SEB Business Barometer: companies in Põlva County will see turnover increase in 2015

The survey “Business Barometer 2015” conducted by SEB in October and November 2014 revealed that 17% of the companies in Põlva County expect to increase their turnover by 15% or more in 2015. One fifth of the companies in Põlva County are planning to create new jobs.

The companies planning to increase their turnover by at least 15% next year were classified as optimistic in the survey. 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%.

While there were no companies expecting turnover increase in Põlva County in the previous year, the research now revealed that 17% of respondents are hopeful. In sectors, trade and industry are continuously on an optimistic position, now also taken by the construction sector. Last year, it belonged among the most pessimistic sectors.

“The research results show various interpretations of the economic situation in different counties. Põlva County is one of three Estonian counties, where expectations of companies related to turnover increase are higher than in the previous year. Positive expectations are welcome and we hope that in this region, these expectations are formed on realistic bases,” said Indrek Lass, the Manager of SEB’s Southern region.

Export market is important, but domestic market is essential. Investment plans of the companies are decreasing
No major changes have taken place in the number of companies in Põlva County planning to enter new or expand on the existing export markets: last year, it was 24%, now 20%. The average figure of Estonia is 28%, 3 percentage points less than in the previous year.

The number of small and medium-sized enterprises of Põlva County planning investments of over 30,000 euros has dropped from 57% to 16%. The average figure of investment plans of Estonian companies has decreased from 41% to 16%. However, in Estonia, there are still examples of business regions with active investment plans, such as the 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.

New jobs will be created; innovation of products and services continues
The surveyed companies plan to create almost 1,500 new jobs in total this year in Estonia. This is an unexpectedly high figure, taking account of the current economic situation. Only 4% of Estonian companies expect decrease in the number of employees. Last year, 14% of the companies in Põlva County planned to employ new employees; now, the relevant figure is 21%. The average figure of Estonia is 23%, 4 percentage points less than in the previous year.

The number of Estonian companies planning innovation has increased from 59% to 73%. In addition, the companies in Põlva County consider essential innovation of products and services, and 69% of the companies in Põlva County are planning innovation of their products and services this year. Last year, the relevant figure was 2 percentage points lower. According to the survey, 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.

“The companies of Põlva County have surprised positively with their plan to employ new employees. It is the only county in Estonia that plans to create more jobs than the year before. Active interest in domestic market, practically unchanged plans related to new export markets and expectations for turnover increase show that, in spite of some economic instability, they are moving on with good speed, paying attention to versatile development of the companies,” said Lass.

ABOUT THE SURVEY:
In October and November 2014, SEB conducted their third counselling project. Within the framework of the project, the survey “Business Barometer 2015” of Estonian SMEs was conducted, in order to map expectations of the companies for the coming business year. The research covered 2,837 small and medium-sized enterprises. 67 companies in Põlva County also participated in the research. Most respondents in Põlva County were companies of service and administration, agriculture and forestry, and industry sectors.

Further information:

Julia Piilmann
Head of Communications
Marketing and Communication Division
SEB Pank

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