Russia, energy prices and trade unions seen as brakes on investment, business owner survey shows

Reliable government agencies received the most positive mentions.

The Yrittäjägallup survey asked business owners for the first time about the largest brakes on investment.

The issues that most hampered companies’ desire to invest in Finland were Russia’s actions, the operations of the trade union movement, and the price of energy.

Functional logistics was given as the strongest incentive to invest in Finland. Reliable government agencies received the most positive mentions. That was noted in 39% of respondent businesses’ answers. Other factors which make Finland a more attractive investment for businesses were the predictability of the tax system and functioning capital markets.

“These strengths currently bring Finland a valuable competitive advantage from the investment perspective. That means there is even more reason to cherish them,” President and CEO of Suomen Yrittäjät Mikael Pentikäinen says.

The results show that large companies consider the trade union movement the most significant brake on investments. That is the view of 46% of businesses.

“It is sad and regrettable that the trade union movement weakens the business owners’ desire to invest in Finland. The trade union movement should be an incentive to invest, not a barrier. Above all else, it is in the interests of Finnish workers that businesses invest in Finland,” Pentikäinen says.

He hopes that the results of the survey will direct the trade unions towards critical self-reflection.

Pentikäinen says that many businesses are also deeply concerned about energy prices, the reckless growth of government debt, and the cost of labour. Industrial businesses are particularly concerned about the sharp increase in government debt.

Russia’s actions were named as a brake on investment by 48% of respondents, while 49% mentioned the price of energy.

“When there’s great disruption in the world, we have to put our own house in order, as we cannot influence what Russia does. Unfortunately, there are presently a lot of bad omens,” Pentikäinen says.