Despite cultural, economic and business differences the Nordic countries have many positive aspects in common. The choice of where to locate a business in this part of the world will naturally depend on the specific nature of the business in question. Scandicorp will happily discuss with you about the benefits of a specific country for your business. In this article, we will look at 10 good reasons for a foreign business to establish a presence in the Nordic countries (Norway, Sweden and Finland).

1. High international rankings

The Nordic countries rank very high in international benchmarks in the top places of the most secure and best places to live, least corrupt countries and one of the best health systems in the world.

2. Reliability

Everything works. If something doesn’t work, it will usually be addressed as soon as possible. You save a lot of time and nerves when you can rely on the infrastructure, logistics and timekeeping etc.

3. English

Most Nordic people are fluent in English and will be more than happy to practice their English with you. Although a basic understanding of the local language will make everyday life easier for you.

4. Highly skilled workforce

Thanks to a good public schooling system and a high overall level of education, recruiting locals will be relatively easy in most fields of business.

5. Moderate corporate taxes

The Nordic countries have traditionally been perceived as high-tax jurisdictions. However, the corporate tax rates are very moderate in international comparison.

6. Business environment

The Nordic countries have a very strong financial sector, a stable, ethical and predictable business environment. This provides a solid base for a long-term business solution. Good logistics thanks to modern airports, efficient ports and railways.

7. Lively startup scene and pioneering new technology

The governments of the Nordic countries as well as local communities have encouraged and supported research and development, the creation of start-up hubs and events. The atmosphere for start-ups has proved to be very inspiring.

8. Relatively easy to find local partners

It’s good to find local partners who you could collaborate with on common projects as this will help build your credibility.

9. Over 25 million consumers

In a consistent market with a strong purchasing power due to the relatively high GDP per capita.

10. Good places to test new ideas and products

Nordic consumers and businesses are among the first to adapt to technologically, new products and concepts. Testing your new products and technologies in the Nordics first before going global may be a smart move.

Sweden is the best country in the world for women, at least according to a large american survey done by US News & World Report together with University of Pennsylvania and the brand consultants BAV Consulting. The survey ranks 80 countries around the world based on how closely people associate them with certain attributes such as human rights, gender equality, income equality, safety and overall progressive attitude. More than 21,000 respondents were interviewed and most of the respondents classified themselves as belonging to an ”informed elite” or being decision makers in business. The other Scandinavian countries also did well: Sweden was followed by Denmark and Norway. Finland came 6th.

According to New York Times this may come as a surprise to American conservatives, some of whom — like the Fox News host Bill O’Reilly have argued in recent weeks that criminal hordes of Muslim immigrants have forced frightened Swedish women to barricade themselves at home.

On the other hand some other studies suggest that Sweden may not be perfect paradise for women. Earlier this week, an organization promoting diversity in the workplace investigated a number of Sweden’s biggest private equity firms and found only 3 out of 92 top positions were held by women. Around 32 percent of board members of listed companies are women, and this figure appears to be growing.

Source: Read the US News story

Bloomberg Markets recently published a survey ”The Battle of Ideas” ranking the most innovative countries in the World. South Korea topped the list. The silver medal was won by Sweden which climbed up one place from last year passing Germany.

The Nordic countries are still highly ranked on the list: Finland as number five, Denmark as eight and Norway as fourteen. Bloomberg ranks countries on the basis of parameters such as patent activity, number of high-tech companies, education and research.

Bloombergs survey correlates well with another recent report, the Global Talent Competitiveness Index 2017 (GTCI) published by Adecco and INSEAD. According to this report the Nordic countries rank among the top in the World. GTCI focuses on how technology affects talent competitiveness and the nature of work. Finland is ranked best in formal education, vocational enrolment, social mobility, environmental performance, employability, ease of finding employees and availability of scientists and engineers.

Do you want to set up your business in one of the most innovative regions of the world? Feel free to contact Scandicorp who will happily provide you with any help and information.

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Download the full GTCI report

The Nordic countries ranked as top five overall in this year’s Global Sustainable Competitiveness Index. Sweden as first, followed by Norway, Finland, Denmark and Iceland.

Altogether, the index evaluated 180 countries across their natural capital, resource intensity, intellectual capital, social cohesion and governance. The Global Sustainable Competitiveness Index utilizes recognized data sources (the World Bank, various UN databases) and 109 quantitative performance indicators to measure performance.

The index was compiled by Swiss-Korean sustainability think-tank and advisory SolAbility.

The Nordic countries will no doubt be a good choice to establish a Cleantech startup. Likewise this market would be well suited for established Cleantech companies to test their products and services. Scandicorp will gladly provide you with guidance and corporate services.

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A recently published report by the World Bank places Sweden as the 9th easiest places to do business in out of 190 countries surveyed. The 2017 edition of the report, which is the 14th instalment of the annual study, appraises policies and regulations which boosts business activities in a country. Besides cost, other notable factors taken into consideration by foreign investors when assessing a country for investments include political and economic stability, risks, business policies, transparency, monetary and fiscal policies, bureaucracy, human capital, logistics, infrastructure and intellectual property protection.

In contrast to Sweden’s reputation for tricky bureaucracy, this year’s report shows it is becoming a more efficient place for business, with increased administrative efficiency highlighted, as well as praise for new automatic registration of mortgages and renewal of ownership.

The report ranks New Zealand as the best, Singapore as the second best and Denmark as the third best countries in the world for doing business. Overall the Nordic countries scored high with Norway as 6th and Finland as 13th.

Read the full report

Denmark, followed by Norway, Finland and Sweden turned out to enjoy the world’s best and fairest rule of law according to a new global ranking report by the World Justice Project (WSP). Rule of law is a fundamental condition for liberal democracy.

More than 100,000 households and experts were surveyed to measure rule of law in 113 countries. The index is based on the primary factors of: constraint on government powers, absence of corruption, open government, fundamental rights, order and security, regulatory enforcement, civil justice and criminal justice.

Here are the top four performers in each of the index’s main categories:

Constraints on Government Powers – Denmark, Norway, Finland, Netherlands
Absence of Corruption – Denmark, Singapore, Norway, Finland
Open Government – Norway, Denmark, Finland, Netherlands
Fundamental Rights – Norway, Finland, Denmark, Austria
Order and Security – Singapore, Finland, Sweden, Denmark
Regulatory Enforcement – Singapore, Netherlands, Norway, Sweden
Civil Justice – Netherlands, Germany, Norway, Singapore
Criminal Justice – Finland, Norway, Austria, Singapore

One more good reason to establish a business presence in the Nordic countries?

Read the full report

Image from “Polisen” the Swedish Police

Catella is a leading specialist in property investments, fund management and banking, with operations in 12 countries across Europe. Catella recently published a Nordic Market Tracker.

Investment Opportunities

The Northern European property market is increasingly featuring in the pan-European real estate portfolios of institutional investors. Compared with other European countries, the economic transparency and prosperity of the markets in the Nordic countries makes them a popular option. Also, the availability of capital opens up new investment opportunities. Catella foresees these opportunities, especially for investments in the office and retail markets.

In general, some 90% of invested capital in the Nordic countries is based on domestic markets (Sweden, Denmark, Norway and Finland), with a high share of Swedish capital – but this will change. Demand from German, French and UK investors rose in the past three quarters, not least through pressure from capital markets to look for a stable income stream.

“Many markets offer clear potential for portfolio diversification. Copenhagen and Helsinki display a correlation that is slightly negative, as does Berlin. Stockholm’s correlation is below the level identified, for example, for the German cities of Cologne and Dusseldorf, and also from the perspective of Lisbon, Warsaw and London investors. Against this backdrop, combining a Nordic segment with a German, Spanish or Belgium office property segment could be a successful strategy for anyone interested in risk diversification,” explained Dr. Thomas Beyerle, Head of Group Research at Catella, talking about the investment strategy from an international perspective.

Catellas report concludes

Catellas report concludes: “The Nordic countries are not as homogeneous as international stereotypes often suggest. There are marked differences to be aware of when investing. Not only do investors need to know how Sweden, Norway, Denmark and Finland differ when it comes to their social, economic and political arenas, but there’s something else international observers should keep an eye on, as well: intra-Nordic investment patterns. This report thus concludes that the northern European countries represent enormous potential when it comes to diversifying multinational portfolios. Furthermore, they also demonstrate structural stability for long-term investors with multi-country and multi-asset funds/strategy.”

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The London-based think tank, the Legatum Institute, has again released its annual global Prosperity Index. This year’s index ranks Norway as the most prosperous country among 142 countries.

The index compares 89 variables including traditional indicators like per capita gross domestic product and the number of people in full-time work in addition to factors such as number of secure internet servers in the country and how well rested people feel on a day-to-day basis. The variables are then split into eight sub-indexes: economy, entrepreneurship and opportunity, governance, education, health, safety and security, personal freedom, and social capital.

Norway has topped the Prosperity Index for the last past seven years. Norway is the only country ranked in the top 10 of every sub-index.

The other Nordic countries all received high rankings:

Denmark 3rd, after Switzerland (2nd), and second best when it comes to entrepreneurship and opportunity.

Sweden 5th, after New Zeeland (4th), ranks the best for entrepreneurship and opportunity and also fares well in safety and security. The country gained one place in this year’s index.

Finland 9th , ranked the third best in safety and security and fifth best in governance, however, the relatively poor economy has pushed the country down a rank from last year.

Iceland 12th , dropped a rank compared to last year, but ranks in the top five in three sub-indexes; personal freedom, entrepreneurship and opportunity and safety and security.

Would you be interested in expanding your business into this prosperous market?

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This slogan and brand launched by Stockholm Business Region in 2005 is understandably controversial. The Danes and Norwegians call it “Typical Swedish megalomania”. Naturally, there is no such thing as a capital of Scandinavia just as there is no capital of Europe.

The main arguments for Stockholm being the “Capital of Scandinavia”, according to Stockholm Business Region are
• Central – Stockholm is centrally located and is the largest city in Scandinavia
• Business – Stockholm is the economic center of Scandinavia
• Culture – Stockholm sets the tone of arts and culture in Scandinavia

The Nordic market only, Sweden, Denmark, Finland, Norway and Iceland, makes up the 11th largest economy of the world, with a remarkably high level of purchasing power. Looking at a map of the region one can see that Sweden is an ideal location, serving as a gateway to three markets: The Nordic countries (25 million consumers), the Baltic Sea region (100 million consumers) and the European Union (more than 500 million consumers).

A recent report by Stockholm Business region based on an analysis of Forbes Global 2000 companies presence in the Nordic region concludes that among the Forbes Global 2000 companies that have established operations in the Nordic region with regional headquarters, about 64 percent have chosen to locate their regional headquarters in Sweden, 20 percent in Denmark and 8 and 9 percent in Norway and Finland respectively.

Despite the refugee crisis, negative interest rates and some regional housing shortage the Swedish economy is booming this year. Sweden continues to rank as one of the most competitive, productive and globalized countries in the world.

Have you considered setting up a Nordic presence for your business? Would “The Capital of Scandinavia” be your location of choice? Perhaps Oslo or Helsinki would be alternatives to consider as well? The Scandicorp group has a presence and offices in all three cities. Feel free to contact us for further information at www.scandicorp.com.

Time to invest in Sweden? Yesterday, Swedish Finance Minister Magdalena Andersson raised the economic growth forecast for 2016 and predicted narrowing deficits in the coming years as an economic boom helps the nation cope with a record influx of asylum seekers.

Gross domestic product will expand 3.8 percent in 2016 and 2.2 percent in 2017, compared with December forecasts of 3.1 percent and 2.6 percent respectively, the Stockholm-based Finance Ministry said in a statement. It now predicts budget deficits of 0.4 percent of GDP in 2016 and 0.7 percent in 2017, compared with earlier forecasts of 0.9 percent and 0.8 percent.

The growth forecast is one percent higher than the forecast presented in connection with the 2016 budget last fall. Growth is now higher than in the United States, Germany and Great Britain. Unemployment is at its lowest level in seven years and Sweden gains market shares on international export markets.

The finance minister expressed worries that despite the good outlook there are some risks associated with the present state of the economy in the close trading partners Finland and Norway.

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