Uusimaa SMEs More Growth-Oriented Than Rest of Finland, Survey Finds

Uusimaa SMEs Show Higher Growth Appetite Than National Average

Small and medium-sized enterprises (SMEs) operating in the Uusimaa region of Finland are more inclined towards growth and investment than their counterparts elsewhere in the country. This finding comes from OP Pohjola's "Room for Growth" survey, which polled approximately 540 business executives nationwide. The survey indicates that SMEs in Uusimaa, particularly smaller businesses, are demonstrating a stronger drive to expand their operations.

The survey reveals that the typical growth target for SMEs is a sales increase of around 30 percent over a three-year period, translating to less than 10 percent annual growth. Professor Jaakko Aspara, who led the study, noted that this is a relatively modest target, with only one in six SMEs aiming for substantial growth or a doubling of revenue within three years. However, the proportion of companies aiming for strong growth is higher in Uusimaa: 42 percent of small SMEs and 35 percent of mid-sized SMEs in the region target at least 50 percent growth over the next three years, compared to 32 percent and 27 percent, respectively, in the rest of Finland.

This growth orientation is also reflected in investment plans. In Uusimaa, 43 percent of small and 36 percent of mid-sized companies prioritize expanding their operations over improving efficiency. Looking ahead 12 months, 44 percent of Uusimaa SMEs plan to increase their investments, a significantly higher figure than the 33 percent reported in the rest of Finland. Investments primarily focus on developing existing business operations, including product and service enhancements, sales, and marketing. The Uusimaa region also sees greater investment in growth initiatives, such as acquisitions, compared to other parts of the country.

Workforce growth expectations are also more robust in Uusimaa, with small businesses planning to increase their local workforce by up to 6 percent. Nationwide, SMEs anticipate an average workforce increase of 2.5 to 4 percent this year.

The primary obstacles to growth in Uusimaa mirror those faced nationally, with high costs, strict regulations, and low consumer confidence being significant dampeners. Notably, challenges related to financing are perceived as less of a barrier in Uusimaa. Companies in the region also express more optimism regarding overall economic development compared to those elsewhere in Finland.