OREANDA-NEWS. December 16, 2014. According to the Business Barometer survey of small and medium-sized enterprises conducted by SEB, the companies in Viru County expect to grow their markets and increase the number of employees in the coming business year.

According to a survey of 2,837 small and medium-sized enterprises conducted by SEB from October to November 2014, the optimism of Estonian businesses decreased from 25% to 20%. In general, a drop in business optimism can be seen across all sectors, starting from new job creation to investments and plans to penetrate new markets. Compared to the previous year, only one area – innovation – demonstrated growth. The results of Viru County notably differed from the Estonian average in several parameters.

Inga Rudusa, SEB`s Head of Financial Management and Operations and Member of the Management Board: “The results of the business survey of recent years show that Viru County as a business area is starting to play a more dominant role in the Estonian business landscape. Local companies are bold in their undertakings compared to the average Estonian enterprise; they do not shy away from risks and are ready to make changes in their everyday life”.

For example, companies in Ida-Viru County plan to hire the largest number of employees in the next year, although compared to the previous year, the great plans of the region have been curtailed (44% in 2013 and 28% in 2014). However, the average indicator of job creation in Viru County significantly exceeds the Estonian average, with the indicator in Ida-Viru County being the highest in Estonia. The industrial and construction sectors plan to increase their number of employees the most.

In terms of expanding own markets and penetration plans for export markets, Viru County companies place third after Harju County and Parnu County, with 80% of respondents showing an interest in the subject. The survey did not involve the largest exporters of the region, i.e. oil shale sector companies.

Compared to the previous year’s result, a major change in investment plans is apparent. Whereas last year, 42% of Estonian companies planned to make investments, this year only 16% of respondents plan to do so. Although this trend also influenced companies in Viru County, companies in Ida-Viru County stand out with the greatest investment plans (22% of respondents of Ida-Viru County and 19% of Laane-Viru County plan investments) and Laane-Viru County’s indicator is one of the highest in the country.

The desire of Estonian companies to contribute to innovation has grown considerably: whereas last year, the Estonian average was 59%, this year it is 73%. The plans of Viru County companies regarding innovation are one of the most ambitious in the country, equalling Harju County companies. Compared to the survey conducted in 2013, the general interest of companies in innovation has grown but especially in Laane-Viru County (56% in 2013 vs 66% in 2014). For example, interest in innovative activities in the agriculture and forestry sectors has grown from 42% to 61% in a year. However, the plans of companies in Laane-Viru County to implement innovative activities currently fall short of the Estonian average (73%), in addition to being lower than the corresponding indicator in Ida-Viru County (80%).

SEB East Estonia Region Manager Toomas Palts: “Although Ida-Viru and Laane-Viru Counties lie side by side, it is quite hard to see similarities in terms of business development. While Laane-Viru County keeps up with the general trends in Estonia, Ida-Viru County stands out from the average indicators and main trends in Estonia in many areas, indicating that industrial and energy companies, mainly the oil shale sector that provides the greatest economic development and stability in the region, play a major role here.“

2,837 small and medium-sized companies participated in the business survey conducted by SEB; Viru County placed fifth in terms of response activity. Three largest sectors of Ida-Viru County, i.e. industry and energy, servicing and administration and trade were involved in the survey. As for Laane-Viru County, the main sectors were servicing and administration, agriculture and forestry, and education, culture and health care.