Finland’s economy is at a crossroads. We cannot continue stimulating the economy with borrowed money in a situation where global trends, high costs and sluggish investments weigh on everyday life. At the same time, we cannot build the future on savings or cuts alone. Now is the right time to make choices that strengthen the economy sustainably and in the long term.
One of our greatest unused opportunities is still the full potential of the companies operating in this country – especially small and medium-sized enterprises. There are around 300,000 companies operating in Finland, of which more than 90 percent are SMEs. If each of these employed one more person, we would be talking about a significant employment effect, even several hundred thousand new jobs.
This is not a utopia. But it requires courage and honesty from us decision-makers – not more administrative burden, but practical solutions.
A model that encourages long-term employment
Current wage subsidy models and work trials have often remained temporary or been made bureaucratically burdensome. We need a model that lowers the employer’s threshold to hire and ties the support to a more permanent employment relationship.
I have proposed a stepped model in which the employer receives support only if the employment relationship is based on a genuine open-ended contract. For the first six months, the state would pay 50 percent of the support. After the probationary period, when 6 months have been completed, the employer is paid the remaining 50% in one lump sum. After this, the support would continue at 100 percent monthly until a full year has been completed.
This would not be mere subsidising, but responsible and results-based risk sharing – especially for those small and medium-sized enterprises for which hiring one person is a financially significant decision.
Public procurement – also the playing field for SMEs
Municipalities and wellbeing services counties are major purchasers. Unfortunately, current tendering models most often favour large operators who have the time and resources to respond to extensive calls for tenders. For SMEs, the doors too often remain closed already at the starting line.
This can be changed. Tenders can be sensibly broken down into smaller packages. We can introduce locality bonuses, which would give companies in the surrounding area a real opportunity to participate in tender competitions when the quality and price offered are competitive.
In addition, municipalities could have an important role in coaching and sharing procurement expertise – because entrepreneurs do not need separate forms of support, but a fair opportunity to get involved in competing.
Responsible taxation is a fair game – for everyone
One of the most burdensome injustices for entrepreneurship is that while SMEs responsibly pay their taxes to Finland, some large corporations avoid them through aggressive tax planning.
Taxation must be transparent and equitable. Finland has the opportunity to introduce a reporting model for its own tax footprint and support transparency that prevents abuse. We do not need to accept a situation where those who bear responsibility for employment and tax revenues simultaneously face the greatest administrative burden and uncertainty.
The purpose of regulation is to enable, not to prevent
One of the biggest everyday obstacles to entrepreneurship is still the complexity and interpretability of legislation. We need regulation that enables activity – not makes it harder. This applies in particular to part-time work, fixed-term employment and the operations of sole entrepreneurs.
Legislation must support clarity and stability. Part-time work must be possible to offer without fear that it will lead to unreasonable consequences. At the same time, sole entrepreneurs should be provided with a lighter administrative start-up phase, so that business growth can be focused on without fear of the suffocating effect of administrative bureaucracy.
Now we need solutions, not just ceremonial speeches
Supporting companies is not a threat to public finances – it is a prerequisite for them. When small and medium-sized enterprises are doing well, all of Finland can do better. Tax revenues grow, employment strengthens and people’s everyday lives stabilise.
At the same time, the public sector needs responsible and long-term solutions based on partnership, not confrontation. When an entrepreneur is given room to grow and hire, it ultimately benefits the whole society.
We must move from ceremonial speeches to action – create models that encourage, not punish. Let’s make Finland a country where entrepreneurship is an opportunity, not a risk. Now is the time to make policy that doesn’t just talk about growth – but enables it.
Source: Uusi Suomi
Markku Arvekari
Digital Transformation Expert
