SEB survey: savings used to create one’s own company

In Estonia, Latvia and Lithuania, savings serve as the primary means used for establishing one’s own company, while support from the state or EU funds are the least frequently used, a survey conducted by SEB Pank indicates.

In Estonia, 75 per cent of entrepreneurs have used personal savings to set up their own companies, and this indicator is on the same order of magnitude in the other Baltic States.

“In addition to generating a daily buffer of cash, savings play an important role when embarking on entrepreneurship. The initial capital needed for starting a business need not be much, and this is also the reason why getting started in entrepreneurship is mainly funded from one’s own savings or those of friends / relatives. Growing a business, however, requires additional capital and a strong business plan, which help to place the company on firmer footing,” commented Eerika-Vaikmäe-Koit, Head of Retail Banking and Technology and Member of the Management Board of SEB Pank.

Compared to 2013, support from friends or acquaintances and the role of seed money or loans from EU funds or banks have decreased in Estonia.

The respondents in Estonia (79 per cent) were more likely than their Baltic neighbours to believe that banks can assist them in the creation of a company. As in 2013, good financial terms and discounts for start-ups are expected the most from banks. The most attractive partner offers are for accounting and home page design services, as was the case during the 2013 survey.

In terms of the creation of companies, a lack of information is reported most often with respect to EU funds and EU legislation, with the information gaps concerning both having actually increased compared to 2013.

According to the survey, when entrepreneurs choose their home banks, they attach importance to their experience as private clients, the reliability of a given bank and the availability of good Internet and mobile banks.

“The survey shows that SEB’s position and potential as a bank for companies are much stronger than the bank’s market share suggests,” Vaikmäe-Koit noted.

The survey was completed by a total of 1759 respondents aged 18 to 74, of whom 586 were from Estonia.
 

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