Innovaatiotilannekuva

Analysis of growth period 2012-2015: Micro-companies full of growth potential

The number of growth companies began to rise after the fall that took place in the previous growth period. The Tampere Region share of all the country’s growth companies remained, however, slightly under 9% (2011–2014: 8.7%; 2012–2015: 8.8%).

The number of growth companies has increased in the Tampere City Region and north-western Tampere Region, and has stayed close to the numbers of the previous growth period in the other areas of the region. The majority of growth enterprises are located in the Tampere City Region. The division of growth companies between other areas in the region is fairly even.

 

During the latest growth period, there were 64 growth companies listed in the Tampere Region that met the preferred OECD and Eurostat definition of a growth company. The initial number of employees in such an company must be at least ten people at the beginning of the growth period and its average annual growth rate at least 20% over the next three years. The graph below also includes companies whose average annual growth reached at least 10%. There were 176 such companies in the Tampere Region.

Growth companies by industrial classification in Tampere Region in the 2012-2015 growth period. Source: Statistics Finland

Growth has been generated both in labour- and competence-intensive sectors. From among the companies that have grown at least 20% in a year, the majority operate in the field of different business services (sections M and N), industry (C), construction (F) and information and communication (J). When examining the sector distribution of companies that have grown more moderately, the trade sector (G) is highlighted in addition to the above-mentioned.

 

In proportion to the number of locations, the information and communications sector growth companies seem to be concentrated in the Tampere City Region, i.e. in the city region the share of the sector is greater among growth companies than among locations. Instead, for example, the share of industry from among the growth companies is larger than the share of locations around the Tampere Region, and the same applies to growth companies in professional services and to growth companies related to transport and storage services.

The majority of growth companies in the Tampere Region are small companies, i.e. they employ less than 50 people. Employment by growth companies grew in total by over 9,000 people during the growth period. At the end of the period, the total number of people in growth companies was a little under 18,000 in the Tampere Region. 

 

Factors behind the growth are only available on a national level. The most common cause behind the growth of the companies, which have grown by at least 20% in a year, was genuine growth linked to the expansion of business operations. An increase in personnel related to the expansion of business operations was a contributing factor in about half the growth companies. When taking a look at the growth companies with a wider set of criteria, genuine growth was an explanatory growth factor in almost 80% of the growth companies.

There were 297 small growth companies, i.e. companies that employed under three people at the beginning of the growth period, in the Tampere Region (2011–2014: 281). Small growth companies embody solid future potential – they are likely to keep growing in the future and their employment effect may become significant. The personnel of micro-growth-companies in the Tampere Region more than tripled by the end of the growth period. The majority of these growing micro-companies are construction companies (23.8%). Strong demand in the construction field and significant infrastructure projects are also evident in the growth of the companies. Companies operating in the field of professional services and trade also stand out among the small growth companies.

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