1. The Nordic Welfare Model-
opportunity or threat for entrepreneurship?
“Building the Entrepreneurial University” at
Stanford University 12-16 November 2012 by Mr.
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Juha Perälampi, Manager of JAMK Business
2. What do you get for your tax dollar?
• Free education from Kindergarten through
University
– Includes free meals, school materials, books, pencils,
paper, counseling, etc.
– University students are PAID to study including housing
• Unemployment benefits between 50-80% of
your income
• Pension 60 % of your income
Juha Perälampi 13.11.12 2
3. What do you get for your tax dollar?
• Free pediatric care
• 50 dollars a year covers all healthcare
for adults
• Medications
• Maternity leave 75 % of your income
level up to 9 months
• Monthly stipend for each child
Juha Perälampi 13.11.12 3
4. The nordic countries
• Common history
• High income level
• Equality principle
• The Nordic
Welfare Model
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5. challenges
• Globalization (outsourcing)
• EU Crisis
• Demographic transition
”Collective risk sharing should continue to offer a safety
net which helps workers and their families to cope
with risks and adapt to new circumstances”
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6. Finland in perspective
• The Best Country in the World: Newsweek
• The Most Successful Nation: The Fund for peace
report
• 2nd Happiest Nation: United Nation's World Happiness
Report
• 3rd Most Competitive Economy: The Global
Competitiveness Report
photo courtesy of FreeDigitalPhotos.net
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7. Tax burden
• Income tax: max 50 % + social costs 6 %
• Significant deductions for home owners and
underprivilidged
• Capital gains tax: 30%
• Corporate tax: 26%
• Sales tax: 23%
• Dont get pulled over! Speeding tickets may
be priced according to your income!
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8. A knowledge-based economy
• The major ecocomic and political processes paved
the way for Finland’s high-tech industries and
educational reform
1. The turmoil in the Soviet Union 1991
2. A deep and severe economic recession triggered by a
Finnish banking crisis (1990-1993), unemployment
hit 20%,
3. Integration with the European Union (1992-1995),
membership 1995
4. Eurozone Crisis 2009-
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10. Education #1
• The main transformer of social and economic
development since the 1940’s
• The Finnish education system rated as one of the
best
• Equal educational opportunity for all
• Almost all teachers have a Master’s
degree
• Teaching is a high-status profession
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11. Education #2
• Education leads the way to employment, not
entrepreneurship?
• Are you allowed to stand out and shine?
• Is this equality principle the right soil
high-growth entrepreneurship?
photo courtesy of FreeDigitalPhotos.net
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12. ”NICE-GROWTH”
”For about two decades building a succesful venture
capital (VC) industry has been among the central policy
objectives in Finland. However, with its high-guality,
white- and blue-collar human capital, but small internal
market and limited VC industry, ”nice-growth” firms
might better fit Finland’s profile of unique advantages
and social values.”
- Professor Martin Kenney, University of California,
Davis
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14. Finland strong Points
• Very industrialized economy, based
mainly on the free market
• Nokia and Rovio Entertainment
• Significant investments done in R&D
(ranked 3rd in the world)
• Investing in education and innovation during
recessions
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15. finland Weak Points
• A limited domestic market
• Relies heavily on exports
(40% of the GNP)
• In Finland, it is acceptable to become
rich by winning the lottery or being an
athlete, NOT by employment nor being
an entrepreneur
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17. Mindset #1
• Diplomacy and seeking consensus
• Problem-solving and efficiency
• Accountability and honesty
• Sisu=determination and
strength of will
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18. Mindset #2
• ”The Finnish Dream”
• Older generation has laid the
very foundations of the success
story, hard to ”let go” and
understand that foundations
need to be changed
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19. Enrepreneurship creates jobs and
calls for global cooperation
“During the next 10 years about 1.2
billion young 15-to-30-year-olds will be
entering the job market. With the means
now at our disposal, about 300 million
will get a job. What will we offer these
young, about a billion of them? I think
this is one of the greatest challenges if
we want to achieve peaceful
development and hope for these young.”
- Mr. Martti Ahtisaari (former President of Finland
(1994-2000) and Nobel Peace Prize winner 2008)
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20. Thank you!
Questions and comments?
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21. Contact information
Mr. Juha Perälampi
Manager, JAMK-Business Incubator
Senior Lecturer,
International Business and Entrepreneurship
tel. +358 (0)41-534 3603
Email: juha.peralampi@jamk.fi
JAMK University of Applied Sciences
Rajakatu 35, FI-40200 Jyväskylä, Finland
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