Startup barometer: Confidence in the surrounding economy continues to decrease, but the adjustments in the number of employees seem to be over
![The key results of the startup barometer. The graph presents the results of the survey as balance figures for each question Q2/2022-Q1/2023.](/data/images/00905/48dba988-2c14-4238-9255-06ea4e5a1adb-w_720.png)
Startup companies have adapted their operations quickly, due to changes in the surrounding economic situation. According to the survey, members of the Finnish Startup Community cut swiftly their recruitment pace last year. Based on a survey of the first quarter of 2023, the indicator describing the number of employees has leveled off and is still positive. In practice, this means that the number of personnel is estimated to continue to grow, but at a slower rate than before.
The slower growth of the number of employees is intuitive due to the changes in financial conditions. Startup companies must adapt to the new economic situation by using investors' money more carefully.
Confidence in startups’ own financial situation has still decreased slightly compared to the fourth quarter of 2022, likely due to the fear that the availability of venture capital investments will decrease during the first half of 2023. It is important to note that even in 2022, Finnish startups raised a record amount of capital from investors, at least 1.8 billion euros. The funding remained strong even in the last quarter of 2022. However, risks still exist regarding the financial conditions of startups.
"Startups are still concerned about how the changes in the availability of funding will affect growth opportunities during 2023. It is worth remembering that many startups make a lot of losses when they grow and engage for example in product development. The surrounding economic situation has changed dramatically and overall less money is available, and it has to be used more efficiently. Because of this, startups have had to adapt their operations in Finland quickly," summarizes Youssef Zad, chief economist of the Finnish Startup Community.
"The indicator describing the sentiment regarding the number of personnel has stopped decreasing, and startups seem to have a more positive attitude towards hiring new personnel. In my opinion, this indicates that our members still have good growth prospects and they need new employees, " continues Zad.
In the big picture, the startup community members are currently more pessimistic compared to 2022.
The barometer survey also maps the most critical growth barriers for startups quarterly. In 2022, the availability of skilled labor was by far the most significant obstacle for growth. However, the situation has changed in light of the latest data. Problems with the availability of skilled labor are no longer seen as the current most acute obstacle for growth and have been replaced by financing and financial difficulties.
"I interpret the answers to mean that startups have reduced recruitment while collecting funding is more difficult. When companies recruit a little more slowly, problems related to labor supply play a smaller role. In addition, according to the website layoffs.fyi, which tracks layoffs in the technology sector, since the beginning of 2022, companies in the technology sector have globally laid off as many as 335 thousand employees, which will likely increase the amount of available labor in those technology companies that need skilled workers," says Youssef Zad.
CEO of the Finnish startup community Riikka Pakarinen: "The fact that the challenges related to financial situation and funding have risen above the availability of labor as an obstacle to the growth of startups in this market situation does not dim the fact that the biggest bottleneck for growth in the long term is the availability of skilled labor. We need top experts for our companies from Finland, but also from abroad. The competition is fierce and global, Finland cannot be “just good enough” at the competition. We have to be the best in the world.”
Keywords
Contacts
Riikka PakarinenCEOSuomen startup-yhteisö / Finnish Startup Community
riikka@startupyhteiso.comYoussef ZadEconomistSuomen startup-yhteisö / Finnish Startup Community
Tel:+358405933316youssef@startupyhteiso.comImages
Links
About Suomen startup-yhteisö
Finnish Startup Community is a community of more than 200 Finnish growth companies and startups. We both bring entrepreneurs together to learn from each other and drive important issues for startups forward in Finland.
Subscribe to releases from Suomen startup-yhteisö
Subscribe to all the latest releases from Suomen startup-yhteisö by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Suomen startup-yhteisö
Suomen maakuva koki historiallisen romahduksen työn perässä maahanmuuttaneiden silmissä – Startup-yhteisön toimitusjohtaja Riikka Pakarinen: “Viimeistään nyt on herättävä”18.7.2024 16:00:00 EEST | Tiedote
Suomi sai tuoreimmassa Expat Insider 2024 -kyselytutkimuksessa kylmää vettä niskaan. Vielä viime vuonna Suomi sijoittui 53 maan joukossa sijalle 16, nyt sijoitus romahti sijalle 51.
Startup-yhteisö tuomitsee jyrkästi viimeaikaiset rasistiset väkivallanteot – valtiovallan ryhdyttävä konkreettisiin toimiin19.6.2024 18:07:33 EEST | Tiedote
Viime päivien tapahtumat korostavat, että rasistista väkivaltaa ei saa hiljaisesti hyväksyä eikä sitä pidä vähätellä. Rasismin torjuminen vaatii jatkuvaa työtä ja sitoutumista.
Eurooppa menettää osan kasvavista startupeista raskaan regulaation vuoksi – “EU ei ole oppinut vuosien saatossa läksyistään”6.6.2024 14:42:55 EEST | Tiedote
Viikonloppuna käydään myös kasvuyritysten näkökulmasta tärkeät vaalit. EU-parlamenttiin valittavien on oltava rohkeita ja annettava tilaa kokeiluille sekä suurille globaaleille innovaatioille.
Suomen startup-yhteisön Riikka Pakarinen: Investointipaketti luo kasvun eväitä, mutta ei yksin riitä. Mistä tekijät?16.4.2024 18:05:29 EEST | Tiedote
Suomen startup-yhteisö antaa kiitosta hallitukselle sen tekemistä talouspoliittisista linjauksista erittäin vaikeassa taloustilanteessa. Suomen talous on käännettävä kohti uutta nousua, menot on mitoitettava tulojen mukaan ja sen vuoksi hallituksen tekemät vaikeatkin päätökset ovat välttämättömiä.
Startup-barometri: Luottamus taloustilanteeseen kasvussa – rahoituksen saatavuus edelleen kasvun este11.4.2024 13:56:33 EEST | Tiedote
Tuoreimman startup-barometrin tulokset ennakoivat parempia aikoja suomalaisille startupeille. Arvio tulevasta taloustilanteesta on kohentunut asteittain vuoden 2023 alun pohjalukemista.
In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.
Visit our pressroom