Municipalities split over business friendliness, Finnish entrepreneurs survey shows

Finnish municipalities are increasingly divided into business-friendly and less friendly categories, according to the municipality barometer published on Wednesday by the Federation of Finnish Enterprises.

The survey, conducted by Taloustutkimus, received responses from nearly 12,000 entrepreneurs across all Finnish municipalities. The result is significant, the federation said, as municipalities have recently been given greater responsibility for employment and business vitality.

“Entrepreneurs want to be actively involved in developing their home municipality,” federation chair Petri Salminen said, noting that the high response rate shows how much entrepreneurs care about their local area.

On a scale of one to five, the average score given by respondents was 3.14. Among large municipalities (over 50,000 inhabitants), the top three were Hämeenlinna, Kotka and Jyväskylä. In the medium category (10,000–50,000), Kauhava, Kempele and Nokia led. Among small municipalities (under 10,000), Utajärvi, Karstula and Vehmaa ranked highest.

In Central Finland, 769 entrepreneurs responded, giving an average of 3.21, slightly above the national figure. The region placed sixth among all Finnish provinces. Standout municipalities in the area included Hankasalmi, Karstula, Muurame, Uurainen and Toivakka, while Jyväskylä, Viitasaari, Keuruu and Konnevesi also scored above average.

Sanna-Mari Jyräkoski, managing director of the Central Finland branch of the federation, welcomed the results but expressed concern. “The drop in business services from third to sixth place worries us,” she said.

Nationally, entrepreneurs voiced concern about startups. Frida Sigfrids, an economic policy expert at the federation, said early-stage entrepreneurs need diversified support from their home municipality. “Funding and investment advice, along with smooth permit processes, are prerequisites for starting a business,” she said.

Sigfrids attributed the polarisation to narrowing fiscal room in some municipalities. “It’s about the tightening of municipalities’ financial flexibility,” she said.

Tags: Entrepreneurship, Business climate, Finland