Study: Finland lags behind in entrepreneurship friendliness – growing interest among youth brings hope

According to the international GEM report, Finns have an exceptionally reserved attitude toward entrepreneurship compared to other wealthy countries. Entrepreneurship is not widely seen as an attractive career option, and relatively few people intend to become entrepreneurs.

Both early-stage entrepreneurial activity and the number of established entrepreneurs have declined since 2021. Expectations regarding business growth and internationalization are also cautious.

“Compared to our previous study four years ago, fewer people expect to start a business, perceive business opportunities, or feel they have sufficient skills and knowledge for entrepreneurship. At the same time, fear of failure has continued to increase and remains a significant barrier to entrepreneurial activity”, says Professor and Director Matti Muhos from the University of Oulu Kerttu Saalasti Institute.

“Finland has a strong structural foundation for entrepreneurship, but there are many challenges in attitudes, regulation, and financing. It is easy to start a business, but not easy to succeed as an entrepreneur”, says Mikael Pentikäinen, CEO of the Federation of Finnish Enterprises.

According to Muhos, Finland’s support and funding system focuses too heavily on already proven successes, leaving early-stage ideation, development, and validation with insufficient attention.

“Instead of fragmented and discontinuous incubator services funded through project-based financing, what is needed is a predictable and coherent process that supports entrepreneurs from idea to scaling and internationalization. Sweden’s nationally coordinated incubator model offers a well-functioning example”, Muhos says.

Structural conditions remain strong, but culture does not support new entrepreneurship

Finland continues to rank among the global leaders in structural conditions for entrepreneurship. However, cultural and regulatory conditions are perceived as weaker than before. Expert assessments suggest that access to financing has declined, the importance of entrepreneurship policy has decreased, and cultural support for entrepreneurship is limited.

“Although entrepreneurial activity has declined, Finland’s structural conditions – such as infrastructure, services, and education – remain world-class. Despite this strong foundation, the entrepreneurial environment has become more cautious and less supportive of new businesses. In this respect, we lag significantly behind countries like Lithuania and Estonia, where the culture strongly favors entrepreneurship”, says Vice Rector Elina Varamäki from Seinäjoki University of Applied Sciences.

The report also highlights new structural and behavioral gaps in Finland’s entrepreneurship ecosystem. While experts consider entrepreneurs’ capabilities to utilize digitalization and artificial intelligence relatively strong, entrepreneurs themselves report limited adoption and low relevance of these technologies. This suggests that capabilities are not translating effectively into practical business use.

“Based on the study, Finland’s key challenge is not the structural conditions for entrepreneurship, but their utilization. Strengthening entrepreneurial activity requires investments particularly in attitudes, entrepreneurial skills, and the acceptance of risk-taking”, Varamäki continues.

Room for improvement in gender equality

Finland’s institutional framework still provides a strong foundation for women’s entrepreneurship, but perceptions of equality and motivation indicate a need for greater attention to gender-sensitive policymaking and a culture that encourages women’s entrepreneurship.

“Finnish entrepreneurship is characterized by a persistent gender gap. Among women, 4% were early-stage entrepreneurs and 3% were established entrepreneurs, compared to 9% and 8% among men, respectively. Women become entrepreneurs less often, have less confidence in their abilities, and experience greater fear of failure than men. Although Finland offers strong institutional and social support structures for women, access to key entrepreneurial resources – such as financing and markets – is clearly weaker than in peer countries. There is significant untapped potential in women’s entrepreneurship”, says Project Researcher Pauliina Björk from the University of Oulu.

Young adults stand out positively

The study identifies young adults as a particularly positive group in terms of entrepreneurship. They have more favorable attitudes toward entrepreneurship than the rest of the population, and their intentions to start a business have increased.

“Young people are Finland’s bright spot. They see entrepreneurship as an interesting career option, which sets them apart from older age groups. This is why it is important to invest in entrepreneurship education. Entrepreneurship is a skill that requires diverse competencies”, says Mikael Pentikäinen.

“In a Nordic comparison, Finland stands out as a strong provider of entrepreneurship education, especially at higher levels of education. The results indicate strong future development potential if support measures are targeted effectively”, Matti Muhos adds.

The GEM 2025/2026 report is based on extensive survey data from 53 countries, including 2,050 adult respondents and 36 entrepreneurship experts from Finland. The data combines population surveys and expert assessments, providing a comprehensive picture of attitudes, activity, and the entrepreneurial environment.

The Finnish GEM report was produced by the University of Oulu Kerttu Saalasti Institute and Seinäjoki University of Applied Sciences, with support from the Federation of Finnish Enterprises, the Keskitie Foundation, Savings Bank Optia, and the Töysä Savings Bank Foundation.

Read Finnish report: Pauliina Björk, Sanna Joensuu-Salo, Anmari Viljamaa, Martti Saarela, Nafisa Yeasmin, Robert van der Have, Ossi Kotavaara, Elina Varamäki, and Matti Muhos: Global Entrepreneurship Monitor 2025/2026 Finnish Report

Read international report: GEM 2025/2026 Global Report – From Uncertainty to Opportunity

Further information:

Matti Muhos, Professor, Director
University of Oulu Kerttu Saalasti Institute
matti.muhos@oulu.fi
Tel: +358 400 407590

Elina Varamäki, Vice Rector
SEAMK
elina.varamaki@seamk.fi
Tel: +358 40 8305189

Image: Pexels, Vitaly Gariev