The solution is not that all laid-off starting your own business. More importantly, new business grows, develops and recruits.
Salo met Prime Minister Juha Sipilä industrial structural change brutality. The closure of Microsoft’s mobile phone unit is a nostalgic end point of one of the biggest industrial success stories in Finland.
Prime Minister’s message to the redundant is that they will become entrepreneurs. To give the stick and little carrot he throws out that unemployment benefits could be converted to a start-up grant for based company.
A prime minister who himself has a background as an entrepreneur is suited to speak for enterprise and encourage people to become entrepreneurs. Credibility is based on experience, then it is also possible to line up objective facts that show why it is necessary to get away from the fixation on large companies that employment rescuers.
According to a report by the Economy and Policy Forum EVA from 2014 Finland industrial base on the way to erode. Industrial production share of GDP during the 2000s has fallen from over 25 percent to under 15 percent. But still employ the 130 largest companies as many as 300 000 smallest companies.
According to a comparison of OECD countries are the newly established companies’ share of the total employment lowest in Finland. Despite the boom in start-up companies, it is only a thin layer of new companies that manage to grow and develop in the longer term. But it is in them the new jobs must be born. In Finland, the absence of such medium-sized companies that are the engine for example the German economy.
Much has after all made right in Finland. According to EK’s survey of production and investment in Finland despite all the difficulties in recent years to countries been successful in globalization. Many Finnish companies have managed to become global peaks in their niches, and there is a particular expertise in areas such as energy and environmental technology. Companies’ investments in research and development is well on the international level.
It is in the private service jobs increased the most. Much of the reduction in the workforce in the industry is about to industrial companies outsourced their service functions in service. Education and social and health services are the fastest growing industries in Finland.
In a recent report by ETLA on occupational structure breaks describes how especially industrial and office workers have experienced that they are in a shrinking profession . Information technology has replaced a large part of office work, but in contrast to the industrial workers are office workers and higher educated relatively easily been able to reposition itself in new professions.
The situation is most difficult for older people who are affected by unemployment. It is no longer for them to invest in a new profession.
Those who lose their jobs at Microsoft in Salo, Tampere and Espoo hardly hear those hardest hit by structural change in the economy. They have an expertise in IT technology and product development that there is a persistent craving for. Programming know-how is one of Finland’s strengths and the companies that develop software are growing, becoming more and need more manpower.
For those who come on their own business, it is an excellent solution to drive a lonely business. But it is teeming already by companies not ever be bigger than one person. The solution is not to every or even every other of the laid-off starting a business. No one is served by a hype that each one will become his own entrepreneur.
Much more important is that the companies are based grow, evolve and recruits.
The idea of converting unemployment benefits to a start-up grant seems who picked out of the hat at least as long as it does not specify which conditions in that case. It is in any case not a real possibility for a majority of the unemployed to start their own business. It is hardly conceivable that make it a condition for continued unemployment allowance to the unemployed setting up a business.
Government’s plans to shorten the time for the earnings-related allowance associated with it. How is it going to create incentives to seek and accept work, or start their own, without set a most poverty trap for the unemployed? It’s just a fact that it can take time to find a new job.
And cuts in education is counterproductive. It is merely a competitive knowledge that gives Finland’s success.
Mikael Kosk
mikael.kosk@gmail.com
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