SEB Bank study: one in five Lithuanian residents plans to start a business

Eglė Dovbyšienė, member of the board of directors of SEB Bank and head of the retail banking department, notes that this figure remained the same as at the beginning of the year after conducting such a study. One in four respondents (26%) are unsure whether or not they want to start their own business.

Preferences are influenced by economic forecasts

Two years ago, 36 percent of people were considering starting a business in Lithuania. At the beginning of this year, the number of future entrepreneurs fell to 18 percent, and currently their number has remained almost unchanged (19 percent). Studies in Latvia and Estonia have shown that the number of people wanting to start a business in these countries is decreasing: from 27 to 24 percent in Latvia, from 20 to 17 percent in Estonia.

“Last year, the Lithuanian economy experienced a shock of extremely high inflation, which will be remembered for a long time. Optimism is also tempered by Russia’s endless war against Ukraine. Rates of With ever-increasing interest, the approach of the heating season and the expected seasonal rise in energy prices are prompting people to be more cautious in their assessment and planning for the future. Currently, while there is “There is still a lot of uncertainty, people tend to choose stability and security, so they are more cautious and less bold in starting their own business”, commented E. Dovbyšienė about the dominant entrepreneurial trends in the Baltic States.

On the other hand, the forecasts presented by SEB bank economists in August give hope for a recovery in consumption in the country thanks to the faster than expected drop in inflation and the resumption of income growth. real. Economists predict that this year Lithuania’s GDP will decrease by 0.2 percent, and next year, due to reduced forecasts of the Eurozone’s GDP for 2024, it will increase to 1.8 percent. It is clear that economic indicators influence the expectations of the population, that is to say, they dampen the desire to go into business, the press release said.

Different business cycles are valuable experiences

According to Banque SEB, it typically takes several years to start and accelerate a business, and different economic cycles offer entrepreneurs different and valuable experiences in their own way.

“The most important factors for starting a business are confidence, the desire to know more and learn. It is these attitudes that promote the ability to see opportunities and take advantage of them. Availability of information has never been greater than today. And knowledge and experience make it easier to understand administrative and bureaucratic processes, as well as find favorable financing conditions and practical support, “said E. Dovbyšienė.

A study carried out at the initiative of Banque SEB showed that, when it comes to starting a business, 38 percent of people indicated that the opportunity to acquire additional knowledge and skills is most necessary. Almost a third (27%) of respondents admitted that practical support, for example when registering a business, would be very useful. One in two people (50%) said starting a business would require financial support and favorable financing terms.

On the orders of SEB Bank, in August this year, the Norstat company conducted a survey in the Baltic countries. 1,000 people participated in the survey. Lithuanian residents aged 18 to 74.

Source: The Delfi





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