Did you know some of the most successful companies started in Scandinavia? iZettle (acquired by PayPal), Bluetooth, Skype, and Lego are some of them.
Have you ever thought Scandinavia would be an excellent place for your business? Let’s have a look at what makes it attractive as an ideal entrepreneurial environment.
Scandinavia covers three countries, Denmark, Norway and Sweden, with around 25 million inhabitants. It is noted as one of the least corrupt regions worldwide with effective government and a highly digitized public sector.
Scandinavians celebrate their innovation and business success. Their corporate tax rates are comparable to the rest of Europe, and most of the states have a liberal labor market.
So let’s find out more about the nuances of starting a business in Scandinavia.
Access The European Union Market
Most of the Scandinavian countries already joined the European Union, and as official members, they can access the market and its customers.
The largest markets in Scandinavia are Sweden and Norway, so they are excellent locations for start-ups that want to run their operations from a centralized state.
Nordic countries are known as the biggest beneficiaries of foreign investment, so young entrepreneurs can easily find funds for their ventures if they establish their headquarters here.
The Scandinavian economies are among the states in Europe with the best macroeconomic performance in the last decade. Norway, Sweden, Finland, and Denmark are also among the top 10 global economies.
Hire Skilled Workers
There’s a reason why so many international students choose the Nordic countries as their destination for college.
Scandinavian public schooling systems are among the best worldwide, and the level of education is higher than in the rest of Europe. Recruiting locals is easy in most of the fields because the Nordic people have extensive knowledge in many areas.
During the recruitment process, international investors can work with companies like regnskapsførertilbud.no to hire expert accountants. No matter the size and specifications of the business, all ventures need a skilled accountant to manage funds and paperwork.
Adam S. Posen, the president of the Peterson Institute for International Economics in Washington, stated that the people who are born in Sweden have won at life because they are gifted with amazing educational tools.
Worldwide, people fear automation because they find it a threat to their paychecks. Still, in Nordic countries, workers are optimistic about using robots because they trust the social welfare model their governments promote. They know that even if technology eliminates some jobs, it also creates many others, and their states provide support and training to help them transition.
The Nordic model has reached peak levels of success because the citizens are willing to pay high taxes and understand that they all are supposed to work to support their economies. In return, the governments ensure all working-age people receive training and education to gain skills that land them jobs in high-wage industries.
Sweden is one of the Scandinavian countries that receive a large number of immigrants, and they treat them similarly to their citizens. Carl Melin, the policy director at Futurion, a research institution in Stockholm, state that people are solidary with the immigrants who are willing to share their lifestyle and principles.
Economy Is Stable and Innovative
Scandinavia is a robust place to do business because it has a sound banking system, healthy public finances, and a stable political system. Nordic economies are some of the most innovative globally, and the public is actively involved in supporting the local economies.
Most of the states make extensive public investments that create an excellent infrastructure; businesses can take advantage of it. Annually, the governments allocate billions of euros for infrastructure projects, and even if the geography is harsher than in other parts of Europe, Scandinavia has high-quality roads and public transport.
As mentioned above, Nordics don’t see automation as a threat to their jobs; they consider it helpful.
Software is a tool highly used in Scandinavian countries, so there’s no surprise they are strong in gaming. Their skills recommend Nordics as a mix of developers and designers that make good products for their clients. They create software for gaming and other purposes to meet the market’s requirements. Their aptitudes allow them to research the market, identify a need, and provide solutions. And this is why Nordic economies rely on technology. To prove our point, we’ll check the numbers for 2017.
Three years ago, the verticals that received the best funding were enterprise SaaS with 45 deals, i.e., of all businesses, fintech with 41 deals, health and wellness with 40 deals, entertainment with 23 deals, gaming with 22 deals and retail with 21 transactions.
Scandinavians Enjoy Work-Life Balance
While for the rest of the world, being a workaholic became a lifestyle, Scandinavians still find it essential to balance their job with their hobbies and personal life. They don’t spend the nights at their offices and don’t consider their jobs more important than their families and friends.
Foreign investors may find surprising that Nordics leave their offices early and eat dinner by 6 pm.
Universum Global ran a survey to map Nordic business, engineering, and IT students’ favorite employers and career goals. It concluded that people, and especially students, find it crucial to balance their work with their life.
For companies, this lifestyle is beneficial because a relaxed and happy employee delivers better results than a frazzled worker who cannot focus on the tasks they have to complete.
Even if the Nordic countries are unexploited territory for foreign entrepreneurs, they have strong potential and purchasing power, so starting a business here is a tough decision. To achieve success in the Nordic countries, business people must come up with innovative and contemporary ideas.