One-third of Estonian entrepreneurs plan to invest in growth in the coming year, but nearly half rate the current economic climate negatively
The results of a survey conducted in August by pollster Turu-uuringute AS for loan comparison platform Sortter, Estonian small and medium-sized enterprises rated the economic climate as unfavorable, giving it an average score of 2.49 on a five-point scale. Nearly half, or 46 percent, of respondents considered the economic climate negative or very negative.
Among the challenges faced, 57 percent identified operating costs as the most serious issue, followed by finding and retaining skilled workers at 55 percent. Other concerns included market competition, demand, compliance with legal regulations, and access to financing.
Despite these challenges, nearly one-third, or 29 percent, of respondents plan to invest in growth within the next 12 months, with growth intentions higher among medium-sized companies, 42 percent, compared to small or micro enterprises.
In addition to foreign investments, nearly 74 percent of responding companies intend to improve their daily operations for growth. 63 percent plan to hire new employees, and 58 percent aim to invest in marketing. Among companies not planning for growth, nearly 10 percent intend to seek financial support, with 58 percent planning to request government assistance or grants.
Less than half of respondents have explored more favorable business loan options in the past year, with two out of five not doing so. However, medium-sized enterprises are more likely than smaller ones to check if their current financial instruments are available on better terms.
The survey conducted by Turu-uuringute AS for Sortter included over 300 micro, small, and medium-sized Estonian enterprises.
Sortter, which began operations in Estonia this summer, allows entrepreneurs to compare offers from different banks and financial institutions to find the most suitable financial solutions. Sortter OY provides financial services and has been active in the Finnish market since 2018.
Source: BNS
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