Startup Surge: Why More People Are Risking It All to Launch Businesses Now
Table of Contents
- 1. Startup Surge: Why More People Are Risking It All to Launch Businesses Now
- 2. Economic Headwinds Fueling Innovation
- 3. The Renewable Economy: business Births and Deaths
- 4. Tax Changes and Business Closures
- 5. Real-Life Stories of Risk and Reward
- 6. The Rise of the “Hybrid Entrepreneur”
- 7. Looking Ahead: Embracing the Entrepreneurial Spirit
- 8. How is the youth demographic influencing Finland’s entrepreneurial surge?
- 9. finland’s Entrepreneurial Surge: Record Company Births, rising Deaths, and Youth Driving the New Wave
- 10. The Startup Explosion: Numbers don’t Lie
- 11. The Flip Side: Increased Business Failures
- 12. The Youthquake: A New Generation of Founders
- 13. Case Study: ICEYE – from Satellite Startup to Global Leader
- 14. benefits of a Thriving Startup Ecosystem
- 15. Practical Tips for Aspiring Finnish Entrepreneurs
A record number of new businesses are launching while others are closing their doors, a trend reflecting both economic challenges and surprising entrepreneurial zeal. More than 60,000 new companies were registered last year, an extraordinary figure driven by a complex interplay of factors, including job displacement and a growing desire for self-employment. This surge in entrepreneurship is reshaping the economic landscape, not just in Finland—were this trend is gaining traction—but globally.
Economic Headwinds Fueling Innovation
Economist roope Ohlsbom notes a familiar pattern: economic downturns often spur an increase in new company formations. high unemployment rates, like those experienced during recessions, frequently lead individuals to create their own opportunities. This phenomenon echoes historical trends, including the economic shifts of the 1990s and more recent crises, demonstrating a resilient spirit of self-reliance.
Many new entrepreneurs are motivated by necessity, seeking to create their own income streams in an uncertain job market.The rise of “side hustles” and small businesses delivering essential services, like meal kits, demonstrates this trend. According to a 2023 report by the U.S. Small Business Administration, nearly half of all small business owners started their ventures out of necessity.
The Renewable Economy: business Births and Deaths
professor Jarna Heinonen of the University of Turku views the simultaneous rise and fall of companies as a natural process of economic renewal. A dynamic economy requires the constant birth of new ideas and the shedding of outdated models. Finland, she argues, has historically struggled with a lack of dynamism, but that is now shifting, especially amongst younger generations.
Tax Changes and Business Closures
While new businesses are thriving, a notable number of established companies are also closing.A recent surge in bankruptcies, reaching levels not seen as 1997, isn’t solely due to economic struggles, but also influenced by recent tax policy changes. Specifically, the removal of a tax relief program for smaller businesses with turnovers between €15,000 and €30,000 led to a wave of closures as some owners decided to discontinue operations. This highlights the crucial role of governmental policy in supporting small and medium-sized enterprises.
Real-Life Stories of Risk and Reward
Aivar Kalda,a former roof inspector,recently launched his own company specializing in roof inspections and repairs. Despite the challenging conditions in the construction industry, Kalda was spurred by a desire for autonomy and the prospect to apply his decades of experience on his own terms, utilizing new technologies to pinpoint leaks and structural issues.
Tommi Kalenius, a music producer, is also venturing into the startup world with a music-tech company aimed at streamlining music licensing and usage rights for media professionals.Leveraging his industry expertise,Kalenius is building a platform designed to connect creators with a broader range of musical options while ensuring fair compensation for artists.
Eveliina Elomaa, with a Master’s degree in economics, is embarking on a career as a wellness coach after founding her own coaching firm. Driven by a passion to help others and an understanding of the prevailing job market difficulties, Elomaa is building a network and refining her business model, confident in her ability to make a positive impact.
The Rise of the “Hybrid Entrepreneur”
A growing trend involves “hybrid entrepreneurship”, where individuals balance full-time employment with owning and operating their own businesses. this allows for income diversification and risk mitigation,especially attractive in today’s volatile economy. A recent study by the Global Entrepreneurship Monitor (GEM) showed that a significant percentage of entrepreneurs globally are engaged in hybrid entrepreneurial activities.
Looking Ahead: Embracing the Entrepreneurial Spirit
The current surroundings fosters an entrepreneurial spirit, driven by necessity, opportunity, and a desire for greater control. As seen in the experiences of Kalda, Kalenius, and Elomaa, this wave of new businesses is fueled by innovation, resilience, and a willingness to take risks.
Do you see a similar shift in your community, with more people pursuing entrepreneurial ventures? What factors do you believe are most critical for the success of a new business in today’s economic climate?
How is the youth demographic influencing Finland’s entrepreneurial surge?
finland’s Entrepreneurial Surge: Record Company Births, rising Deaths, and Youth Driving the New Wave
Finland, long lauded for its education system and quality of life, is experiencing a remarkable entrepreneurial boom. While headlines often focus on the sheer number of new companies being established, a more nuanced picture reveals a dynamic landscape of high birth rates alongside a corresponding increase in business closures – and a significant shift in who’s leading the charge: its youth. This article dives into the factors fueling this surge, the implications of the ‘creative destruction’ at play, and what it means for the future of the Finnish economy.
The Startup Explosion: Numbers don’t Lie
Recent data indicates Finland witnessed a record number of new company registrations in 2025, surpassing previous highs set in the early 2010s. This isn’t simply a statistical anomaly. The trend has been steadily climbing for the past five years, wiht a notably sharp increase observed in the tech sector, specifically in areas like:
* Artificial Intelligence (AI): Finnish AI startups are attracting significant venture capital.
* Sustainable Technologies: Driven by a national commitment to sustainability, cleantech ventures are flourishing.
* Gaming & Digital Entertainment: Building on a strong existing foundation, the gaming industry continues to expand.
* Biotech & Healthtech: Innovation in healthcare solutions is gaining momentum.
This surge in business creation is directly linked to several key initiatives, including streamlined business registration processes, increased access to seed funding, and a growing ecosystem of support for entrepreneurs. The Business Finland institution, for example, plays a crucial role in providing funding and internationalization services.
The Flip Side: Increased Business Failures
However, the celebratory narrative of record births is tempered by a parallel trend: a noticeable rise in company bankruptcies and dissolutions. While a certain level of failure is inherent in any thriving entrepreneurial ecosystem – often referred to as ‘creative destruction’ – the increase is prompting analysis.
Several factors contribute to this:
- Economic Headwinds: Global economic uncertainties and inflationary pressures are impacting businesses of all sizes.
- Increased Competition: The influx of new companies intensifies competition across various sectors.
- Scaling Challenges: Many startups struggle to successfully scale their operations beyond the initial phase.
- Funding Winter: While seed funding remains relatively accessible,securing later-stage investment has become more challenging.
This doesn’t necessarily signal a crisis. Instead, it highlights the competitive nature of the current surroundings and the importance of robust business planning and adaptability.The Finnish government is responding with initiatives aimed at supporting struggling businesses, including access to financial counseling and restructuring programs.
The Youthquake: A New Generation of Founders
Perhaps the most compelling aspect of Finland’s entrepreneurial surge is the demographic shift. Traditionally, Finnish entrepreneurship was dominated by individuals in their 40s and 50s with established careers. Now, a new wave of founders – largely under the age of 35 – are driving innovation.
* University Incubators & Accelerators: Finnish universities are actively fostering entrepreneurial talent through incubator and accelerator programs. Aalto University, such as, has a renowned startup ecosystem.
* Changing Attitudes Towards Risk: Younger generations are increasingly comfortable with taking risks and embracing the challenges of entrepreneurship.
* Digital Native Advantage: These founders possess a natural understanding of digital technologies and are adept at leveraging them to create innovative solutions.
* Focus on Impact: Many young entrepreneurs are driven by a desire to create businesses that have a positive social or environmental impact.
This shift is particularly evident in the tech sector, where young founders are disrupting customary industries with innovative solutions.The availability of remote work opportunities and a strong digital infrastructure further contribute to this trend.
Case Study: ICEYE – from Satellite Startup to Global Leader
ICEYE, founded in 2015 by Rafaz Sadrollahi and Konstantin Thieme, exemplifies the success of Finland’s new entrepreneurial wave. The company, which operates a constellation of synthetic-aperture radar (SAR) satellites, provides real-time imagery for various applications, including disaster response, maritime monitoring, and national security.
ICEYE’s rapid growth and global expansion demonstrate the potential of Finnish startups to compete on the world stage.The company’s success is attributed to its innovative technology, strong leadership, and access to funding from both Finnish and international investors.
benefits of a Thriving Startup Ecosystem
the benefits of a robust startup ecosystem extend far beyond the individual companies involved.A thriving entrepreneurial landscape contributes to:
* Economic Growth: new businesses create jobs and stimulate economic activity.
* Innovation: Startups are frequently enough at the forefront of innovation, developing new products and services.
* Increased Competitiveness: A dynamic business environment fosters competition and drives efficiency.
* Attracting Talent: A vibrant startup scene attracts skilled workers and investors.
* Regional Growth: Entrepreneurship can revitalize local economies and create opportunities in underserved areas.
Practical Tips for Aspiring Finnish Entrepreneurs
For those considering launching a business in Finland, hear are a few practical tips:
- Leverage Government Support: Explore the various funding and support programs offered by Business Finland and other government