If you have considered doing business in Sweden or in the Nordics in general, this article will give you some good tips and ideas. Read about how to start a business in Sweden by Erik Behm, Investment Strategist at Invest in Halland @ Region Halland.
With a combined population of 27 million and a GDP of USD 1,5 trillion, the Nordic region is ranked as the 5th largest economy in Europe and the 10th largest economy in the World.
Sweden is ranked the fourth most competitive economy in Europe. The business in Sweden is often positioned within the highest-performing businesses worldwide. Sweden is known for its strong business climate, global reach, excellent language skills and high appetite for innovation.
Erik Behm has visited Bulgaria and the South-Eastern European (SEE) region multiple times. He has also facilitated visits to several exhibitions in Sweden by Bulgarian companies and helped to bridge SEE companies to businesses in Sweden.
Here is an interview conducted by the ConnectNordics team with Erik, sharing his great experience from which you can learn where to start your journey to the Nordics.
Erik, what do you find most attractive about the Bulgarian business?
I would point out the high technological level. The companies and the management are good. There is potential, especially in the field of IT services. The ability to work with different industries is also significant. I see a healthy mix of both more mature and young companies. Unfortunately, they are not visible enough in Northern Europe and for business in Sweden.
Find more about ICT in Bulgaria on the USA government website
What would be your estimation of the business potential between Bulgarian SMEs and Businesses in Sweden?
The potential for doing business in Sweden is vast. On one side, the challenge is to explain Why Bulgaria? Why should Swedish companies work with Bulgaria?
On the other side, the problem is explaining to a Bulgarian company why they should invest and start working with a Swedish one.
It is not what you think for a first choice on either side. But the potential is vast. I do not believe much in offshoring. I think nearshoring is best for small and medium-sized enterprises (SMEs).
Find more about Bulgaria-Nordic’s business potential on the ConnectNordics website
Can you tell us a bit more about Halland and the ecosystems in Halland?
The county of Halland is a mid-sized region with 350 000 residents. We have a lot of SMEs, and a few bigger ones, as well as a lot of startups that are growing. Stable SME companies do need both clients and suppliers. We have well developed industries in manufacturing, ICT, electronics, agriculture, food, health, forest industry, and advanced materials. We have a public sector with a good economy and a niche university.
Find more about doing business and investing in the Halland region at https://www.investinhalland.com/a-good-place-to-grow/bustling-business-community/
Where is the Halland business region aiming at?
Target is to get to the right companies, financial investment, and competence. We are well-recognized nationally but not internationally. We need to raise international visibility and be present at various events. To grow the ecosystem – this is the key to our development strategy.
Would you encourage Bulgarian companies to invest in the Halland region?
I would say the whole of West of Sweden, and Gothenburg within it is an excellent place to invest. Halland is close to its ecosystem and to Norway, Denmark, and the South of Sweden with Skane. It provides excellent starting opportunities, especially for SME companies.
Find more about doing business and investing in Sweden on the BusinessSweden website
Where can a small business or a startup find information about doing business in Sweden and the Halland region specifically?
I would suggest combining it:
- Talk to Valentin Stoev, commercial attaché at the Bulgarian Embassy in Stockholm
- Become a member of the Swedish Chamber of Commerce in Sofia
- Talk to us or another agency. Invest in Halland agency is an excellent entry point and facilitator. We provide information about the business potential of our industries.
About Swedish Bulgarian Chamber of Commerce
About Trade Section at the Bulgarian Embassy in Stockholm
Tell us more about Invest in Halland promotion agency
Invest in Halland is a regional investment promotion agency. We collaborate with the Bulgarian Embassy in Stockholm and Business Sweden (the national organization). However, Business Sweden has limited resources. They can not be everywhere and keep their focus on the more significant markets. In the case of Bulgaria, you could consider coming to us. We have a network of 24 sister organizations. Our services are free of charge to the investor. We would not guarantee you customers, but we could give you some advice and hints on whom to talk to.
We often participate in exhibitions where you can meet us and take some of our materials and brochures. You could also visit our website for additional helpful information in English and send your questions to us. I also think having several short meetings is better than having a very long one. The first meeting could be 10-15 min. You could ask questions, explain the strategy, and discuss approaches. Then we could plan a follow-up meeting and fine-tune your strategy.
Which countries invest the most in Halland at the moment?
We started on a full scale in 2021 and had no international presence prior. So the majority of the investors at the moment are Swedish. The biggest is in e-pharmacy Apotea, with the second Nordic warehouse in Halland. We also have the military and electronics company SAAB.
Are companies in Sweden open to international collaboration?
They need to understand Why and build trust with international businesses. They can not simply hire people. Attracting expats is difficult as well. The option is to use consultants, which is quite expensive.
We need to use the nearshore model to be efficient and competitive. I think that in order to overcome the trust barrier, Bulgarian companies need to establish a presence here. No need to be 100% on-site but some presence, for example, a co-working space will facilitate quite a lot.
What are your best tips for Bulgarian companies?
As I mentioned earlier, a Bulgarian company should have a presence here. Either a partner on-site, using one of our co-working spaces, or an office. We have discussions with several IT companies currently to open up an office. As explained, Halland is a mid-sized region outside of the three metropolitan areas. Our biggest city has 100,000 residents. On the other hand, in a bigger city, there are too many competitors.
I would advise companies to start with a mid-sized region like ours with less competition. Because when going to Gothenburg, for example, there are a lot of existing consultants already.
Then again, we should not limit ourselves to consultants and services and include product companies as well. Sometimes the real value comes from talking to the product-oriented companies as they are often the most interesting ones. I think they are increasingly collaborating on EU projects. Universities partnerships could also be a prospective choice.
I plan to visit Bulgaria in the first or second quarter of 2023 to attend some events and scheduled meetings.
Furthermore, there are interesting fairs and exhibitions in Gothenburg and Halland region, where a company could meet us. For example, Manufacturing and Electronics in April (https://www.elektronikmassangbg.se/en) is an excellent event to visit. We recommend that Bulgarian companies plan it in their calendars.
Find out more about Nordic Tech and Innovation events here.
Conclusion
To sum up some of the key tips from Erik, and the experience of the ConnectNordics team, here is what to consider when stepping into the Nordics market:
- First and foremost, define your offerings, strategy, and business goals. The “Why”
- Building trust is the most important aspect of doing business in the Nordics. Talk to Erik or other government representatives to get feedback on your strategy.
- Check your strategy regularly and fine-tune it by taking small steps – run a regular short meeting, for example. Do not expect to have all the answers in advance.
- Start small. Establish a presence, preferably in a smaller business region with less competition.
- Rent a small office, or a co-working space, or establish a partnership with a Swedish company.
- Plan your calendar with on-site visits and events. Create contacts and relationships. Build trust.
