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Finnish Startup Community’s message to the next government: Improving the availability of labor has to be at the center of policy reforms

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The Finnish Startup Community (FSC) asked its members what kind of policy measures they hope for from the next government and what things are important in terms of growth? Based on the survey, policies related to improving the availability of labor are the most important.
The results of the survey of the Finnish Startup Community: the most important policy measure for startup companies that companies hope to change. Lowest, least important.
The results of the survey of the Finnish Startup Community: the most important policy measure for startup companies that companies hope to change. Lowest, least important.

The goal of the survey was to rank the most important of the previously considered policy measures by the Finnish Startup Community. The survey mapped policies that would be beneficial to all the sectors the FSC members are operating.

According to the survey, the three most important policies for startups are related to improving the availability of skilled labor. Interesting observation was that improving the availability of PhD level workers was not seen as important compared to other questions regarding the increase in the availability of the workforce.

It is good to note that the results of the survey should be taken as indicative, as the sample size was relatively small of 114 companies. FSC currently has 200 member companies. However, the results are very much in line with what the startups in Finland have been saying for the past years for example about the importance of the availability of skilled workers.

Gaming giant Supercell places the biggest expectations on the general improvement of labor availability and the streamlining of immigration processes. "Skillful employees are at the center of our operations and without them there is no game studio. Good reforms have been made, but the level of ambition must be raised and, for example, the digital identity reform must be completed at the very beginning of the government term." says Markku Ignatius, director of public affairs at Supercell.

However, it is important to note that FSC members operate in different sectors, where the skill requirements of the workforce also differ. "Some of our member companies operate, for example, in the field quantum technology, where even the academic skill requirements of employees play a very central role, and success in work requires the kind of in-depth knowledge that can basically be acquired with doctoral-level education," says Youssef Zad, chief economist of the Finnish startup community.

IQM, is a good example of a company that has employees with high level of education. “We have assembled the largest team of quantum experts in Europe. From our over 230 employees, over 40% have PhDs. As quantum technology advances, both theoretical and practical knowledge will continue to grow. Additionally, industry, academia, and the government must work together to bridge the skills gap and fully utilise the potential of quantum technology,” says Jan Goetz, CEO and Co-founder of IQM Quantum Computers, a global quantum company with Finnish roots.

According to the survey, taxation is considered important when it can better attract key personnel to startups or encourage startups to engage in RDI activities. Among the proposed policy recommendations, cutting corporate tax was considered the least important, which in part supports the message that our member companies have put forward: they want to pay taxes and thereby support also the funding of public services, such as good education.

The figure below illustrates the results of the survey in such a way that the top is the most important policy measure based on the survey, which the members of the startup community hope to change, and the bottom is the least important. The respondents are companies that are growing into a cluster of companies that strengthen the well-being of the Finnish economy and employment growth. In terms of Finland's economic growth and productivity development, it is important to promote policies that which these kinds of new innovative companies grows faster and reach their full potential.

The survey of the Finnish Startup Community was carried out in March 2023. A total of 114 member companies responded.

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The results of the survey of the Finnish Startup Community: the most important policy measure for startup companies that companies hope to change. Lowest, least important.
The results of the survey of the Finnish Startup Community: the most important policy measure for startup companies that companies hope to change. Lowest, least important.
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Finnish Startup Community is a community of more than 200 Finnish growth companies and startups. We both bring entrepreneurs together to learn from each other and drive important issues for startups forward in Finland.

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