The Finnish economy is sending another warning sign. The country is losing one of its most precious assets: companies. And the problem is twofold: not only do more businesses close, but also less new enterprises are opened
In the first quarter of 2019 (January to March), there were 6,500 closures of enterprises, according to the latest figures published by Statistics Finland. The number of closures grew by as much as 41% from the first quarter of 2018, when there were 1,900 fewer enterprise closures.
Source: Statistics Finland.
Examined by industry, the number of enterprise closures was highest in professional, scientific and technical activities, 1,198 enterprises. This was 18% of all enterprise closures in the first quarter of 2019.
There were second most closures in the industry of trade (998) and third most in the construction industry (834 closures).
In all other main industries apart from electricity, gas, steam and air conditioning supply, the number of enterprise closures increased from the corresponding period in 2018.
Examined by region, most enterprise closures were recorded in Uusimaa, 2,540 enterprises. The next in the list were Southwest Finland (630) and Pirkanmaa (561). Only in Central Ostrobothnia there were fewer enterprise closures than last year.
In Helsinki area 2,397 companies closed, while there were 469 closures in the sub-region of Tampere region and 437 in the sub-region of Turku Compared to one year before, the number of enterprise closures clearly increased most in the sub-regional unit of Helsinki (+829) and decreased most in the sub-regional unit of Pohjois-Satakunta (-8).
Examined by legal form, in the first quarter of 2019 enterprise closures of the form of private entrepreneurs (a natural person) numbered 3,505 and those of the form of limited liability company 2,378.
Enterprise closures of the form of natural person accounted for 54% and those of the form of limited company for 37% of all closures.
Openings also decreased
The number of enterprise openings decreased by 3% in the second quarter of 2019 (April to June) from the respective quarter in 2018.
In April to June there were 8,381 enterprise openings across the country. This was 264 or 3% fewer openings than in the corresponding period in 2018.
Source: Statistics Finland.
Examined by industry, the number of enterprise openings was highest in professional, scientific and technical activities. Altogether 1,360 enterprises were opened in this industry, which was 16% of all openings in the second quarter. There were second most openings in the industry of construction (1,057) and third most in trade (885).
The number of enterprise openings increased most in the industry of transport and storage (+212) and decreased most in trade (-205) compared to one year before.
Examined by region, most openings were recorded in Uusimaa (3,302 enterprises). Next was highest in Pirkanmaa (783) and Southwest Finland (720) was third on the list. The number of openings decreased most in North Ostrobothnia (-114) and increased most in Uusimaa (+41) year-on-year.
By sub-regional unit, the number of openings was highest in the sub-regional unit of Helsinki, 3,123 enterprises. There were 635 enterprise openings in the sub-region of Tampere and 524 in the sub-region of Turku. Openings decreased most in the sub-regional unit of Oulu (-88) year-on-year and grew most in the sub-region of Helsinki (+59).
Examined by legal form, in the second quarter of 2019 openings of the form of natural person numbered 5,136 and those of the form of limited company 2,752. Private entrepreneurs accounted for 61% of the openings and limited companies for 33%.