TALLINN - Around 20,000 new companies a year have been founded in Estonia over the past three years, and every third new entrepreneur is a woman, while every fifth founder of a new company has had experience with entrepreneurship before, reports Public Broadcasting citing a study on new companies compiled by SEB.
Forty-three percent of the founders of companies are in the 26-35-year age group and half of them have higher education, or they are acquiring it. The key elements for starting a company are personal belief, self-confidence to start and succeed as an entrepreneur.
“The fear of business failure and readiness to enter business at different ages is changing. The profile of people starting with business is becoming wider and the starters’ knowledge base is becoming more mature. It is not an unimportant fact that every third new company in Estonia today is founded by a woman, which is a very positive trend,” said SEB’s business innovation leader Mart Maasik.
A new direction, the study says, is for specialists moving to business, which creates new challenges for their existing employers since, due to the deficit of experienced professionals, the solution is often that an employee is replaced with the role of service provider. Thus employee relationships become more flexible, people’s skills more widely enforceable and operations more efficient.
As compared to Latvia and Lithuania, 4,000 and 7,000 companies more are created, respectively, in Estonia each year. The technical simplicity of starting a company, and state measures, definitely helps, but they are not the most important parts of an environment favoring business activity.