World City Guide

Business

Business Profile
Helsinki’s geopolitical position and political neutrality make it the Baltic region’s commercial gateway to Sweden and Russia. It rates as one of the world’s top 20 conference centres and has played host to events such as the first US–Soviet summit in 1990, when George Bush met Mikhail Gorbachev.

One of the fastest growing cities in Europe, Finland has recently been rated as Europe’s most competitive country by the Swiss research institute, IMD, who praised it for its business practices, skills and its ability to be highly adaptable in adverse circumstances – adversity has characterised much of the city’s economic history over the last decade. When the regulated financial market was liberated at the end of the 1980s, the economy went into overdrive. The bubble burst at the beginning of the 1990s and over half a million jobs were lost almost overnight. The unemployment rate became the second highest in Europe, at a staggering 20%. In 1997, the city still suffered an unemployment rate of 17%, however, now boasts ‘just’ 8.5% – a comeback attributed to the government’s spending gamble – in line with the national unemployment rate of 8.2%. Cutting back on everything except education and research (one-fifth of all Finns have a university degree or equivalent) enabled Helsinki to become one of the world’s leading telecom equipment producers, making everything from mobile telephones to GSM networks.

The telecoms industry now vies with the country’s traditional exports of pulp and paper (each account for 40% of Finnish exports). Helsinki Technical University experts predict that within seven years, Finland’s software developers will employ as many people as the forestry industry does today.

Finland’s main international companies include Stora Enso, Finnair, Merita Nordbank and Leiras. Nokia is perhaps the country’s biggest success story, it is now the second-largest manufacturer of mobile phones and forecasts sales of 600 million units by 2004. The company has its headquarters in the Helsinki region. Business is centred on the Kamppi-Tlnlahti area, in the heart of Helsinki, while new high technology centres are breathing business life into Ruoholahti and Pitjnmki.

Business Etiquette
Standard office hours are 0800-1700, although flexible hours are very common. Lunch is the main meal of the day and is taken usually between 1200-1400. Helsinkiliset are punctual to the minute, always alerting a colleague of an impending delay, even if it is a matter of minutes – lateness is seen as a discourtesy.

Bertold Brecht is famed for saying that the ‘Finns are silent in two languages.’ They are a naturally reserved people and do not like speaking for the sake of it. Garrulous people are viewed with suspicion. When meeting for the first time, a handshake is customary, as is formal dress (suit and tie for men) but Helsinkiliset are not flashy; dress is more smart-casual and women often wear trouser suits. Business cards are vital.

Meetings and business deals are often conducted by telephone or at a sauna. Although these places are traditionally regarded as retreats, meetings often take place in these relaxed and less formal environments. Helsinkiliset are completely unabashed about going au natural into the sauna, which are sometimes mixed gender, although there are usually separate saunas for men and women and some sort of wrap is on hand. Saunas are never mixed in a business connection.

If invited to someone’s house for dinner, lateness (over ten minutes) is seen as a discourtesy. Shoes are usually removed before entering the house and a gift for the host, such as a bottle of wine or a bunch of flowers, is seen as courteous.