SEB Business Barometer: The companies of Järva County expect turnover increase in 2015

The survey “Business Barometer 2015“ conducted by SEB in October and November 2014 revealed that 12 percent of small and medium-sized enterprises in Järva County are expecting at least a 15% turnover increase in 2015. The survey also revealed that in 2015 one tenth of the companies of Järva County are planning to expand on import markets and one fifth will create new jobs.

The companies planning to increase their turnover by at least 15% in the new year were classified as optimistic in the research. The survey covering 3,000 small and medium-sized enterprises (SMEs) in Estonia showed that average business optimism in Estonia has decreased from 25% to 20%.

While the research conducted a year ago showed that 6% of the companies of Järva County were optimistic, this year the relevant percentage was 12%. In sectors, trade and industry are continuously on an optimistic position, and the construction sector was included as well. In the previous year, it belonged among the most pessimistic sectors.

“Although the expectations of companies in Järva County related to turnover increase are low compared to the average of Estonia, it is good to notice the growth trend. In addition to the fact that 22% of the companies of the region are planning to make larger investments this year, also the volume of small investments (i.e. less than 30,000 euros) is considerable in the region. Attitudes of the companies reveal careful growth strategy, suitable in the current economic situation,” said Toomas Palts, the manager of Eastern region of SEB.

Companies concentrate on the domestic market, investment plans have decreased remarkably.
Compared to the previous year, the number of companies in Järva County that are planning to enter new or expand on the existing export markets, has dropped (from 18% to 9%). The average figure of Estonia is 28% percent, which is 3 percentage points less than the year before.

Compared to the previous research, investment plans of the companies of Järva County have decreased remarkably: while 94% of the companies were planning to make investments exceeding 30,000 euros for 2014, only 22% of the companies of Järva County are planning similar investments for 2015. However, the figure of Järva County is still 6 percentage points higher than Estonian average figure, and together with Ida-Viru and Viljandi counties, they are three Estonian business regions with most active investment plans. Investment readiness is the lowest in Valga County, where only every tenth company is planning investments.

“In addition to high investment interest in the comparison of counties, the companies of Järva County are most eager to secure their position on the Estonian domestic market. Both figures indicate that Järva County is an active and well-functioning business region, where positive news can be expected in the coming year,” said Palts.

New jobs will be created, innovation of products and services will continue
The surveyed companies plan to create almost 1,500 new jobs in total in the new year in Estonia. This is unexpectedly high figure, taking account of the current economic situation. Only 4% of Estonian companies expect a decrease in the number of employees. Last year, 30% of companies in Järva County planned to employ new employees; now, the relevant figure is 22%. The average figure of Estonia is 23%, which is 4 percentage points less than the year before.

The number of Estonian companies planning innovation has increased from 59% to 73%. In addition, the companies in Järva County value innovation of products and services and 75% of the companies of Järva County are planning to invest in innovation in 2015. Last year, this figure was lower by 8 percentage points. According to the survey, 36% of Estonian companies are planning innovation of a product or a service, 24% development of employees, and 11% a change in 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. Innovation plans are lowest in agriculture.

ABOUT THE SURVEY:
In October and November 2014, SEB conducted their third counselling project. Within the framework of the project, the research of Estonian SMEs “Business Barometer 2015” 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. 79 companies in Järva County also participated in the research. Most respondents in Järva County were service and administration companies, followed by education, culture, health care and construction sectors.
 

Further information:
Julia Piilmann
Head of Communications
Marketing and Communications 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