Finland’s economy is at a crossroads. We cannot continue stimulating the economy with borrowed money in a situation where global economic cycles, high costs and sluggish investment 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 untapped opportunities is still the full potential of the companies operating in this country – especially small and medium-sized enterprises. There are about 300,000 companies in Finland, of which over 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 incentivises long-term hiring
The 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 phased 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 probation period, once 6 months have been completed, the employer is paid the remaining 50% in one lump sum. After that, the support would continue at 100 percent monthly until the completion of a year.
This would not be mere subsidising, but responsible and results-based risk sharing – especially for those small and medium-sized companies for which hiring one person is a financially significant decision.
Public procurement – a playing field for SMEs too
Municipalities and wellbeing services counties are major purchasers. Unfortunately, current tendering models most often favour large players who have the time and resources to respond to extensive requests for tenders. For SMEs, the doors too often remain closed already at the starting line.
This can be changed. Tenders can be broken down more sensibly into smaller entities. We can introduce local bonuses, through which companies from the surrounding area would have 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 in and compete.
Responsible taxation is a fair game – for everyone
One of the injustices that burdens entrepreneurship the most 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 to support transparency that prevents abuse. We do not need to accept a situation where those who bear responsibility for employment and tax revenues face the greatest administrative burden and uncertainty at the same time.
The purpose of regulation is to enable, not to prevent
One of the biggest everyday obstacles to entrepreneurship is still the complexity and ambiguity of legislation. We need regulation that enables activity – not makes it more difficult. This applies in particular to part-time work, fixed-term contracts and the activities 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 offered a lightened administrative initial phase, so that they can focus on growing the business without fear of the suffocating effect of administrative bureaucracy.
Now we need solutions, not just ceremonial speeches
Supporting businesses 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 become more stable.
At the same time, the public sector needs responsible and long-term solutions based on partnership, not confrontation. When entrepreneurs are given room to grow and hire, it ultimately benefits the whole society.
We must move from ceremonial speeches to action – create models that encourage rather than 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
