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finance condition Business conditions worsened at the start of this year, according to a new Entrepreneur Survey, showing the weakest economic conditions in recent years. Only 52% of small and medium-sized enterprises (SMEs) said their financial situation was very good or very good in February, down from 55% in December. Conversely, 17% of respondents currently consider their economic position to be very poor or very poor, indicating a difficult situation for around 75,000 businesses.
The survey, which gathered views from 1,339 small and medium-sized business representatives in February, found that the trend for businesses to be in worse financial shape was particularly pronounced in the retail sector, where 22% reported very or very bad conditions. It became a relief. It points out that this economic downturn is caused by businesses facing additional pressures, such as the effects of strikes by professional unions. Mikael PentikainenCEO of Finnish Entrepreneurs.
Mr. Pentikainen expressed concern about the lack of understanding within Finland about the seriousness of the situation and the unsustainability of living on debt without the necessary reforms. “We must have the courage to carry out structural reforms to get the Finnish economy growing again,” he stressed.
The outlook for the near future also looks bleak, with 22% of entrepreneurs expecting their business’ financial health to deteriorate significantly or slightly over the next 12 months. This trend is particularly pronounced in the construction sector, where 32% expect the scenario to worsen.
Mr. Pentikainen highlighted the challenges to economic growth, noting that the desire and opportunities for business expansion are decreasing, as evidenced by reduced investment and the continued decline in the proportion of growth-oriented companies. “In this labor market environment, I can understand why entrepreneurs are thinking about whether it’s better to close up shop or relocate,” Pentikainen said, adding that he wants to foster an environment conducive to business growth and development. emphasized the urgent need for action.
HT
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