Entrepreneurship popular among young people in Estonia

More than one half of those aged 18 to 25 wish to set up their own companies in Estonia, which ranked ahead of the other Baltic States in this regard. A survey by SEB has revealed that 41 per cent of young people in Latvia and 48 per cent in Lithuania would like to start their own businesses.

“The profile of start-ups is expanding. Today, people of increasingly varied age groups and backgrounds wish to be their own bosses, and failure is feared less and less. However, when starting one’s own business and allocating capital for it, there are several “competitors”. In the case of young people, these include travelling or purchasing one’s own home. Only two per cent of those aged 18 to 25 are setting aside money to invest in their companies, as a result of which recognition and support by society for entrepreneurship are extremely important,” commented Erika Vaikmäe-Koit, Head of Retail Banking and Technology at SEB.

When it comes to getting started in entrepreneurship, the main obstacles for young people include a lack of good ideas and not having the required knowledge. The former was cited as a reason by 28 per cent and the latter by 16 per cent of young people in Estonia. In Latvia and Lithuania, not having a good idea was an obstacle to 28 and 26 per cent of young people, respectively, with 21 and 25 of those aged 18 to 25, respectively, admitting that the stumbling block to setting up a company is not having the required knowledge.

“Starting your own company may be a complex and time-consuming process. SEB has created some useful solutions geared specifically for starting entrepreneurs, so that they can concentrate on what is important: getting their businesses up and running, and unlike the other banks, we are there to support entrepreneurs already from the concept stage,” Vaikmäe-Koit added.

Compared to the other Baltic States in terms of young people wishing to set up their own companies, 11 per cent of young people in Estonia have already taken the first steps towards starting their own businesses. In Latvia and Lithuania, 8 per cent and 6 per cent of young people, respectively, have made a start with setting up their own companies.

“In creating an attractive business environment, Estonia is a step ahead of its neighbours to the south: companies born in Estonia outnumber those born in Latvia and Lithuania by approximately 5000 and 6000, respectively. The technical simplicity of starting a company and national measures have definitely helped; however, they are not the crucial components in an environment that favours entrepreneurial activity,” Vaikmäe-Koit said.

*The data used in this text is based on a survey conducted by SEB in all three Baltic States in 2015, with a total of 2002 respondents.
 

For more information:

Maarja Gavronski
Project Manager for Communication
Marketing and Communications Division
SEB Pank

Phone +372 665 5270
Mobile +372 5656 5785
Address Tornimäe 2, 15010 Tallinn
E-mail maarja.gavronski@seb.ee
www.seb.ee