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International Internet Magazine. Baltic States news & analytics Friday, 22.08.2014, 04:57

SEB: entrepreneurial activity in Estonia is higher than in other Baltic States

BC, Tallinn, 02.05.2013.Print version
Starting with entrepreneurship in Estonia is thought to be easier than in Latvia and Lithuania, and there are more company founders in Estonia; although Lithuania has the most entrepreneurship enthusiasts, as a survey conducted in the three Baltic States by SEB shows, informs LETA.

45% of respondents in Estonia consider starting an enterprise to be easy, while in Latvia and Lithuania the percentages are 29 and 30, respectively.

 

“The ease of starting a business determines the number of micro-enterprises and also the broader vitality of the economy. In Estonia, a huge leap has been made in starting businesses because in creating a favourable business environment we are a step ahead of our southern neighbours. If according to the survey, Lithuania has the most respondents who would like to start a business, then Estonia has the most respondents who already have. Annually, about 5,000 more businesses are founded in Estonia than in Lithuania, which has a bigger population,” said Mart Maasik, director of Business Development Division of SEB.

 

Maasik added that in Estonia, 70% of businesses are founded with one’s own resources; but in Latvia and Lithuania it is even more so, at 76 and 77% respectively, followed by the support of family and friends. The differences lay in the utilisation of state aid – if in Estonia, 11% of respondents had received state aid or European Union support, then in Latvia it was six and in Lithuania zero%, respectively.

 

People who have already started a business consider the main obstacles to be finding a market for their product or service and recruiting qualified workers. Finding a market is the biggest problem in Estonia, but the biggest problem for southern neighbours is late payments from their clients.

 

“People who have not yet started a business see the finding of start-up capital as the main obstacle and are afraid to fail. The picture before taking action and the actual life as an entrepreneur are very different,” said Maasik.

 

SEB conducted a comparative survey in Estonia, Latvia, and Lithuania, in which more than 4,200 people from three countries were involved.






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