Estonian Entrepreneurial Spirit Dampened by Economic Uncertainty
Tallinn, Estonia – A recent survey paints a sobering picture of the Estonian mindset towards starting new businesses. Conducted by SEB, the study revealed that over half of Estonian residents have no immediate plans to launch their own ventures, marking the lowest entrepreneurial ambition in the Baltic region.
This hesitation is largely tied to the current economic climate. A quarter of the survey respondents cited unfavorable economic conditions as the primary deterrent to entrepreneurship, while others pointed to a lack of available capital.
"Estonia’s economic situation seems to have started to have a direct impact on the attractiveness of the sector that creates value in the economy, ie entrepreneurship," said Ainar Leppänen, head of SEB’s retail banking division and board member.
This sentiment is a stark change from previous surveys, where a lack of knowledge, insufficient funding, or weak business ideas were identified as the main barriers to entrepreneurial pursuits.
The study also highlighted the significant need for support among aspiring entrepreneurs. Almost 40% expressed a need for start-up capital, while nearly 30% desired assistance in acquiring the necessary skills and knowledge. Despite numerous entrepreneurship programs offered in Estonia, the scarcity of funding remains a significant hurdle.
Adding to these challenges are concerns about recent tax increases planned in Estonia. Leppänen stated, “It is understandable that the financial situation of the state must be improved and that the budget deficit cannot be solved without incurring losses. At the same time, it is necessary to be aware that some of the measures that the state is planning, including the introduced profit tax, could be a sign that the start and making business in Estonia is now more difficult – at least that’s what the survey says. However, we hope that the perception of such a situation will be temporary, that the feeling of confidence will improve and the desire to start a business will slowly recover in Estonia as well.”
The SEB Estonia survey on aspiring entrepreneurs was conducted in September 2024 in collaboration with Norstat. The study encompassed 1,000 participants aged 18-74 from Estonia, Latvia, and Lithuania.
( The survey was conducted by SEB Estonia in cooperation with Norstat in September 2024. )
The decreasing entrepreneurial spirit in Estonia mirrors a broader trend of caution in global markets facing economic uncertainty. While Estonian entrepreneurs are facing particular challenges, their situation echoes concerns felt by aspiring business owners worldwide.
