Estonian and Latvian business environment survey

1. Estonian and Latvian business environment survey Aire Trummal TNS Emor Estonian-Latvian cross-border small and medium enterprise cooperation for expansion to neighboring markets 01.10.2012, Tartu

2. 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, interestincross border cooperation and hindering factors. • Target group: companieswith 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 (accordingtosector, region, number of employees). • Data collection:Computer Assisted Telephone Interviewing, in August 2012. Majority of the respondents were managers of the company.

3. ESTONIA: Pärnu-, Tartu-, Põlva-, Valga-, Viljandi- and Võrumaa.

4. LATVIA: Alūksnes, Cēsu, Gulbenes, Limbažu, Madonas, Ogres, Saulkrastu, Siguldas, Valkas, Jūrmala, Valmiera.

5. Profile of the companies (1)

6. Profile of the companies (2) 26% of Estonian and 48% of Latvian companies have a development plan.

7. Level of cooperation

8. Countrieswhere products/services are marketed

9. Cooperationwith 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.

10. Reaons for not operating in the market of the neighbouring country From those who have never cooperated. „Other“: distance, we work for a bigger company, locals provide enough service themselves.

11. Interest in doing business on the neighbouring market From thosewho have never cooperated or do not do it anymore. ESTONIA LATVIA 19% of Estonian and 39% of Latvian companies would be interested.

12. Need for information

13. 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.

14. Looking for or obtaining information on the marketing opportunities in the neighbouring country Obtaining information during last 12 months. „Other“: communication with consumers, professional association.

15. Need for information on the economy and market of the neighbouring country „Other“: price level in the market, economic situation of the companies.

16. Suitable information channels for finding partners for cross-border cooperation From those who cooperate in the neighbouring country or have the interest to begin. „Other“: trade fairs, internet, through partners, personal consultations.

17. Conclusions

18. 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.

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