Evaluation: Finnvera is a professional and necessary provider of special funding
Finnvera’s operations in the financial market are generally appropriate and efficient. At present, the company has achieved all the objectives set in legislation and by MEE steering. This is revealed by an evaluation commissioned by the MEE, which was published on 26 June 2012 in Helsinki.
Finnvera plc is a specialised financing company owned by the State of Finland. It provides its clients with loans, guarantees, venture capital investments and export credit guarantees. The report presents a view of Finnvera’s role in its operating environment as part of the MEE group, from the perspective of 2020.
“The evaluators state that Finnvera operates professionally and plays an important role as a provider of services to domestic clients and as a financier of exports, in particular. More attention should be paid to growing enterprises and undertakings going international in the development of Finnvera’s activities and our industrial policy,” said Jyri Häkämies, Minister of Economic Affairs.
The report urges the state to take a more strategic approach to Finnvera. It should focus even clearer on the internationalisation and growth of enterprises. This is why the company’s product range could be reduced. Finnvera should focus on products that encourage private risk-taking.
The evaluators emphasise that Finnvera should strengthen cooperation with other operators within the MEE Group. The goal is to provide as customer-oriented services as possible.
Clients using Finnvera’s services in Finland and abroad appreciate the company. However, Finnvera was not as highly esteemed among SMEs seeking strong international growth. The focus of services should be shifted towards growth companies and a renewed risk policy. In the case of projects of great potential that are difficult to assess, sharing the risk with companies may support structural change.
“As recommended by the report, the MEE will appoint a working group to examine how the recommendations can be best implemented, for example, to increase the ability of Finnvera’s products to meet the needs of the market. Customer focus will be the cornerstone of the working group’s activities. In addition, the Ministry will take a more strategic approach to Finnvera in its steering,” commented Minister Häkämies.
The authors of the report were Jarna Heinonen, Professor, University of Turku, Turku School of Economics, and Diana Smallridge, Director, International Financial Consulting Ltd, with their research groups. The evaluation in English can be read on the Ministry’s website at www.tem.fi/publications
Jarna Heinonen, Professor, tel. +358 50 5631 713
Jouni Hakala, Secretary of State, tel. +358 29 50 62662
Pekka Lindroos, Commercial Counsellor, MEE, tel. +358 50 396 3313