Like the thousands of small to medium-sized enterprises in Finland, many are motivated by the need to close the year profitably. This focus is understandable and reflects a pragmatic approach to business. Finland is home to approximately 580,000 companies that employ 1.5 million people. However, the vast majority of these firms are SMEs, often constrained by limited resources and time. While deeply committed to providing quality products and services, their lack of time and resources significantly hinders their ability to future-proof against market changes, which ultimately restricts their potential for genuine organic growth. This approach was once described as ‘’rowing the boat so much yet forgetting to switch on the motor engine’’. Although this strategy was effective in the past, it has now reached its limits as a viable model in today’s global market. 

Finnish Market: A Historical Perspective

The Finnish market’s DNA evolved from a strong nationalistic ideology shaped by the socio-economic changes of post-war Finland in the 1950s. This era marked a crucial transition from a predominantly agrarian society to one of Europe’s leading economies by the 1980s. Finnish cities grew significantly as people migrated from rural areas to urban centres, leading to the flourishing of factories and industries during this time. This period also witnessed the growth of small and medium-sized enterprises (SMEs), which have become an integral part of the Finnish national market. They were the driving force behind the Finnish economic miracle and continue to be the backbone of the economy today, remaining the largest employer group in Finland.

Finland’s accession to the EU in 1995 marked a significant transition, ending its national domestic market—previously focused on export and import across national boundaries. Joining the EU not only opened the market to Europe but also offered opportunities worldwide. Over the past 30 years, larger Finnish corporations have swiftly capitalised on this expansion, rapidly growing their market presence. They have developed the necessary resources and expertise to navigate the international landscape, gaining valuable insights to optimise their sales and operations globally. 

In contrast, Finland’s small and medium-sized enterprises (SMEs) highlight a story that is not reflected in the successes of larger companies. These companies often lack the resources and time to cultivate international sales or operations.

The space to rethink the future

In Finland, the vast majority of SMEs are driven by dedicated and skilled entrepreneurs. However, they often face a lack of time and resources—time to envision their future and resources to gain insights into their industry and identify potential opportunities. As a result, many SMEs find themselves confined to local markets, unable to fully realise their potential in international arenas. 

Often, time and imagination limit SMEs’ ability to build a successful future.

Engaging imagination involves an open mind, curiosity, courage, and a supportive environment. Incorporating elements of fun and humour is essential in fostering innovative ideas. At Yeppis, we assist entrepreneurs in challenging their assumptions, examining different viewpoints, and taking calculated risks without fearing failure. Additionally, it is crucial to cultivate a space that promotes imagination, where individuals feel safe expressing their ideas freely. 

 Small and Medium-sized Enterprises (SMEs) require adequate resources, including time and financial support, to turn their ideas into effective strategies. Engaging in open dialogue with various stakeholders broadens perspectives and can reveal new opportunities. Fostering an environment that views mistakes as opportunities for learning encourages experimentation and drives innovation. Creativity flourishes when individuals feel supported and are free to explore new possibilities. For Finnish SMEs, cultivating this environment of creativity and long-term planning is essential for achieving international success and ensuring future resilience.

Reframing the Possible 

Working effectively with SMEs requires a deep understanding of their industry and market dynamics, not only in Finland but also on an international scale. The key lies in fostering dialogue and creating business clusters. At Yeppis, we focus on these very challenges in our collaborations with SMEs. Through our discussions, clients begin to re-evaluate their operations and gain insight into their position within their industry’s ecosystem. This heightened self-awareness significantly alters their perception of their place in the market and helps them recognise the scale of their industry and potential. This often leads to a deeper understanding of future trends and new business opportunities. 

Gaining a holistic understanding of the industry has a secondary yet more profound impact on SMEs; they begin to challenge the traditional notions of exports and imports that are confined by national borders, recognising that their local market actually extends beyond Finland and into the broader European landscape. For many SMEs, this insight profoundly influences their strategic direction and operational decisions.

By fostering creativity, encouraging dialogue, and supporting long-term planning, Finnish SMEs can unlock their full potential, achieve international success, and build resilience for the future. At Yeppis, we are committed to helping these businesses thrive in an ever-changing global landscape.

Our knowledgeable team, with over 25 years of experience, is committed to supporting small and medium-sized enterprises. We offer guidance and assistance needed to navigate challenges and explore opportunities for growth. 

If you want to discuss the topics raised in this blog or comment, please feel free to contact gabhan@yeppis.fi or patrick@yeppis.fi, and we will be happy to talk with you.