Finland is one of Europe’s most sparsely populated countries. At the same time, the country has a high proportion of fast-growing companies. This makes the country particularly interesting for studying how gazelles are created and distributed geographically. In a recent study, researchers have mapped this type of company in Finland during the period 2015-2021, and analyzed how they are distributed between different types of regions. <\/p>\n\n
The study shows that gazelles are not just an urban phenomenon. While cities have the greatest capacity to produce high-growth firms, smaller towns also contribute. Rural regions close to cities and areas with some urban structure have a moderate share of gazelles per inhabitant. The most sparsely populated parts of the country have the lowest share, but no region is completely without them. Fast-growing companies can be found all over Finland and in almost every sector – from construction and programming to trade, transport, manufacturing and agriculture. <\/p>\n\n
Variations between regions are linked to factors such as education levels and the age of the population. Structural differences affect which geographical areas are able to create fast-growing businesses. <\/p>\n\n
The study provides a more nuanced picture of Finnish business – and suggests that opportunities for growth can exist even where resources are limited.<\/p>\n\n
What makes the study unique is that it includes micro-enterprises – companies with fewer than 10 employees and an annual turnover of less than \u20ac2 million. Previous research has often focused on larger companies, despite the fact that micro-enterprises make up the majority of all businesses. To highlight their growth potential, the researchers developed a new, turnover-based definition of gazelles. <\/p>\n\n
It is based on turnover rather than number of employees and combines both relative and absolute growth. The threshold for micro-enterprises is set at an increase of at least \u20ac700 000 in turnover over the period studied. The new methodology provides a more nuanced picture of where growth is taking place, say the researchers. <\/p>\n\n