SMEs’ financial situation stagnant during autumn

The recent Yrittäjägallup survey shows that SMEs’ financial situation has not improved during the autumn. Of SMEs, 48% responded to the Yrittäjägallup survey by saying that the company’s financial situation was good, while 19% said it was bad. The situation is roughly the same as in the August survey.

The picture is brightest among companies employing more than ten people and in industry. The picture is grimmest among single-person business owners, other services, and in Uusimaa.

In August the situation was weakest in the retail sector, and now in other services. In particular, the situation of female business owners has weakened over the autumn.

“The results show that for SMEs, the economy has not improved over the autumn. The results also reflect the VAT rise. That has hit service sectors and female business owners particularly hard,” says Mikael Pentikäinen, CEO of Suomen Yrittäjät, the Finnish SME association.

The Yrittäjägallup survey was answered by 1,054 representatives of micro-enterprises and SMEs between 7 and 13 Nov. Of the respondents, 45% were single-person business owners.

Future outlooks not improved

No improvement has occurred in economic outlooks either. Among SMEs, 32% believe that the situation will improve over the next year (33% in August) and 19% believe it will weaken (20% in August).

The strongest belief in improvement is found in the retail sector, which, however, also has the strongest belief in the situation deteriorating. Female business owners’ outlooks are more pessimistic than their male counterparts’.

“I fear that Donald Trump’s election as US president and the SAK union’s disproportionate pay-rise demands have not made things easier. However, they are not yet visible in these results,” CEO Pentikäinen says.

Earning level down

Business owners’ earnings have also significantly fallen over the year. In April 2024, 31% said they earned less than €30,000 per year. Now, that proportion is 37%.

Single-person business owners have the lowest earnings. Of them, 54% said they earned less than €30,000 per year.

SMEs continue to have difficulties finding skilled employees. Almost one respondent in five (19%) says that they have difficulties finding skilled labour at the moment. The proportion has been almost the same since the start of the summer. 

The most difficulties are faced by companies employing more than five people and by industry. The situation is the most difficult in Western Finland and the easiest in the capital region.

A lack of skilled workers is a barrier to growth for 22% of respondents. That level has remained roughly the same since the start of the summer.

“Even though the economy is weak, many SMEs have difficulties finding workers. That is why reforming the labour markets and promoting labour migration are important issues for business owners,” Pentikäinen says.

Read the results in more detail here.

Read also: Business owners’ financial counselling service contacted in the thousands