
Factors determining the success of Finland start-ups
Finland’s financial outlook has been at an all-time best in recent years, and the country now has an extensive start-up infrastructure, making it a viable source of the much-required development. As a result, to understand the success of Finnish start-ups, we must consider several criteria to understand the success’s pace fully.
Factor 1- The sudden fall of Nokia
Nokia is a well-known firm for its revolutionary technology devices that have changed people’s lives. Nokia has undoubtedly contributed significantly to the global economy; nonetheless, Nokia’s invention has had a significant impact on the products of smaller and emerging businesses.
Similarly, conventional Finnish exports began to decline with the advent of the Nokia company, but this resulted in them coming up with new inventions. However, with Nokia’s abrupt collapse, many tech-savvy entrepreneurs were left alone, which became a role in expanding Finland’s now varied start-up culture, contributing to industrial success.
Factor 2- The solid support system
With their liberal funding policies for companies with future development potential, the Finnish government has traditionally provided a strong support structure for aspiring entrepreneurs and businesses. Tekes, the Finnish Funding Agency for Innovation, is in charge of the financial help that potential firms receive from the government.
On the other hand, a company like Startup Sauna helps new businesses get off the ground faster by supporting five-week accelerator programs for entrepreneurs. This also helps the Helsinki-based organization’s annual Slush Conference for start-ups.
As a result, Finland’s government’s support system has played a significant influence in the country’s ranking as the second-best country for innovation, according to the World Economic Forum.
Factor 3- The reduced labor costs
The Finnish economy has traditionally struggled with poor labor productivity and high labor expenses. The agreement is significant since it includes a temporary halt to wage rises, increased working hours per year, and a drop in other employee benefits, all in exchange for lower income taxes.
This is likely to change as new businesses emerge and existing companies expand after attracting significant investment.
Starting a business has always been complicated and loaded with risks, but the factors listed above will likely keep the start-up scene in Finland thriving.