Nordics Business Climate Survey For Irish Companies In 2024

As we present the 2024 Business Climate Survey for the Nordics, we are pleased to share insights that highlight the dynamic and promising opportunities for Irish companies in this vibrant region. The Nordic countries—Denmark, Sweden, Norway, Finland, and Iceland—continue to demonstrate political and economic stability, innovation, and a commitment to sustainability, making them attractive markets for Irish businesses.

The survey results underscore the strong trade relationships and the positive perception of 'Brand Ireland' across the Nordics. Evidently, Irish companies are well-positioned to leverage opportunities in the Nordics, driving innovation and sustainable development. This reflects the ambition and appetite for success among Irish companies in the region.

We extend our gratitude to the participants who contributed to this survey. Your experiences and perspectives are crucial in shaping our understanding of the business climate and guiding our efforts to support Irish enterprises in the Nordics.

The insights gathered in this survey will hopefully serve as a valuable resource for businesses looking to expand or strengthen their presence in the Nordic region. Together, we look forward to a future of continued success and mutual prosperity.

We hope you enjoy the read.
Le gach dea-mhéin,

Hannah Fraser

Director Nordic Region
Enterprise Ireland

An overview of the survey results are shown at the end of this article.

The Nordic Markets

The Nordic Region comprises Denmark, Norway, Sweden, Finland, Iceland, as well as the Faroe Islands, Greenland, and Åland (The Nordic Council, 2024). The Nordics boast one of the oldest and most comprehensive forms of regional political collaboration, aspiring to be the most sustainable and integrated region globally. It is among the richest in terms of per capita GDP, having successfully adapted its welfare model to the global economy.  Sweden, the largest country in the region, has the highest population and is renowned for having the most unicorns per capita after Silicon Valley, with 3% of its GDP dedicated to research and development.

The region is dedicated to global responsibility, actively participating in environmental and social justice initiatives. From minerals and petroleum to wood and hydropower, the Nordics are rich in natural resources, which are safeguarded and harnessed for sustainable energy, showcasing innovation in the bioeconomy. With one of the most highly educated populations, the region collaborates on research to address climate change and other global challenges. Given all these factors, it is no surprise that the Nordics consistently top international rankings in gender equality, transparency, trust, freedom of speech, the environment, and happiness, making it a model region admired worldwide (The Nordic Council, 2024).

In 2023, Irish exporters, backed by Enterprise Ireland, achieved a milestone with exports reaching an unprecedented €34.57bn. Irish exports to the Nordic region saw a significant increase of 15%, reaching a new record high of €1.7bn. This growth has made the Nordics as the fastest growing region globally for Irish exporters.

Ease of doing business

According to the survey, the Nordics are generally seen by Irish companies as favourable for business, with Sweden, Norway and Denmark standing out due to their shared business culture with Ireland, mature customers, and strong economies. For instance, Denmark's thriving life sciences sector continues to create opportunities despite a local talent shortage. Being part of the EU also enhances the ease of Irish companies doing business in the region alongside the value Nordic partners and customers place on premium products and professional relationships, with English widely spoken. Both Sweden and Denmark feature excellent infrastructure and significant activity in various markets, including offshore wind, making the Nordics a supportive business environment with manageable challenges.

Nearly a third of the surveyed Irish companies employed staff in the region and most found the availability and quality of talent to be good. The main challenge mentioned when recruiting and retaining employees is the high individual tax rates and cost of living, particularly in Sweden and Denmark. Companies must also navigate the market effectively and engage with the right stakeholders, especially given the challenging economic environment of recent years. However, despite these hurdles, there is a positive outlook for recovery in the near future.

Sustainability is considered very important across all Nordic markets. This emphasis is driven by major local players who expect their suppliers to follow suit. According to the Irish companies doing business in the region, the importance of sustainability in the qualification and contract award phases is growing year-on-year, as a green image is highly valued in all Nordic countries.

Nordic Ambition

Irish companies are optimistic about their growth prospects in the Nordic region and the corporate tax and regulatory environment are generally viewed as favourable. Based on the survey results, the market potential for Irish products and services is perceived as good across the region, particularly in Sweden and Denmark, even though Denmark is considered to be the most competitive market. There is a strong desire among these companies to expand further across the Nordics, either by partnering with suitable distributors or establishing a local presence, with positive outcomes anticipated in the coming years. 

With the help of local distributors Irish companies are exploring opportunities in sectors such as High-Tech Construction, Life Sciences, Technology & Services, and Agriculture. Sweden and Denmark are experiencing steady annual growth, while Iceland, Norway, and Finland also present promising opportunities for Irish companies. Survey results show that profitability for exports in the Nordic markets has steadily increased over the last three years with many Irish companies expecting their exports to grow over the next 3-5 years.

Ireland X Nordics Business Relations

The shared business culture, mature markets, and strong economies of the Nordic countries create an ideal environment for Irish exports. The region's emphasis on premium products and professional relationships aligns well with the strengths of Irish businesses. Additionally, the widespread use of English and excellent infrastructure further ease the process of doing business.

Bilateral trade relations between Ireland and the Nordics are robust and thriving across the region. "Brand Ireland" is highly regarded, particularly in Sweden and Denmark, where it is seen as a mark of quality and reliability. This positive perception has been instrumental in fostering strong business ties and facilitating market entry for Irish companies.

Enterprise Ireland's on-the-ground support in the Nordics has been crucial in strengthening relationships and providing Irish businesses with valuable insights, resources, and connections to navigate local markets effectively. The strong trade relationship between the Nordics and Ireland, supported by Enterprise Ireland's efforts, creates a promising business environment. As a result, Irish companies are well-positioned to thrive, with ample opportunities for innovation and sustainable development, paving the way for continued success and mutual prosperity.

Sources

https://www.norden.org/en

Contact us:

Enterprise Ireland Stockholm Office

Hovslagargatan 5A

111 48 Stockholm

Sweden

Enterprise Ireland Copenhagen Office:

Hub Nordic

Arne Jakobsens Alle 15

2300 Copenhagen

Denmark

Email: nordics@enterprise-ireland.com

LinkedIn: Enterprise Ireland Nordics

Overview of Survey Results

Sector Snapshot

Years exporting in Nordic markets