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What you need to know about Finnish market💼

Finland used to have a mere agricultural economy that didn’t offer brand-new products and innovations. However, now things are different: Finnish economy has become a world trend-setter famous for its innovative market ideas. Particularly, considering the population of Finland is 5,5 million, its commercial influence seems even more impressive. In 2020, Finland’s GPD was $270 billion with nominal capita GPD of $50,000. This is higher than in Canada or Germany.

Digital innovatory
Digital competence is a special power of Finland. It outperforms all the EU countries in terms of digitalization and is considered one of the best players in the world. Being the leader in digital expertise, Finland takes all the opportunities to create innovative companies from scratch. Besides, the country is one of the best at communication technologies.

Information exchange
Open-mindedness and honesty are typical traits for Finnish culture. Finnish companies and organizations consider knowledge an important factor of competitiveness, but the crucial one is knowledge exchange. For many other countries it’s surprising how many Finnish companies share their experience with each other. This is beneficial for investors as well. The more companies receive information, the less likely they are to make the same mistakes.

Constant research
Finland is well on its way to sustainable future. The most of research is conducted by VTT — one of the leading European organizations. In the last years, loads of VTT startups appeared and gave sustainable innovative solutions to change the world. For example, Paptic and Infinited Fibre were rewarded for developing eco-friendly materials.

Challenges
Finland’s market is open to American goods, services and investments. There are relatively few barriers to trade. The overall size of the Finnish domestic market is quite small. On top off that, consumers have high expectations in terms of product innovation, design, quality, and price. High taxes, regulatory red tape, and labor inflexibility still pose challenges to new businesses.

Finland offers stability, functionality, high quality of living, and a developed digital infrastructure. Key challenges for foreign investors include high personal and VAT tax rates, a rigid labor market and bureaucratic red tape in starting businesses and opening bank accounts.

How do you feel about Finnish market? Share in comment 💬


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