Press release 14.2.2022
SMEs entered the current year in an exceptional situation as the pandemic began to accelerate again. The situation is directly reflected in the expectations of small and medium-sized enterprises in Uusimaa about the economic outlook in the near future, and expectations have fallen sharply, says the SME barometer.
The persistence of the pandemic and the restrictions in force have put downward pressure on the outlook for SMEs. On the positive side, however, expectations on the evolution of staff numbers have remained positive and even improved slightly.
The business outlook for the Uusimaa Entrepreneurs' Region is almost on a par with the rest of the country, but clearly below the outlook for the capital region and Häme. The outlook for profitability is weaker than in neighbouring areas and slightly lower than the national average.
Of the sub-regional units, the general business outlook for Central Uusimaa and Itä-Uusimaa, as well as the expectations for turnover and the number of employees, are at the same level as in the Helsinki metropolitan area. Profitability expectations are clearly positive only in Itä-Uusimaa.
- Both in the Uusimaa Entrepreneurs' Region and nationally, the responses show the changing and uncertainties in the operating environment. The ongoing reform of the welfare regions is reflected in regional differences, as is the different timing of the effects of the interest rate. The fact that profitability expectations are in the doldrums is worrying. Regional differences are visible and this poses a challenge for future decision-makers, especially in the West, says Petri Ovaska, Regional Director of Uusimaa Entrepreneurs.
The SME Barometer is published twice a year by Finnish Entrepreneurs, Finnvera and the Ministry of Economic Affairs and Employment. This time, 5 201 enterprises responded to the survey. The response period was December 2021 and January 2022.
Economic expectations affected by the spiral of austerity
- Economic expectations, which rose sharply in the autumn, have weakened as society has had to close down again despite high vaccination coverage. Uncertainty is compounded by the mutation of the virus and the resulting repeated closures in many industries, says Mika Kuismanen, chief economist at the Finnish Enterprise Association.
The results reflect the protracted nature of the pandemic and the constraints on economic activity. Both turnover expectations and investment expectations follow the general business cycle and have fallen.
Good access to finance - investments planned?
For companies in Uusimaa, access to finance seems to be at a good level. However, half of the entrepreneurs in Uusimaa estimate that credit policy has tightened, for example in the form of collateral requirements. In addition, the cost of finance is perceived as a barrier when looking at companies that did not apply for or obtain finance when they needed it.
In Uusimaa, the intention to apply for funding for investments is higher than last autumn and at national level.
- This hopefully heralds the slow unwinding of the investment rate cap. It is important to invest in order to lay the foundations for new growth," says Anna Karppinen, Regional Director of Finnvera.
30% of businesses are due to change ownership in the next 5 years.
- At national level, the situation of business ownership change has never been so acute. By promoting ownership changes, we also create opportunities for business renewal and new growth. Despite the interest rate crisis, financing for business transfers seems to be in order," says Elisa Sipponen, Regional Manager of Finnvera.
For more information:
Petri Ovaska, Regional Director, Uusimaa Entrepreneurs, tel. 050 558 5674
Director Mika Kuismanen, Finnish Entrepreneurs, tel. 050 356 0705
Anna Karppinen, Regional Director, Finnvera, tel. 029 460 2671
Elisa Sipponen, Regional Manager, Finnvera, tel. 029 460 2834