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Companies in Finland are much more likely to downsize rather than grow bigger, according to the results of a study carried out by the Research Institute of the Finnish Economy (Etla).
The data, covering the years 2008-2020, found that it was significantly more common for a firm to shrink in size than grow or expand.
However, the vast majority of companies in the study remained in the same size category during both the three- and five-year review periods.
There are three main categories for companies operating in Finland, according to the state-funded financier Business Finland (BF): start-ups, small and medium enterprises (SMEs), and large companies.
Etla noted in its report that the most common obstacles to growth faced by companies in Finland are strict regulations as well as the desire among business operators to avoid taking on too much debt.
The study also found that smaller companies faced financing challenges when attempting to grow bigger. For larger firms, competition was one of the main factors limiting growth.
Source : YLE