SEB survey: Baltic SMEs cautious regarding their economic prospects

The deteriorating external environment decreases the sense of security in Baltic small and medium-sized enterprises (SMEs), as indicated by the survey Baltic Business Outlook 2015 organised by SEB. However, enterprises regard innovation to be an important method for increasing efficiency and competitiveness.

According to the survey organised among more than 6,100 Estonian, Latvian and Lithuanian enterprises, the proportion of optimists, that is, enterprises who expect their turnover to exceed 15 per cent this year, is decreasing. Still, 20 per cent of SMEs in Estonia, 16 per cent in Lithuania and 10 per cent in Latvia will witness a turnover growth of more than 15 per cent this year.

“SMEs most likely do not expect 2015 to decrease the level of insecurity, as the geopolitical tensions and economic challenges are still present. Expectations are mainly lowered by the situation prevalent on export markets, which is caused by the Russian and Finnish markets. Right now, SEB regards dialogue and constant communication with enterprises as very important in order to support them with our experience and know-how,” said Eerika Vaikmäe-Koit, SEB Management Board Member and Head of Retail Banking and Technology Area.

The attention of Baltic SMEs is still directed to the domestic market; according to the survey, the proportion of new or existing enterprises focusing on foreign markets is the highest in Lithuania at 33 per cent, followed by Estonia (28 per cent) and Latvia (18 per cent).

In Estonia and Lithuania, in particular, SMEs are planning to increase efficiency by way of innovation: a total of 73% of the enterprises surveyed in Estonia, 69% in Lithuania and 39% in Latvia plan to undertake innovations or organise trainings for employees in 2015.

This year, most of the respondents do not foresee a significant change in staff composition. Lithuanian SMEs are the most active in planning recruitments, with 29 per cent planning on an increase in staff numbers.

Due to the insecurity of the export market, enterprises are more cautious when planning new investments. Estonian enterprises are the most active, with 41 per cent planning new investments in 2015, but the proportion of enterprises planning capital investments in the amount of more than EUR 30,000 has decreased in all three countries, to approximately 16-18 per cent of the total sample.

SEB Group has organised a large-scale consultancy project for Estonian, Latvian and Lithuanian small and medium-sized enterprises (SMEs) for the third consecutive year. During meetings with entrepreneurs, the bank shared its financial knowledge with SMEs, with special attention paid to financial planning and management. In the course of the consultancy project, SEB also conducted a survey that identified the expectations of SMEs towards the coming financial year. A total of 6,125 SMEs participated in the survey.
 

For more information:

Evelin Allas
Communications Manager
Marketing and Communications Division
SEB
phone +372 665 5649
mobile +372 511 1718
Address Tornimäe 2, 15010 Tallinn
e-mail evelin.allas@seb.ee
www.seb.ee