Enterprises predicting a turnover increase of over 15 per cent next year were classified as optimistic. Whereas the results of the survey conducted among Estonia’s small and medium-size enterprises (SME) indicate a decline in the optimism of Estonia’s entrepreneurial circles, from 25 to 20 per cent, the drop was even more noticeable among enterprises in Pärnu County, from 33 to 17 per cent. County-wise, entrepreneurs in Harju County continue to be the most optimistic. In terms of sectors, an optimistic position is being maintained by the retail trade and industrial sectors, joined also by the construction sector, which ranked among the most pessimistic sectors last year.
“Today, enterprises are more cautious when it comes to the future. This is a response of the business environment to a situation where the European economy is looking for a new position of equilibrium ,” said Tiina Ormisson, Regional Director for SEB’s Western Region.
Activity on foreign markets continues, whereas investments plans have dried up
Year on year, Pärnu County entrepreneurs’ plans to invest have dropped markedly. Whereas 41 per cent were planning investments of over 30 000 euros for 2014, just 41 per cent are planning that level of input in 2015. However, Estonia continues to offer examples of actively investing entrepreneurial areas, which include Ida-Viru and Järva Counties for the second year in a row, with every fifth enterprise planning investments. Readiness to invest is lowest among enterprises in Valga County, where investments are being planned by one in ten enterprises only.
Entrepreneurs in Pärnu County continue to estimate that the export outlook is good, although the proportion of enterprises planning to enter new markets or expand on existing export markets has dropped slightly (from 33 to 30 per cent year on year).
“Since the survey did not encompass the large enterprises in the area, it is advisable to interpret the slightly lower export outlook for Pärnu County as mostly indicative. We were delighted to note that enterprises in our area rank 2nd in Estonia in terms of their plans to conquer new markets, and hopefully, when the European economy returns to growth in 2015, enterprises in Pärnu will be able to realise their potential in full,” noted Ormisson.
Compared to last year, fewer employees are being recruited, with the focus on innovation
Next year, the responding enterprises are planning to create almost 1,500 new jobs, which is an unexpectedly high figure considering the current economic situation. In Pärnu County, 22 per cent of enterprises are planning to recruit new employees next year, which is similar to the Estonian average (23 per cent). Last year, 30 per cent of entrepreneurs in Pärnu County were planning to create new jobs. The most active sectors where jobs are created in Pärnu County are construction, industry, and accommodation and catering. Only 4 per cent of enterprises, in both Estonia and in Pärnu County, foresee a decrease in the number of employees.
The number of enterprises in Estonia planning innovation (innovative activities are considered to include product or service development, training employees, reviewing one’s business model or other development activities) has risen from 59 to 73 per cent, with the innovation readiness indicators of enterprises in Pärnu being some of the highest in the country (ranking among the top five counties), as much as 75%.
ABOUT THE SURVEY:
This year, SEB ran a counselling project in October-November for the third time, in the framework of which the survey “Business Barometer 2015” was organised amongst SMEs in Estonia, mapping the expectations of enterprises for the next business year. The survey was responded to by 2,837 small and medium-sized enterprises. In Pärnu County, 219 enterprises completed the survey, placing it 3rd in terms of response rate, directly after enterprises in Harju and Tartu Counties. Services, administration, retail trade, industry and energy were the best represented sectors in the survey. Survey respondents from Pärnu County were most frequently enterprises operating in the accommodation and catering sectors.
For more information:
Julia Piilmann
Communications Manager
Marketing and Communications Division
SEB Pank
phone +372 665 5340
Mobile +372 512 4808
Address Tornimäe 2, 15010 Tallinn Estonia
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