Have you ever wondered why many international companies want to do business in Finland? It is because Finland has good roads and internet and the people in Finland like things to be done in a reliable and efficient way. Starting a company in Finland is attractive, but it also has its own regulations, standards, and practical challenges that international companies do not think as important.
This article talks about what makes Finland a good place to do business, the challenges companies deal with, and how having the right local support can make your company grow more efficiently.
Why Business in Finland Attracts Foreign Companies
Finland has a very honest and stable economy and also is recognized as a digital frontrunner in Europe, with digitally advanced business, strong digital skills, and widely used e-government services, according to the European Commission’s Digital Decade report on Finland. The country has a skilled workforce, stable digital infrastructure, and laws are simple for starting a business. These things make business in Finland a good choice for companies that want to sell things in the Baltic markets.
Finland has great connections throughout Europe so it is very easy for a company in Finland to sell things to neighboring markets such as Estonia, Sweden and the rest of the Baltic regions.
The way people do things in Finland is also very straightforward. They like to get things done quickly. In Finland, people trust each other when they do what they say and meetings are also usually brief. International companies that understand this way of doing things can make connections with people in Finland.
Common Challenges When Starting Business In Finland
Finland has benefits as well as some downsides. The most common challenge that people face is the language barrier. Government procedures, official documents and contracts are often in Finnish and Swedish. Even though many Finnish professionals speak English this can still be a problem.
Also administrative tasks can be time consuming. If your company is from outside the EU you might not know how to register a business, obtain a business bank account or follow tax laws. It is necessary to plan ahead and get local advice as soon as possible to avoid delays.
Another challenge that many companies face is hiring people. It takes a lot of effort and expertise in finding the right people who can speak both the languages Finnish and English and at the same time know local labour law and creating a hiring process for the Finnish market.
Cultural differences are also important things to consider. In Finland business communication is more reserved compared to other European Markets. In meetings silence is common and doesn’t mean that someone disagrees. Understanding these cultural differences is very essential for businesses in order to build trust faster.
How Local Support Helps Companies Succeed
Due to these challenges many Companies choose to work with a local partner instead of trying to do everything by themselves from the start. This strategy allows a company to manage many things like market research, manage customer communication and doing all the paperwork while being flexible.
A local partner can help in ways, such as:
- Customer service and contact center support
- Multilingual support and HR support
- Market research and competitor analysis
- Administrative tasks
This kind of support is very useful for companies that are still figuring out how big of a presence they want in Finland. Companies can rely on outsourced support and scale up only when it makes sense instead of hiring a whole team immediately.
Katrium has been helping companies get into the Baltic markets for more than 16 years. Our business support services help companies to manage customer relationships, hiring and administrative tasks so that they can concentrate on growing their business.
Understanding Finnish Business Culture
Cultural differences can affect communication and cooperation. When you compare how people communicate in Finland to other countries, the Finnish way can seem really quiet. In Finland, people only speak up when they have something important to say. That’s why most of the time we may experience silence in the meeting but that doesn’t mean they disagree.
Decision making usually takes more time in Finland especially when a company needs to check or compare all the information carefully. International companies should not put unnecessary pressure on potential partners and customers. Both companies can understand each other and what they have to do if they use written agreements, clear deadlines, and fair expectations. Following up after a meeting is useful but communications should be clear and direct.
Business In Finland and Market Research
Before companies expand into Finland they usually invest in research to see what people in Finland want to buy,how much they are willing to pay and their competitors positioning. This is an important step where most companies also ignore but should not ignore because it can prevent a lot of costly mistakes in the future. Companies who want to expand in Finland should do this research so that they understand the market and make decisions.
Good market research gives answers to questions.
- Who are the existing competitors in the market?
- What do customers in FInland expect from the service quality?
There are also questions about differences:
- For example, are there differences between cities like Helsinki, Tampere, and Turku?
Knowing these details early helps companies to adjust what they offer before they enter the market. Understanding the market before entering the market is very important for companies that want to succeed in Finland.
Katrium’s market research services helps companies gather various kinds of information which includes customer surveys, stakeholder interviews, and competitor analysis which is done specifically for the Finnish market.
Outsourcing as a Smart Entry Strategy
For many companies that start a business in Finland, outsourcing can be a best option instead of doing everything by yourself. Outsourcing a business function also lowers the risks of hiring people before the company even knows if there is a demand in the market they are selling.
Katrium’s experience with international outsourcing shows that companies that enter markets like Finland get the most benefit when they outsource tasks such as customer support, recruitment and data collection first. This allows the core team to focus on strategy, product and long term planning while local experts manage day to day operations.
Final thoughts on Business in Finland
Doing business in Finland is a great option for companies that want a stable place to work in Northern Europe. Business in Finland has a lot to offer. However, in order to succeed you have to understand the culture, plan for all the requirements needed for administrative tasks and choose the right support at the right time.
Katrium can help if you want to do business in Finland but you do not know where to begin. Katrium has been helping companies in Finland and the Baltic region for more than 16 years. We can help you with customer service, recruitment, market research and business operations. Get in touch with Katrium today to talk about how Katrium can help you support your business in the Finnish market.