Only one third of entrepreneurs from the Baltic countries were satisfied with the year 2020.
In December 2020, Luminor Bank conducted a survey among 750 entrepreneurs and business owners in the Baltic countries. One third of the respondents called the year successful from a business perspective.
In percentage terms: Lithuania (37%), Estonia (35%), Latvia (29%).
Planning to scale their business in 2021: Lithuania (41%), Latvia (37%), while Estonian entrepreneurs were more cautious, only 25%.
The crisis caused by the coronavirus and other difficulties in 2020 taught many lessons. Some lost their business, some stayed on the market and were able to discover new opportunities.
Successful were those who managed to adapt their business and find new opportunities in difficult circumstances.
Marjan Savchenko, head of Luminor’s corporate banking division, was pleased that Baltic companies look to the future with optimism. “At least one third of small and medium-sized enterprises stated that they plan to expand their business in 2021 with the goal of increasing sales and developing their business in the digital environment.”
But there is a percentage of entrepreneurs who do not intend to expand. Estonian companies are the most cautious.
The reason is uncertainty related to COVID-19, Brexit, and other global events.
10% of respondents reported that their business grew in 2020. One fifth of entrepreneurs said they do not have finances for development in 2021.
According to Savchenko, it is now necessary to listen to businesspeople to understand how to provide them with adequate financing in the market. “With the help of the European Investment Bank and the fund, we are launching new programs. We will be able to provide additional loans and leasing totaling up to 660 million euros for SMEs and small and medium-sized businesses in Lithuania, Latvia, and Estonia. Thus, we can help companies cope with the crisis and also contribute to new development projects,” he added.
