A survey of small and medium-sized business owners provides a gloomy snapshot of the economy. A growing number of entrepreneurs, about one in five, described their financial status as bad or quite bad.
According to results published over the weekend by the Finnish entrepreneurs association Suomen Yrittäjät, less than half said their situation was good, with about one third saying it was "neither good nor bad".
"Optimism washed away by winter rains"
"The optimism that sprouted in the autumn has been washed away by the early winter rains and Finland's placement under the [EU's] excessive deficit procedure," the group’s CEO, Mikael Pentikäinen, said in a press release on Saturday.
The situation is most difficult for the smallest companies, those in service sectors and in parts of Uusimaa beyond the capital region.
"The situation of female entrepreneurs is clearly worse than that of male entrepreneurs. About one in four female entrepreneurs assess their situation as weak," said Pentikäinen.
Approximately one third of immigrant entrepreneurs in Finland are women, a slightly higher rate than among native-born business owners.
Immigrants starting more companies
Meanwhile the number of entrepreneurs born abroad has risen sharply, from less than 10,000 in 2008 to more than 30,000 in 2023, according to Statistics Finland data.
The number of new companies started by people of immigrant background rose by 20 percent in the first half of this year, according to Anneli Komi, CEO of the Finnish Enterprise Agencies.
"The number is growing all the time, everywhere in Finland," she told Yle.
According to Komi, immigrants tend to establish businesses in the services and trade sectors as well as transportation and storage.
"In the current employment situation, entrepreneurship is often the only good and viable option, and for some it is even the only solution," Komi said.
Next year does not look bright at the moment, based on the entrepreneurs’ poll. Its outlook for the next 12 months has clearly weakened during the autumn.
Only about a third of respondents expect their financial status to improve, while almost a fifth expect it to deteriorate.
Pension contributions set to rise in 2026 for many
The reform of the Self-Employed Persons' Pension Act (YEL) is also causing concern among entrepreneurs.
"Many entrepreneurs, especially smaller ones, are horrified by the reform, which brings substantial contribution increases. The government must make it clear as soon as possible that the YEL reform will be carried out in a way that encourages entrepreneurship and does not increase contributions," said Pentikäinen
The entrepreneurs’ survey was conducted by Verian between 4 and 11 December. Representatives of just over 1,000 small and medium-sized enterprises responded to the survey. The margin of error is three percentage points.
