One in Eight Estonian Companies Exports, SEB Reported
OREANDA-NEWS. October 08, 2012. In addition to its other effects, the economic crisis has brought about a significant increase in the number of exporting companies: instead of the 9 000 companies previously, products and services are now being sold abroad by 12 000 companies, that is, by one in eight Estonian companies, managers of SEB reported at press briefing on entrepreneurship, reported the press-centre of SEB.
According to Statistics Estonia, from 2007 to 2011 the percentage of exporting companies increased the most in Saare County, by 39 per cent, reaching a total of 158 such companies. Saare County was followed by Harju County and Rapla County, with increases of 32 and 29 per cent respectively.
“Remarkably, entrepreneurial activity has grown in the counties, which gained approximately 400 exporting companies. In large part, export destinations remain the same: Russia’s share has increased, reaching 15 per cent last July, whereas Latvia’s has decreased. Those who have made it onto export markets, however, will do well to diversify their portfolios, lest any changes in the economic environment cause setbacks,” said Riho Unt, Chairman of the Management Board at SEB Pank.
Of the Baltic States, Estonia boasts the highest levels of entrepreneurial activity; however, the concern is how to grow companies past the mark of having 20 staff, which is a point in a company’s evolution when its own resources no longer suffice and a good strategy is needed in order to move forward.
“Small and medium-size enterprises employ 80 per cent of Estonia’s population. It is our flexible companies that form the linchpin of Estonia’s economy. That being said, 75 per cent of those companies are too small to take on financial directors to provide sound advice their owners. As a result, the manager of a company is left to face challenging decisions on his or her own. What we wish to do is fill this gap and make available the treasure trove of our knowledge and experience, so that a company can make use of it for the benefit of its financial management and its development overall. It is for this purpose that one of the most ambitious consultancy projects of all time has been launched,” stressed Unt.
This October and November, SEB is carrying out an ambitious consultancy project that will see the bank’s representatives call on approximately 900 of Estonia’s small and medium-size enterprises, in all 15 Counties. They will be travelling Estonia’s roads in ten Smart minis decked out in SEB’s livery, which will also serve as a reminder about the importance of green transport.
As part of the consultancy project, SEB will furthermore conduct a survey asking companies in the Counties to estimate their developments in turnover, changes in staff numbers, export and innovation plans, and proposed investments in 2013.
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