Estonian and Latvian business environment survey

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Estonian and Latvian business environment survey

• Estonian-Latvian cross-border small and medium
  enterprise cooperation for expansion to
  neighboring markets

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Study objective and methodology

• Ordered by the Estonian Business Chamber in
  Latvia and Valga Town Government in the framework
  of the DELBI project.
• Objective To map the need for support network
  and partnerhip search, interest in cross border
  cooperation and hindering factors.
• Target group companies with 1-99 employees, 6
  regions in South Estonia and 11 regions in North
  Latvia.
• Sample 150 Estonian and 154 Latvian companies.
  Random sampling, distribution of the sample the
  same as in the study universe (according to
  sector, region, number of employees).
• Data collection Computer Assisted Telephone
  Interviewing, in August 2012. Majority of the
  respondents were managers of the company.

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ESTONIA Pärnu-, Tartu-, Põlva-, Valga-,
Viljandi- and Võrumaa.
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LATVIA Aluksnes, Cesu, Gulbenes, Limbažu,
Madonas, Ogres, Saulkrastu, Siguldas, Valkas,
Jurmala, Valmiera.
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Profile of the companies (1)
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Profile of the companies (2)
26 of Estonian and 48 of Latvian companies have
a development plan.
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Level of cooperation
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Countries where products/services are marketed
ESTONIA
Estonia
Latvia
Lithuania
Other European states
Russia
other
LATVIA
Latvia
Estonia
Lithuania
Other European states
Russia
other
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Cooperation with companies in the neighbouring
country

• Main areas of cooperation
• Estonia import of goods from Latvia, export of
  goods to Latvia.
• Latvia import of goods from Estonia, export of
  goods to Estonia, exchange of information and
  knowhow.
• Main reason for stopping the cooperation was not
  profitable.

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Reaons for not operating in the market of the
neighbouring country
ESTONIA LATVIA
Not enough initiative
The market is not attractive enough
Our goods/services are not suitable
Not enough information
Latvian or Estonian regulations are hindering
Language barriers
Not enough resources or work force
Enough work in the home country/ no need
Have not thought about this possibility
other

• From those who have never cooperated.

Other distance, we work for a bigger company,
locals provide enough service themselves.
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Interest in doing business on the neighbouring
market
From those who have never cooperated or do not do
it anymore.
ESTONIA
LATVIA

• 19 of Estonian and 39 of Latvian companies
  would be interested.

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Need for information
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The level of knowledge on marketing oportunities
in the neighbouring country
23 of Estonian and 35 of Latvian companies
consider their current knowledge to be good.
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Looking for or obtaining information on the
marketing opportunities in the neighbouring
country
Obtaining information during last 12 months.
ESTONIA LATVIA
Through business partners or acquaintances
On the Internet
By visiting companies in the neighbouring country
At a seminar or conference
Media
other
Have not obtained any information
Other communication with consumers,
professional association.
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Need for information on the economy and market
of the neighbouring country
ESTONIA LATVIA
Economy in general
Legislation and tax system in general
Establishing a branch-office
Establishing a company
Market situation of a spesific field
Different marketing oportunities
Cooperation possibilities with companies
Thematic seminars/trade fares/events
other
Do not need any information
Other price level in the market, economic
situation of the companies.
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Suitable information channels for finding
partners for cross-border cooperation
From those who cooperate in the neighbouring
country or have the interest to begin.
ESTONIA LATVIA
Internet based database for looking for partners
Information point with face to face service
Information hotline
Trainings or seminars
other
Do not need information for finding cooperation partners
Other trade fairs, internet, through partners,
personal consultations.
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Conclusions
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• The interest and the level of activeness of the
  Latvian companies is higher. They also plan their
  activities more companies with strategic plans
  cooperate more.
• The more passive state of Estonian companies is
  also related to their smaller size companies
  with 1-4 employees are less informed and do less
  strategic planning.

Cooperates or has cooperated in the neighbouring country
Has the interest to begin cooperation
Has good knowledge
Has obtained information during last year
Needs information
Has a strategic plan
Has 5 or more employees
Was founded more than 10 years ago
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• THANK YOU!