Clear message from large companies: Bureaucracy must be reduced to improve Finland's competitiveness
Finnish companies are concerned about the world organising itself into blocs and major countries leaning towards protectionism, according to OP's Survey of Large Corporations. Corporate executives consider the reduction of bureaucracy the most important measure to improve Finland's international competitiveness.
Large Finnish companies are operating in an uncertain international environment where geopolitical tensions cause significant concerns for business. In particular, being ignored in favour of companies from major countries such as China, the US, Germany and France has become a cause for concern for many large companies in Finland.
"Global markets and traditional value chains are transforming. According to OP's Survey of Large Corporations, the division of the world into blocs and the simultaneous increase of protectionism are threatening to half of large Finnish companies," says Katja Keitaanniemi, CEO of OP Corporate Bank.
For example, being ignored in favour of Chinese companies is recognised as a threat in every third large company, and in half the companies operating in the industrial sector. Being ignored in favour of companies from the US and major European countries was a concern for approximately one fifth of large companies.
"According to our survey, China in particular is currently considered a challenger to the competitiveness of large Finnish companies. At the same time, companies continue to be very uncertain of how India, which has become the most populous country in the world, will impact their company's business," says Keitaanniemi.
Streamlined official processes on top of wish list for improving competitiveness
Large companies consider the streamlining of official processes in Finland to be the most important preventive measure to ensure that companies do not get ignored by companies from larger countries. More determined interest rate cuts by the European Central Bank are considered the second most important measure. The reduction of regulation in Finland is the third most requested measure for increased competitiveness.
"In light of our survey, the message is clear: Finnish companies need smoother official processes and reduced regulation to keep up with the intensifying international competition. The troublesome processes of agencies and excessive bureaucracy in Finland and the EU have become the most significant obstacles to competitiveness. They also require companies to commit resources that could be used for developing business operations, internationalisation, investments and innovation," says Keitaanniemi.
The meaning and need for the streamlining of official processes and reduction of regulation are further intensified by the fact that an increasing share of large companies consider these measures to improve international competitiveness more than measures such as aid packages and tax relief from the Finnish government.
The results are based on OP's annual Survey of Large Corporations, which measures large Finnish company executives' views on business and economic developments. The survey results will be published in full in January 2025. A total of 207 senior executives representing 137 large Finnish corporations and large subsidiaries operating in Finland responded to the survey. According to their latest certified financial statements, the responding companies have a combined revenue of over 202 billion euros, and they employ over 431,000 people in total. The survey was conducted in autumn 2024. OP Financial Group carries out the Survey of Large Corporations in partnership with the Nordic Institute of Business and Society (NIBS) think tank founded by Aalto University professors.
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