Nordic Entrepreneurship
Survey 2015
The Nordic entrepreneur
At EY, we see the importance of entrepreneurship and its role in supporting
innovation and growth in the Nordic region. Tomorrow’s multinational companies
may very well be found among today’s high-growth entrepreneurs. It is therefore
important to create a framework that allows these companies to develop and
grow, if the Nordic region is to play a continued role in the global economy.
Supporting the development of small and medium-sized entrepreneurs can in this
respect be one of the means to uphold the Nordic model of society, as the future
presence of companies – large and small – will continue to contribute to Nordic
innovation, growth and prosperity.
To promote entrepreneurship, we need to understand what drives entrepreneurs.
This survey is aimed at improving our understanding of Nordic high-growth
entrepreneurs and how they achieve their success.
All the entrepreneurs in this survey are leading high-growth companies, and this
report seeks to uncover how they have managed to grow and create value for
themselves and society in general.
The entrepreneurs in this survey have all participated in the EY Entrepreneur
Of The Year program. Extensive interviews with these candidates have given us
unique insights in the strengths and challenges faced by Nordic entrepreneurs.
We wish to share some of this knowledge with you and hope to contribute to the
ongoing debate on how to foster more entrepreneurial activity, innovation and
growth in the Nordic countries.
January 2015
Juha Hilmola
EOY Leader
Finland
2 | Nordic Entrepreneurship Survey | 2015
Joakim Falck
EOY Leader
Sweden
Carsten Collin
EOY Leader
Denmark
Terje Andersen
EOY Leader
Norway
Content
Introduction and background
Who is the Nordic entrepreneur?
Nordic entrepreneurs are risk-neutral
Few are likely to hand over the business
to a family member
Motivation – why become an entrepreneur?
Challenges during start-up and in the future
Entrepreneurs and support from the
public sector
Growing at home or abroad?
Growth in revenue
People is the key to success
4
7
8
9
10
11
14
16
18
18
Nordic Entrepreneurship Survey | 2015 3
Introduction
and background
”EY Entrepreneur Of The
Year is the world’s most
prestigious business award
for entrepreneurs.”
The Nordic entrepreneurship survey is based on interviews with the candidates
for the 2014 EY Entrepreneur Of The Year program in all the Nordic countries.
We have interviewed 163 Swedish, 157 Danish, 55 Finnish and 53 Norwegian
entrepreneurs who all lead a high-growth firm. The main purpose of the
interviews is to select winners in the Nordic EY Entrepreneur Of The Year
programs. However, the interviews are also a tool to gather knowledge about
the successful entrepreneurs, their background, motivation, ambition, aim and
challenges.
These data have great value – for EY and for the business world in general.
And we aim to gather these data consistently over time, giving ourselves the
opportunity to create time-series analyses and benchmark analyses across
countries.
In the following, we present some background information about the
Entrepreneur Of The Year program and about the entrepreneurs in our survey.
EY Entrepreneur Of The Year
EY Entrepreneur Of The Year is the world’s most prestigeous business award
for entrepreneurs. The unique award makes a difference by encouraging
entrepreneurial activity among those with potential, and recognizing the
contribution of people who inspire others with their vision, leadership and
achievement. As the first and only truly global award of its kind, EY Entrepreneur
Of The Year celebrates those who are building and leading successful, growing
and dynamic businesses, recognizing them through regional, national and global
awards programs in more than 60 countries.
The finalists and winners represent an elite group of business leaders who have
built exceptional firms, both in their local markets and globally. These businesses
are typically dominant players in their industries and have achieved long-term
success by adapting quickly to changing circumstances.
The candidates are assessed according to the following set of criteria:
• Entrepreneurial spirit
• Financial performance
• Strategic direction
• Global impact
• Innovation
• Personal integrity and influence
For more information about EY Entrepreneur Of The Year, please visit our
website: www.ey.com/eoy
4 | Nordic Entrepreneurship Survey | 2015
The entrepreneurs in the Nordic survey
The entrepreneurs – and their high-growth firms – have first of all been chosen on
the basis of objective selection criteria. The selection criteria vary slightly across
the three Nordic countries. Hence, the definition of a high-growth firm is not
completely stringent. But there are one important common denominator:
all of the firms are owner-managed.
The entrepreneurs that meet the objective criteria are invited to participate in the
national EY Entrepreneur Of The Year award program. All Nordic entrepreneurs
were interviewed using the same extensive questionnaire. The questionnaire
covers the following subject matters: the firm, the entrepreneur, innovation,
the employees, finance and investment, the market, governance, business
risk, strategy and general accounting.
The entrepreneurs in the Nordic survey
•In Finland, a high-growth firm is defined as a limited or
private, owner-managed firm with at least 10 employees
and EUR 3,5m in turnover, positive final results and positive
growth in final results. Also, the firm has to be at least
three years old.
•In Sweden, a high-growth firm is defined with at least
10 employees or 10 MSEK in turnover, positive final results
and positive growth in final results. Also, the firm has to be
at least five years old (three years for the category, rising
star) and have an ownership interest of 10%.
•In Denmark, a high-growth firm is defined as a limited or
private, owner-managed firm with at least 20 employees,
a growth rate of 15% in turnover or gross profits, positive
final results, positive equity capital and employment
growth. Also, the firm has to be at least three years old.
•In Norway, a high-growth firm is defined as a limited or
private, owner-managed firm with at least 20 employees
and NOK20m in turnover, a two year growth rate of 20%,
positive final results, positive equity capital and employment
growth. Also, the firm has to be at least three years old.
Nordic Entrepreneurship Survey | 2015 5
The Nordic entrepreneur:
Fun facts
27
EY Entrepreneur
Of The Year.
The entrepreneurs are
34
91 %
9%
428
How was your business founded?
Nordic EOY candidates in 2014
64 %
61 %
have not started
a business before
started the
business alone
or together with
someone else
Education:
took over an existing business or the family business
36 %
6 | Nordic Entrepreneurship Survey | 2015
Primary school
13 %
High school
19 %
Short-cycle higher
education (up to three
years)
25 %
Long-cycle higher
education (more than
three years)
41 %
Gender distribution:
years old when taking over
or starting their business
The business´ age
Who is the Nordic
entrepreneur?
What makes one entrepreneur a success might very well not work for another,
but many entrepreneurs do have some common traits. For instance, several
studies have indicated that people with prolonged studies and an academic
degree are less likely to become entrepreneurs. This is in stark contrast to
the results of this year’s Nordic Entrepreneurship Survey, which shows that
candidates in the EY Entrepreneur Of The Year program in the Nordic countries
are noticeably well educated. 66% have some kind of higher education after
graduating from high school. This challenges the common belief that academic
education is a weakening factor when it comes to encourage entrepreneurial
behavior. Also, the Nordic entrepreneur is not a risk-taker, which contradicts
the common perception that successful entrepreneurs are more inclined to take
risks.
”Compared to previous years’
surveys, in 2009 and 2010,
entrepreneurs seem slightly
more willing to take risks.”
The companies in our survey are on average 27 years old. This corresponds
well with other studies that show that it takes approximately 25 years for a
company to mature. Most of them operate within industrial production and trade,
real estate and information and communications technology (ICT) services.
The Nordic entrepreneur is independent, relying on their own funding, and the
majority has started the business alone or together with others.
To avoid confusion in the following, please note that questions where
respondents are asked to agree or disagree, the two categories “Agree” and
“Fully agree” are considered as a positive answer and combined in the text, but
the tables will show them as two separate categories.
Nordic Entrepreneurship Survey | 2015 7
Nordic entrepreneurs are
risk-neutral
According to the survey, the majority of the Nordic entrepreneurs consider
themselves to be risk-neutral. The survey shows that 62% have a risk-neutral
attitude, a number that has remained about the same since 2010, with only a
small 2% increase. The number of risk-averse entrepreneurs has fallen with about
10% since 2010, which corresponds well with the slight increase in the number of
risk-neutral and risk-seeking entrepreneurs.
Comparing the Nordic countries, we see a difference in risk willingness between
them. Generally, while risk-seeking activity is on the rise, it decreased in Denmark
and Norway after 2008. However, the Swedish entrepreneur has remained
reasonably risk willing. In this year’s survey, some thirty percent of the Swedish
respondents consider themselves willing to take risks, a number more or less
unchanged since 2008. The financial crisis could be one of the explanations
for the immediate fall in risk-seeking behavior in Denmark and Norway after
2008. But it doesn’t explain why the Swedish entrepreneurs remain unchanged
in their risk willingness, as Sweden has been economically constrained to the
same degree as the other Nordic countries. This means that the reason for this
more insistent risk profile may be found in the mind-set and culture of Swedish
entrepreneurs.
What best describes your approach to business risk?
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
Low (Risk-adverse)
Norway
Sweden
Medium (Risk-neutral)
Finland
Denmark
High (Risk-taker)
Nordic
50 %
45 %
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5%
0%
8 | Nordic Entrepreneurship Survey | 2015
Look after your business
• Have you identified the biggest business risks?
• Do you have some economic leeway?
• Are you aware of both financial and human factors?
• Do you know where to take risk and where to be careful?
• Do
you haveSale/transition
the extra energy
and
for
Family
succession
to
Sale
to capacity
another
Salerisk
til capital fund
another
person
(fx.
company
management?
other management)
• Have you established sufficient internal control?
Denmark
Norway
Finland
Sweden
Nordic
• Do you have a robust and effective risk management?
Stock exchange listing
Few are likely to hand over
the business to a family member
More than 60% of the entrepreneurs have started the business by themselves
or in collaboration with others, while almost one in five Nordic entrepreneurs
80 %
inherits the
business from a family member. But in this year’s selection, only 14%
of the entrepreneurs
plan to hand over the business to a family member. Selling
70 %
the business
to
another
company is the most popular scenario, followed by selling
60 %
to a capital fund.
50 %
40 %
30 %
20 %
10 %
0%
Low (Risk-adverse)
Medium (Risk-neutral)
High (Risk-taker)
Which of the following succession-possibilities do you
Denmark
Finland
Sweden
Nordic
consider to beNorway
most likely
scenario?
” In some cases a generational
shift leads to a complete
reorganization of the business.
But the next generation rarely
brings new financing, new
clients, knowledge about new
markets or new technology.
Another business or a capital
fund might add all this to a
business.”
50 %
45 %
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5%
0%
Family succession
Norway
Sweden
Sale/transition to
another person (fx.
other management)
Sale to another
company
Denmark
Finland
Sale til capital fund Stock exchange listing
Other
No considerations
Nordic
80 %
As the proportion of Nordic entrepreneurs who have taken over their business
70 %
from their family has declined steadily the past years, family succession can no
60 % be seen as the obvious choice.
longer
50 %
The
40 %majority of the Nordic entrepreneurs believe they will transfer the
ownership
of their business in 5-10 years or more.
30 %
20 %
10 %
0%
Locating and hiring the right Understanding legislation and
employees
rules
Norway
Sweden
Finland
Denmark
Nordic
Getting in contact with and
selling the
idea/product/service to
investors
Obtaining finance
Selling the business'
products/services to
customers
Finding and utilizing strategic partners
(joint ventures, joint R&D, internationalisation)
Nordic Entrepreneurship Survey | 2015 9
Estab
0%
Falling
Norway
Unchanged
Sweden
Finland
1-5 %
Denmark
5-15 %
15-25 %
Nordic
Motivation – why become
an entrepreneur?
50 %
45 %
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5%
0%
Even though entrepreneurs are a very diverse group of people, there are some
common traits that characterize them. One of those is a strong need to realize
own ideas on how to improve an existing service, solution or process. Among
the Nordic entrepreneurs 47% highlight this as the main motivation for starting
Falling
1-5with
% the definition5-15
% entrepreneur15-25
or taking overUnchanged
a business. This fits well
of an
as %
offers an innovative
Denmark solution
Norway someone
Nordic to a problem.
Sweden whoFinland
70 %
Another typical driver of entrepreneurship is the strong wish to be independent.
39% of the entrepreneurs were motivated by independence. This is quite the drop
from the results from the Nordic Entrepreneurship Survey conducted in 2010,
where more than 60% of the Nordic entrepreneurs highlighted independence
as their main motivation. However, Danish entrepreneurs are more driven by
independence than the others; 54% are motivated by independence.
60 %
50 %
40 %
30 %
20 %
10 %
0%
Employing the right
people
Fully disagree
Innovation - e.g. providing
a unique product or
strategy/business model
Disagree
Access to funding
Neither disagree/agree
Agree
Working close with
clients/customers
Fully agree
Why did you set up/ take over this business?
20 %
23 % 0 %
7%
I had an idea for a new product/service
To industrialize an existing patent (0%)
Other
39 %
47 %
34 %
To realize my own ideas on how to improve
an existing service/solution/process
I had experience from the same industry
I wanted to become independent
To maintain a family tradition and create
value for my family
90 %
80 %
70 %
60 %
50 %
40 %
30 %
10 | Nordic Entrepreneurship Survey | 2015
20 %
10 %
0%
Thinking global - f
internationalizati
Challenges during start-up
and in the future
There are many challenges for the entrepreneurs in their effort to grow their
companies. In the start-up phase, 61% of the Nordic entrepreneurs agree or fully
agree that the biggest challenge was to locate and hire the right employees.
However, only 30% of Norwegian entrepreneurs say finding the right employees
was a challenge, and among them only 7% fully agree to this being the biggest
challenge in the start-up phase. Compared to a Nordic average of 27% it might
seem like it is somewhat easier to locate and hire the right employees in Norway
than in the other Nordic countries.
Norwegian entrepreneurs also seem to have an easier time establishing a
business organization, with only 4% agreeing or fully agreeing that this was
challenging, compared to a Nordic average of 38%. Finland seems to find selling
the business’ products or services to customers more challenging than the rest of
the Nordic countries.
What were the biggest challenges during the business´ start-up phase?
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
Locating and hiring the right Understanding legislation and
employees
rules
Norway
Sweden
Finland
Denmark
Getting in contact with and
selling the idea/product/
service to investors
Obtaining finance
Selling the business'
products/services to
customers
Establishing the business
organization
Nordic
The right employees are not only the biggest challenge in the start-up phase;
76% of the Nordic entrepreneurs believe that locating and retaining key
employees will be their biggest challenge when they develop their business
100 %
further.9077%
of the Finnish entrepreneurs state that competitiveness is their
%
biggest 80
future
challenge, and 76% of the Danish believe that how to structure
%
70 %
their business
as it grows will be a big challenge.
60 %
50 %
40 %
30 %
20 %
10 %
0%
Home market
(FIN, DK, SE, NO)
Norway
Other Nordics
Sweden
Finland
Other Europe
Denmark
North America South and Central
America
Nordic
Asia/Oceania
Nordic Entrepreneurship Survey | 2015 11
Africa
ng and hiring the right Understanding legislation and Getting in contact with and
What arerules
the biggest challenges
likely to
employees
selling the
idea/product/service to
investors
Denmark
way
Finland
Sweden
Nordic
Establishing the business
finance
Selling the business'
be in Obtaining
the further
development
of the company?
organization
products/services to
customers
Finding and utilizing strategic partners
(joint ventures, joint R&D, internationalisation)
Cash flow - warehousing and ordering vs.
Payment from customers
Economic climate (domestic and global)
Lack of access to innovation/
R&D internally and externally
Strategic planning and market forecasting
Competitiveness (domestic and global)
Administrative burdens and
legislation (red tape)
Organizational issues (how to structure
the business)
Obtaining finance for further growth
Locating and retaining key-employees
0%
10 %
Norway
20 %
Sweden
30 %
Finland
40 %
50 %
Denmark
60 %
70 %
80 %
90 %
Nordic
The entrepreneurs seem to agree that the competition for candidates is high,
and that there is a skills shortage in the industry at the moment. This is
somewhat more prominent in Denmark than in the rest of the countries, where
78% agree with this statement compared to an average of 65% in the Nordics.
12 | Nordic Entrepreneurship Survey | 2015
100 %
Finding and utilizing strategic partners
(joint ventures, joint R&D, internationalisation)
Cash flow - warehousing and ordering vs.
Payment from customers
Industry/sector
Economic climate (domestic and global)
A large number of the
Nordic companies
operate within the
industrial production and
trade (retail and
wholesale) sectors,
which represent more
than 30% of the
companies. Real estate
and information and
communications
technology (ICT)
services are also
strongly represented,
while fewer companies
work within shipping,
transport and logistics,
oil and gas, and media
and entertainment.
Lack of access to innovation/
R&D internally and externally
Strategic planning and market forecasting
Competitiveness (domestic and global)
Administrative burdens and
legislation (red tape)
Organizational issues (how to structure
It seems that recruitment is at the top of the agenda when itthe
comes
to obstacles
business)
to entrepreneurship. This could be seen as evidence of a shortage of qualified
human capital, with the current labor market not meeting the requirements of
SMEs or large corporations. Consequently, while governments across the Nordic
Obtaining
finance
further and
growth
region have put much emphasis on improving
access
to for
finance
on reducing
administrative burdens (and with some success), our Nordic Entrepreneurship
Survey implies that the private sector would benefit from greater focus on
education and the attractiveness and openness of the Nordic labor market
vis-à-vis foreign employees.
Locating and retaining key-employees
0%
10 %
Norway
20 %
Sweden
30 %
Finland
40 %
50 %
Denmark
60 %
70 %
Nordic
To what extent do you agree in the following statements?
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
Norway
Sweden
There is a skills shortage in our industry at the moment
Finland
Denmark
Nordic
Competition for candidates with the right competencies is high
Our business is currently having difficulties attracting
employees with the right skills
90 %
80 %
70 %
60 %
Nordic Entrepreneurship Survey | 2015 13
80 %
9
Strategic planning and market forecasting
Competitiveness (domestic and global)
Entrepreneurs and support
from the public sector
Administrative burdens and
legislation (red tape)
Organizational issues (how to structure
the business)
The Nordic entrepreneur is a product of the Nordic countries and their societal
and economic characteristics. The Nordic welfare model is an important factor,
as itforrepresents
Obtaining finance
further growtha type of society which is characterized by a large public sector,
a high level of social security and economic equality.
The survey shows that the majority of the Nordic entrepreneurs feel that
Locating and retaining
key-employees
their local
municipality or region supports them in the future development of
their business. This is most significant when it comes to access to skilled labor
and infrastructure, where 64% and 46% of the entrepreneurs find the public
0%
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90 %
supportive, respectively. However, only one in four entrepreneurs agrees that
Denmark
Norway when
Finlandto regulations
Sweden
Nordic
their region is supportive
it comes
and the public service to
their business.
In general, it seems that Danish entrepreneurs feel that their local region is more
supportive of the development of their business compared to the other countries,
and particularly when it comes to operating costs other than taxation.
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
Norway
Sweden
Finland
There is a skills shortage in our industry at the moment
Denmark
Nordic
Competition for candidates with the right competencies is high
Our business is currently having difficulties attracting
Do
employees with the right skills
you feel that the business environment of your local
municipality/region is supportive of the future development of
your company?
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
Public service (quality
of service to business)
Norway
Sweden
Finland
Operating costs other
than taxation
Denmark
45 %
40 %
35 %
30 %
25 %
20 %
14 | Nordic
Entrepreneurship Survey | 2015
15 %
10 %
Nordic
Regulation
Infrastructure
Access to skilled labor
100 %
Strategic planning and market forecasting
Competitiveness (domestic and global)
Administrative burdens and
legislation (red tape)
Organizational issues (how to structure
the business)
How can the public sector support entrepreneurs in a more efficient way?
The entrepreneurs agree that tax incentives and incentives to local governments
that are supportive of entrepreneursObtaining
will befinance
the most
efficient
for further
growth way for the
public sector to support entrepreneurs (56% and 55% respectively). Among the
entrepreneurs, 49% also think that the public sector could help by facilitating
more meeting places between businesses and entrepreneurs.
Locating and retaining key-employees
0%
10 %
Norway
20 %
Sweden
30 %
Finland
40 %
50 %
Denmark
60 %
70 %
80 %
90 %
Nordic
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
Norway
Sweden
Finland
There is a skills shortage in our industry at the moment
Denmark
Nordic
Competition for candidates with the right competencies is high
Our business is currently having difficulties attracting
How do employees
you think
public
sector stakeholders could support
with the
right skills
entrepreneurs in a more efficient way than today?
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
Public service (quality
of service to business)
Norway
Sweden
Finland
Operating costs other
than taxation
Denmark
Regulation
Infrastructure
Access to skilled labor
Nordic
45 %
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5%
Nordic Entrepreneurship Survey | 2015 15
100 %
10 %
0%
Public service (quality
of service to business)
Norway
Sweden
Operating costs other
than taxation
Finland
Denmark
Regulation
Nordic
Infrastructure
Access to skilled labor
Growing at home or abroad?
45 %
40 %
35 %
30 %
25 %
Should a business think beyond the home market to be successful? Compared
to the 2010 survey, more entrepreneurs seem to focus on the home market.
Among the Nordic entrepreneurs, 53% have an ambition of obtaining success
either in their local region or nationally, while 42% hope to become an
international export business or international group.
20 %
15 %
10 %
5%
0%
By establishing more
government-funded
entrepreneur programs
By offering tax incentives
By supporting start-ups with By arranging more meeting By arranging more meeting By offering incentives to local
access to facilities and
places between academia and places between businesses
government supportive of
Which
statements describes
most accurately
your
property atof
low the
cost following
entrepreneurs
and entrepreneurs
entrepreneurs
personal ambition for the business’ development and future growth?
50 %
45 %
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5%
0%
Obtain growth and profitability in my local area
Norway
Sweden
Finland
Denmark
Become an important national player
Become an international export business
Become a major international group
Nordic
100 %
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
However, Finnish entrepreneurs are far less focused on becoming important
national players than the rest of the Nordic countries. They seem more driven by
becoming a major international group compared to the others. The table below
shows that Finnish entrepreneurs get a larger portion of their revenue from
abroad than the rest of the Nordic countries, which might explain their focus on
North
South andmarket
Central Asia/Oceania
theAmerica
international
rather than justAfrica
the home market.
Top 5 barriers to
internationalization
Home market
Other Nordics
• Market
penetration
in Other Europe
(FIN, DK, SE, NO)
foreign
markets
Denmark
Norway
Finland
Sweden
Nordic
America
• Competition in international
markets
70 %
• Developing an international
sales organization
60 %
50 %
40 %
Before deciding to explore new markets
• Establishing strategic
partnerships in key markets
20 %
30 %
• Experience in international
marketing/sales
Falling
Unchanged
10 %
0%
Norway
Sweden
Finland
Denmark
50 %
45 %
40 %
35 %
30 %
16 | Nordic Entrepreneurship Survey | 2015
25 %
20 %
15 %
1-5 %
Nordic
• Do you want to run your business in new markets in foreign countries?
• Are you familiar with the tax conditions – for your business and
employees?
• Do you need to form local partnerships?
5-15 %
15-25 %
Over 25 %
• How well do you know the cultural differences between your home
market and the new one?
• Have you considered the fact that tax also includes VAT, customs and
duties?
• Have you chosen the best ownership structure for your business
– at home and abroad?
• Do you have a well-functioning sales organization?
30 %
20 %
80 %
10 %
70 %
0%
60 %
50 %
40 %
30 %
Locating and hiring the right Understanding legislation and
employees
rules
Norway
Finland
Sweden
Denmark
Getting in contact with and
selling the idea/product/
service to investors
Obtaining finance
Selling the business'
products/services to
customers
Nordic
20 %
10 %
0%
On which geographical markets does your company
Locating and hiring the right Understanding legislation and
generate
its revenue today?
employees
rules
100 %
Norway
Finland
Sweden
Denmark
Getting in contact with and
selling the idea/product/
service to investors
Obtaining finance
Selling the business'
products/services to
customers
Nordic
90 %
80 %
70 %
60 %
50 %
40 %
30 %
20 %
100 %
10 %
90 %
0%
80 %
Home market
Other Nordics
Other Europe
North America South and Central Asia/Oceania
70 %
(FIN, DK, SE, NO)
America
60 %
50 %
Denmark
Norway
Finland
Sweden
Nordic
40 %
30 %
20 %
In general,
the majority of the Nordic entrepreneurs’ revenue comes from the
10
%
home market. A full 79% of the Nordic entrepreneurs say that they generate
0%
their revenue
on the homeOther
market.
Most ofOther
the entrepreneurs
expect
this trend
Nordics
Europe
North
America
South and Central Asia/Oceania
90 % Home market
to continue
over
the
next
three
years,
with
slight
increases
in
some
international
(FIN, DK, SE, NO)
America
80 %
markets,
particularly other Nordic countries, North America and Asia/Oceania.
70 % Norway
Denmark
Finland
Sweden
Nordic
60 %
Africa
Africa
On
geographical markets does your company
50 which
%
generate
its
revenue in three years?
40 %
30 %
20 %
90 %
10 %
80 %
0%
70 %
60 %
50 %
40 %
Home market
(FIN, DK, SE, NO)
Norway
Other Nordics
Sweden
Finland
Other Europe
Denmark
North America South and Central
America
Asia/Oceania
Africa
Nordic
30 %
20 %
10 %
0%
Home market
(FIN, DK, SE, NO)
Norway
Other Nordics
Sweden
Finland
Other Europe
Denmark
North America South and Central
America
Asia/Oceania
Africa
Nordic
This focus on the home market might be explained by the fact that the Nordic
entrepreneurs see several barriers to obtaining international success. See the top
five barriers in the left hand margin.
Nordic Entrepreneurship Survey | 2015 17
10 %
entrepreneur programs
5%
property at low cost
entrepreneurs
and entrepreneurs
en
0%
Obtain growth and profitability in my local area
Norway
Sweden
Denmark
Finland
50 %
45 %
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5%
0%
Become an important national player
Become an international export business
Nordic
Growth in revenue
100 %
90 %
80 %
70 %
60 %
50 %
40 %
Most of the Nordic entrepreneurs believe that their revenue will grow
30 %
from between 5-15% or more than 25% over the next three years. Swedish
20 %
are the most positive, with 60%
aiming for a growth of over
10 % growth and profitability in my local area entrepreneurs
Obtain
Become an important national player
Become an international export business
25%, compared to a Nordic average of 31%.
0%
Denmark Other
Norway Home
Sweden
Nordic
market Finland
Other Nordics
Europe
North America South and Central Asia/Oceania
Africa
(FIN, DK, SE, NO)
America
Norway
100 %
90 %
80 %
70 %
70 %
6060
%%
50 %
5040
%%
4030
%%
20 %
3010
%%
0%
20 %
10 %
0%
Sweden
Home market
(FIN, DK, SE, NO)
Norway
Other Nordics
Sweden
Falling
Norway
Finland
Finland
Finland
Become a maj
Denmark
Nordic
How much
do
you predict your company will grow (in revenue)
over the next 3 years (%)?
Other Europe
Denmark
Unchanged
Sweden
Become a maj
North America South and Central
America
Africa
15-25 %
Over 25 %
Nordic
1-5 %
Denmark
Asia/Oceania
5-15 %
Nordic
70 %
As their revenue grows, the entrepreneurs will need more qualified labor. 39%
of the entrepreneurs predict they will expand their workforce with 5-15% over
the next three years. Here too, Sweden stands out, with 40% of the Swedish
entrepreneurs predicting a growth of more than 25%, compared to a Nordic
average of 19%.
60
50 %
45 %
50 %
40 %
40
35 %
%
30 %
%
30
25 %
20 %
20 %
15 %
10
10 %
0%
5%
0%
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
70 %
60 %
Norway
Falling Sweden
Finland
Unchanged
How much
company
will
employees)
1-5 do
% you predict
5-15your
%
15-25
% grow (inOver
25 %
over
the
next
3
years
(%)?
Denmark
Nordic
Norway
Finland
Denmark
Falling
Unchanged
Sweden
15-25 %
Over 25 %
45 %
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5%
0%
Falling
Unchanged
1-5 %
Access to funding
Employing the right Innovation - e.g. providing
Norway
Finland
Sweden
Nordic
people
a unique
product orDenmark
strategy/business model
Fully disagree
Disagree
Neither disagree/agree
50 %
30 %
5-15 %
Nordic
50 %
18 | Nordic Entrepreneurship Survey | 2015
40 %
1-5 %
Agree
5-15 %
Working close with
clients/customers
Fully agree
15-25 %
Over 25 %
Thinking global - fast
Networking and
internationalization
professional relationships
Having
50 %
45 %
40 %
35 %
30 %
25 %
20 %
15 %
10 %
5%
0%
Obtain growth and profitability in my local area
Norway
Sweden
Finland
Denmark
Become an important national player
Become an international export business
Nordic
This can be a challenge, as the entrepreneurs seem to agree that there is a skills
shortage in the industry at the moment and high competition for candidates.
And the
seem well aware of this. As mentioned, 76% of the
100 entrepreneurs
%
%
Nordic90entrepreneurs
believe that locating and retaining key employees will be
80 %
their biggest
challenge when further developing their business.
70 %
60 %
%
As the50financial
crisis and the following years have left many unemployed, also in
40 %
the Nordic
countries, lack of qualified labor may seem contradictory. But many of
30 %
the businesses
depend on specific and rare competencies, which leave them with
20 %
10 %number of qualified candidates. Whatever the reason, this challenge
a limited
%
may be0posing
a real risk for their future success.
Home market
Other Nordics
Other Europe
North America South and Central Asia/Oceania
(FIN, DK, SE, NO)
America
Norway
Sweden
Finland
Become a major international group
Denmark
”The Nordic entrepreneur
is independent. According
to the survey, 67% of the
entrepreneurs say their
primary source of financing
is their own funding, followed
by bank funding (22%).”
Africa
Nordic
70 %
People is the key to success
60 %
50 %
40 %
30 %
20 %
10 %
0%
Unchanged
1-5 %that employing
5-15 %the right people
15-25 %
The majority ofFalling
the Nordic entrepreneurs
believe
Denmark
Norway
Finland This
Sweden
Nordic
is the number
one key
to success.
is closely
followed by innovation and a
close relationship with their clients. Only 29% think that a global mindset and
internationalization
is important, which corresponds well with the fact that the
50 %
Nordic
main market is their home market.
45 entrepreneurs’
%
Over 25 %
40 %
35 %
30 %
25 %
20 %
% in your opinion the ”key to success”?
What15is
10 %
5%
0%
Falling
Norway
Unchanged
Sweden
Finland
1-5 %
Denmark
5-15 %
15-25 %
Over 25 %
Nordic
70 %
60 %
50 %
40 %
30 %
20 %
10 %
0%
Employing the right
people
Fully disagree
Innovation - e.g. providing
a unique product or
strategy/business model
Disagree
Access to funding
Neither disagree/agree
Agree
Working close with
clients/customers
Thinking global - fast
internationalization
Networking and
professional relationships
Having a professional
board
Fully agree
Nordic Entrepreneurship Survey | 2015 19
EY | Assurance | Tax |
Transactions | Advisory
About EY
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transaction and advisory services.
The insights and quality services we
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In so doing, we play a critical role in
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EY Entrepreneur Of The Year
– Nordics
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and may refer to one or more, of
the member firms of Ernst & Young
Global Limited, each of which is a
separate legal entity. Ernst & Young
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© 2015 EYGM Limited
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This material has been prepared for
general informational purposes only
and is not intended to be relied upon as
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advice. Please refer to your advisors
for specific advice.
ey.com
Contacts
EOY Leader
Finland
EOY Leader
Denmark
Juha Hilmola
Carsten Collin
EOY Leader
Sweden
EOY Leader
Norway
Joakim Falck
Terje Andersen
E: [email protected]
M: +358405408963
E: [email protected]
M: +46 36 301032
20 | Nordic Entrepreneurship Survey | 2015
E: [email protected]
M: +4551582547
E: [email protected]
M: +47 979 50 707