Producers, Investors Rally '2nd Wave' of Finnish Businesses
'Estonia Invites You,' reads the poster in Helsinki harbor
( Photo: Postimees/Scanpix )
Some of Estonia's top producers and investors say a "second wave“ of Finnish-run companies seeking prospects in Estonia is underway.
The Estonian Logistics Cluster and the Finnish office of the research and development investment foundation, Enterprise Estonia, are both trying to attract Finnish investors. Already a fourth of Estonia's foreign investments comes from Finland, they said in a joint press release.
The organizations pointed to the words of Juha Hämäläinen, an adviser for the law bureau Sorainen, who, in the Finnish newspaper Kauppalehti, asserted that the Finnish government's plan to increase dividend and capital taxes is causing companies to turn to Estonia. According to Hämäläinen, there are already some 10,000 Finns in managing positions in Estonia.
"We have a similiar understanding of quality. Cultural affinity is also an important factor. The Finns may plan their activities further ahead, and perhaps Estonians are more flexible and have experience working in a constantly changing environment. We are different enough to attract business and similiar enough to make cooperation possible,“ said Enterprise Estonia director in Helsinki, Valdar Liive.
Citing the benefits of doing business in Estonia, the champions of Estonian-Finnish business relations listed the fact that a company can be started from scratch in two hours; running a business and communicating with the state is entirely electronic; there is no tax on business profits, allowing for quick growth through reinvestment; Estonia has not experienced any major strikes; the country has a small debt burden; and now, with the acquisition of the euro, Estonia has done away with the risk of devaluation.