--- title: "Finnish Business Finance in European Comparison: Money is Not the Key Bottleneck to Economic Growth" authors: - name: "Rouvinen, Petri" url: "https://www.etla.fi/henkilot/rouvinen-petri/" sameAs: - "https://orcid.org/0000-0002-7666-6971" - "https://scholar.google.com/citations?user=qYHEFroAAAAJ" - "https://twitter.com/Petri_Rouvinen" - name: "Ylhäinen, Ilkka" url: "https://www.etla.fi/henkilot/ylhainen-ilkka/" sameAs: - "https://orcid.org/0009-0009-1199-5780" date_published: "2025-04-08" series: "ETLA Raportit - Reports" series_number: "161" issn: - "2323-2447" - "2323-2455" jel_codes: - "E22" - "G30" - "G32" - "O16" language: "fi" publisher: "ETLA Economic Research" pdf_url: "https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-161.pdf" identifier: "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-161" abstract_translations: en: "Finnish businesses face fewer financial challenges than their European peers. To the extent financial challenges do exist, they disproportionately affect young, small, innovative, internationally focused, and growth-seeking companies. Our findings are based on extensive firm-level data. The data and our approach dictate that the results should be interpreted from the point of view of a representative firm and from a long-term, structural perspective, with a focus on debt financing. Finland’s financing challenges stem primarily from equity, not debt. The nation’s bank-centric financial system inadequately supports growth driven by intangible assets. Moreover, the growth ambitions and abilities of company owners, boards, and executives leave something to be desired. We posit that Finland’s fundamental issue is demand, not supply, of financing. Capital availability is sufficient. The core problem is insufficient initiative in identifying, capitalizing on, and scaling new ideas." --- # Finnish Business Finance in European Comparison: Money is Not the Key Bottleneck to Economic Growth **Published:** 2025-04-08 **Categories:** Reports **URL:** https://www.etla.fi/en/publications/reports/suomen-yritysrahoitus-eurooppalaisessa-vertailussa-raha-ei-ole-talouskasvun-keskeisin-pullonkaula/ #### Abstract Finnish businesses face fewer financial challenges than their European peers. To the extent financial challenges do exist, they disproportionately affect young, small, innovative, internationally focused, and growth-seeking companies. Our findings are based on extensive firm-level data. The data and our approach dictate that the results should be interpreted from the point of view of a representative firm and from a long-term, structural perspective, with a focus on debt financing. Finland’s financing challenges stem primarily from equity, not debt. The nation’s bank-centric financial system inadequately supports growth driven by intangible assets. Moreover, the growth ambitions and abilities of company owners, boards, and executives leave something to be desired. We posit that Finland’s fundamental issue is demand, not supply, of financing. Capital availability is sufficient. The core problem is insufficient initiative in identifying, capitalizing on, and scaling new ideas. --- ## Additional Information **Kirjoittajat:** Rouvinen, Petri - Ylhäinen, Ilkka **Kansikuva:** https://www.etla.fi/wp-content/uploads/etla-raportit-reports-161-kansi.jpg **Lataa Pdf:** https://www.etla.fi/wp-content/uploads/ETLA-Raportit-Reports-161.pdf **Key Words:** Business finance, Financial constraints, Debt finance, Economic growth **Jel:** E22, G30, G32, O16 **Paivays:** 08.04.2025 **Sivuja:** 36 **Kieli:** fi **Sarja:** ETLA Raportit - Reports **Sarja Nro:** 161 **Issn:** 2323-2447, 2323-2455 (Pdf) **Saatavuus:** 2 ## Bibliographic metadata (JSON-LD) ```json { "@context": "https://schema.org", "@type": "ScholarlyArticle", "@id": "https://www.etla.fi/julkaisut/id/ETLA-Raportit---Reports-161", "headline": "Finnish Business Finance in European Comparison: Money is Not the Key Bottleneck to Economic Growth", "inLanguage": "fi", "publisher": { "@type": "Organization", "name": "ETLA Economic Research", "url": "https://www.etla.fi", "logo": { "@type": "ImageObject", "url": "https://www.etla.fi/wp-content/uploads/logo-etla_logo.svg" } }, "datePublished": "2025-04-08T00:00:00+00:00", "author": [ { "@type": "Person", "name": "Rouvinen, Petri", "url": "https://www.etla.fi/henkilot/rouvinen-petri/", "sameAs": [ "https://orcid.org/0000-0002-7666-6971", "https://scholar.google.com/citations?user=qYHEFroAAAAJ", "https://twitter.com/Petri_Rouvinen" ] }, { "@type": "Person", "name": "Ylhäinen, Ilkka", "url": "https://www.etla.fi/henkilot/ylhainen-ilkka/", "sameAs": [ "https://orcid.org/0009-0009-1199-5780" ] } ], "abstract": "", "keywords": [ { "@type": "DefinedTerm", "name": "Business finance", "@language": "en" }, { "@type": "DefinedTerm", "name": "Financial constraints", "@language": "en" }, { "@type": "DefinedTerm", "name": "Debt finance", "@language": "en" }, { "@type": "DefinedTerm", "name": "Economic growth", "@language": "en" } ], "isPartOf": { "@type": "PublicationIssue", "issueNumber": "161", "isPartOf": { "@type": "Periodical", "name": "ETLA Raportit - Reports", "issn": [ "2323-2447", "2323-2455" ] } }, "mainEntityOfPage": "https://www.etla.fi/en/publications/reports/suomen-yritysrahoitus-eurooppalaisessa-vertailussa-raha-ei-ole-talouskasvun-keskeisin-pullonkaula/", "url": "https://www.etla.fi/en/publications/reports/suomen-yritysrahoitus-eurooppalaisessa-vertailussa-raha-ei-ole-talouskasvun-keskeisin-pullonkaula/", "hasPart": { "@type": "CreativeWork", "inLanguage": "en", "text": "Finnish businesses face fewer financial challenges than their European peers. 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