Small and medium-sized enterprises optimistic about next year

Weaker prospects for construction industry

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Short-term prospects for small and medium-sized enterprises have improved, and the trend is expected to continue next year, says a recent report on SMEs by the Confederation of Finnish Industry (EK).
      Production and sales in industry, services, and construction have continued to grow since the summer. However, rising costs mean that profitability has not improved at the same pace.
      Among SMEs in manufacturing, 17% expect improvements in the near future, while 77% anticipated no change, and only about seven percent were expecting harder times.
      Prospects in the construction industry are weakening somewhat, but this comes after an extended period of booming business.
      In the service sector, there was slightly more optimism than pessimism - a turnaround from July.
     
Production among SMEs grew more than in large manufacturing companies. They also got more orders in July-September.
      Both large and small companies complain of a labour shortage, especially in construction, where one in two companies said they had difficulty in recruiting personnel.
      The number of people in the whole SME sector has remained stable, and a slight increase is expected for the end of the year.
      Responding to the survey of small and medium-sized enterprises in October were just under 1,000 companies, employing more than 73,000 people.


Previously in HS International Edition:
  Finnish small and medium-sized companies reluctant to seek growth (1.11.2004)
  Small companies now providing fewer new jobs (24.6.2004)

Helsingin Sanomat