SEB Business Barometer: Optimism of the companies in Jõgeva County has increased

The survey „Business Barometer 2015“ conducted by SEB in October and November 2014 has revealed that companies in Jõgeva County have more optimistic expectations for turnover increase than in the previous year. Plans of the companies in Jõgeva County concerning expanding on export markets have also increased.

The companies planning to increase their turnover by at least 15% in 2015 were classified as optimistic in the research. In Jõgeva County, the number of optimists has increased from 5% to 11% within a year.

The survey covering 3,000 small and medium-sized enterprises (SMEs) in Estonia revealed that average business optimism in Estonia has decreased from 25% to 20%. By counties, the companies of Harju County are still most optimistic. In sectors, trade and industry are continuously on optimistic position, and the construction sector was included as well. Last year, it belonged among the most pessimistic sectors.

“Business forecasts of Jõgeva County for the coming business year are among the strongest in Estonia. Compared to other Estonian counties, the increase of business optimism among companies in the county was the highest – 67%. This figure increased in only two counties in Estonia: Jõgeva and Järva. Another positive quality of the region is the improvement of export growth expectations by 10%, compared to the previous year,” said Indrek Lass, the manager of Southern region of SEB.

Interest in export has increased, fewer large investments are planned
Compared to the previous year, the number of companies in Jõgeva County, who are planning to enter new or expand on the existing export markets, has increased (from 5% to 15%). The average figure for Estonia is 28%, which is 3 percentage points less than the year before. Compared to the previous year, investment plans of the companies in Jõgeva County have decreased: while 40% of the companies were planning to make investments exceeding 30,000 euros for 2014, only 17% of the companies in Jõgeva County are planning similar investments for 2015. The result of Jõgeva County is similar to the Estonian average figure, which also decreased from 41% to 16% in a year. In Estonia, there are still examples of business regions with active investment plans, such as Ida-Viru and Järva counties, where every fifth company is planning investments. Investment readiness is the lowest in Valga County, where only every tenth company is planning investments.

“Although the investment plans of companies in the region remain on the average level of Estonia, the changes that have occurred in a year have been significant. Taking account of the fact that also other business indicators – activity on domestic and external markets, interest in innovation and plans to create new jobs – grew or remained on a relatively similar level, I think that this year, we can expect positive development and good business news from the companies in Jõgeva County, which is very important for Estonian economic space at the moment,” said Indrek Lass.

Creation of new jobs is modest, interest in innovation increases
The surveyed companies plan to create almost 1,500 new jobs in total in the new year in Estonia. This is an unexpectedly high figure, taking account of the current economic situation. Only 4% of Estonian companies expect a drop in the number of employees. No major changes have taken place in the number of companies planning to create new jobs in Jõgeva County compared to the previous year: 14% of the companies are planning to employ new employees. The average figure of Estonia is 23% (27% last year).

The number of Estonian companies planning innovation has increased from 59% to 73%. In addition, the companies of Jõgeva County consider innovation of products and services essential, and 58% of the companies of Jõgeva County are planning innovation this year. Last year, this figure was lower by 8 percentage points.
“SEB’s survey revealed that business figures of Jõgeva County have increased compared to the previous year or remained on the same level. This provides basis to assume that in 2015, we can expect positive development and good business news from Jõgeva County,” said Lass.

According to the research, 36% of Estonian companies are planning innovation of a product or a service, 24% development of employees and 11% change of business model. In a year, the interest in innovation has essentially increased in Estonian construction sector, which is planning to intensify training and development of employees. The most innovative field is still industry, where competition is tight and companies are operating extensively on export markets.

ABOUT THE RESEARCH:
In October and November 2014, SEB conducted their third counselling project. The survey of Estonian SMEs “Business Barometer 2015” was conducted within the framework of the project, in order to map expectations of the companies for the coming business year. The research covered 2,837 small and medium-sized enterprises. 83 companies from the Jõgeva County also participated in the research. Most respondents in Jõgeva County were service and administration companies, as well as those from the agriculture and forestry and trade sectors.

Further information:

Julia Piilmann
Head of Communications
Marketing and Communications Division
SEB Bank

Phone +372 665 5340
Mobile +372 512 4808
Address Tornimäe 2, 15010 Tallinn Estonia
E-mail julia.piilmann@seb.ee 
www.seb.ee