Document 180857
How to successfully enter Bal1c market Tiina Link, Director the Bal2cs Sources: Norwegian companies ac2ve in the Bal2cs, Innova2on Norway We give local ideas global opportuni1es OFFICES IN EVERY COUNTY REPRESENTATION IN MORE THAN 30 COUNTRIES Favourable cost/quality labour force • High quality labour force: • 89% completed secondary school versus 81% in Denmark, and 69% in EU, 34% have a university degree (Estonia) • People with Nordic background can be found • A myth of high salary raises • Bal2c average salaries s2ll 5-‐7 2mes lower Norwegian • • • • • Large salary differences in organisa2on and between different sectors Labor unions less present than in Nordic countries Business circles are rela2ve young compared Nordic countries Big mentality differences between genera2ons Large Russian speaking minori2es (Estonia, Latvia) • Corporate Social Responsibility – In Norway most focus on environmental standards, in the Bal2cs on work standards and salaries Hire right people • Hire local people with right a^tude and best industry experience, experience from Nordic companies is an advantage • Execu2ve search is a cri2cal factor • Find right salary • Track loyalty risks with management contract and supervision • Can be more need for s2mula2ng, coaching, build confidence Quality of local business partners varies • Size of local companies fits well to Norwegian small and medium size companies • Other Nordic businesses ac2vi2es have built experiences and quality needed • Quality of local business partners varies greatly Find right business partner • Take 2me to find the right business partner • Previous references from Nordic companies is an advantage • Find right price level Plen1ful public funding • The Bal2cs are in the peak period of EU funding -‐ EUR 15 billion in 2007-‐2013, plus what countries add selves • E.g. A foreign company establishing could get 25-‐75% grant for new investments, hiring development specialists, training of employees, product development, export development • Best packed for large investments in Lithuania • Many poten2al client projects are co-‐funded from EU • Also EEA/Nordic/Norwegian funding available Low taxes, EU legisla1on • Low taxes • Punctual harmoniza2on with EU legisla2on, but three countries with their specifics • Laws are modern, but short prac2ce causes uncertainty • Wrihen contracts are normal • Court cases resolved in Bal2c courts or arbitrage Check out laws, establish good networks • Company forma2on -‐ most select limited liability company. More formali2es in establishment procedure than in Norway • Make sure the company has necessary licenses and permits before star2ng ac2vi2es • The tax system is business-‐friendly, but use qualified accoun2ng firms • Establish good local networks Pro business environment • • • • • • • • Advanced technologic environment World-‐class informa2on and communica2on technology (Estonia) Short distance to follow up on ac2vi2es. Direct flights (1,5 hrs) Benefits from proximity to Finland and its advanced interna2onal logis2cs (Estonia) Less bureaucracy compared to Nordic countries, however the bureaucracy has a shorter tradi2on and is therefore less predictable Transparency Interna2onal Corrup2on Percep2on Index 2011 – 9 very clean to 0 – Norway 9, Estonia 6,4, Lithuania 4,8 and Latvia 4,2 Crime – Not really a problem Generally very pro-‐business and favorable environment Similar business culture to Nordic countries • Fairly similar business culture to Nordic countries, though differences Estonia most Nordic geographically and culturally • Myth – Low work ethics – Hardworking people • Myth – Low efficiency – 1:1 Norwegian and Bal2c personnel, very few sick days • Less equality (superiors, subordinates; women, men) • Hunger, want to do • More tolerance for mistakes • Flexibility • Shorter orienta2on Build on the best from Norway and locally • Be aware of cultural differences • Establish clarity in internal processes and organiza2on • Build on the best of Norway and locally How has it gone? 75% of Norwegian establishments in the Bal2cs pleased/ extremely pleased with results achieved Source: Deloihe survey 2008 Business between Norway and the Bal1cs shows fantas1c growth Source: Sta2s2cs Norway. Million NOK Energy & environment Mari2me Building materials Services Photo: Robin Strand / Innovation Norway Contact Innova1on Norway for advise Latvia Estonia Associated Consultant Associated Consultant Inese Andersone Zanda Vipule Lithuania Director the Bal2cs Tiina Link Senior Adviser the Bal2cs Urmas Lepik Associated Consultant Associated Consultant Rita Boguzaite Orinta Jasudaite Associated Consultant Anneli Valge Associated Consultant Annely Abel Thank you! Takk! Äitäh! Paldies! Ačiū! 2ina.link@innova2onnorway.no www.innovasjonnorge.no Photo: Yngve Ask / Innova2on Norway Photo: Robin Strand / Innovation Norway
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