Business outlook in the Espoo region seen as better than the national average
According to SMEs, the overall business outlook in the Espoo region is more positive than in Finland as a whole. Employment, turnover, profitability, investment value, and innovation prospects are also above the national average. Changes in international customs policy have had little impact in Espoo.
The results come from the SME Barometer survey, in which 203 companies from the Espoo region participated. The main sectors represented were services (67%), trade (18%) and construction (9%). For 82% of respondents, annual turnover was below one million euros.
In terms of turnover and profitability, Espoo-based companies expect conditions to remain similar to those reported in the previous survey. Their growth orientation and export activity are higher than the national average, although long-term growth orientation shows a declining trend. International activity and exports are concentrated mainly in the service sector.
Almost half of Espoo SMEs have clear growth plans. International growth is usually directed towards European markets. Changes in international customs policy have not significantly affected Espoo-based companies. The use of Business Finland’s internationalisation and financing services is clearly increasing, although only 7% of SMEs used them in the past year.
“Employment prospects in Espoo are stronger compared to the national average and the rest of the Helsinki metropolitan area. Compared to the previous survey, SMEs’ recruitment intentions have strengthened,” says Esa Kinnunen, CEO of Federation of Espoo Enterprises (Espoon Yrittäjät).
The financial position of Espoo-based companies is also better than elsewhere in Finland. Fewer companies reported payment difficulties, and the need for external financing was lower than the national average.
Eighteen percent of Espoo companies plan to seek external financing within the next year. Encouragingly, most of this financing is intended for growth, internationalisation, and staff competence development. Financing for ownership arrangements is also sought more often than elsewhere in Finland, while investments in machinery and construction are clearly below the national average.
External financing is typically sought from banks, with Finnvera maintaining its role as a key alternative to bank loans, alongside Business Finland and the ELY Centres.
“Companies are looking to the future and have become more confident in seeking growth and strengthening competitiveness. Finnvera offers a diverse range of financing instruments, such as loans for digitalisation and environmental projects, which we hope will encourage companies to invest,” says Anna-Mari Palo, Regional Manager at Finnvera.
Read more about the results of the SME Barometer survey on the Federation of Espoo Enterprises website(external link, opens in a new window). (in Finnish).
More information:
Espoon Yrittäjät, CEO, Esa Kinnunen, esa.kinnunen@yrittajat.fi, tel. +358 40 5860928
Finnvera, Regional Manager, Anna-Mari Palo, anna-mari.palo@finnvera.fi, tel. +358 29 4602637
_ _ _
Federation of Espoo Enterprises is a part of Business Espoo, a service network for companies and entrepreneurs in Espoo and the surrounding municipalities, formed by six organisations. Our goal is to increase the number of jobs and vitality in Espoo by producing customer-oriented, cost-effective and high-quality services for companies and entrepreneurs. The other organisations that make up Business Espoo are City of Espoo, Enter Espoo, Helsinki Region Chamber of Commerce, Omnia and Espoo Regional Enterprise Agency. More information: BusinessEspoo.com