Nopef’s financing support creates more jobs

Nopef finances feasibility studies for Nordic small and medium-sized enterprises. Photo: Shutterstock

Over half of the Nordic small and medium-sized companies which have established an international presence with financing support from Nopef experience stronger growth and increased employment in the Nordic countries.

This is shown by Nopef’s customer survey, conducted among companies that received support in the period 2009-2012.

The survey also shows that the support has a strong driving effect to allow the projects to get underway. The purpose of the customer survey carried out in October 2015 was to evaluate the results and effects of the Nordic foreign establishments that have been implemented with Nopef’s financing support. The total value of the grants provided by Nopef stands at EUR 4.5 million in support for internationalisation of the 137 Nordic companies included in the survey.

The majority of the companies surveyed state that the completed foreign establishment has created positive effects through improved competitiveness, new opportunities for technology and knowledge transfer, and by supporting the companies’ employment in the Nordic region.

According to the survey results, Nopef’s financing has contributed positive economic effects for the companies through increased levels of employment and turnover. Each foreign establishment has created an average of 14 jobs – two of which in the Nordic region and 12 in the project country. Nopef has thereby contributed to creating an annual estimated 78 jobs in the Nordic countries and 400 new jobs in the project countries during the years 2009-2012.

The survey results show that Nopef’s financing operations have provided a significant added value in connection with the companies’ foreign establishment. Of the small and medium-sized companies that have established an international presence with the support of Nopef, an estimated 61% think that the support has had an influential impact on the decision to expand their business abroad. The survey also shows that the international establishments have created long-term effects, with 93% of the companies still in business in the project countries three years after start-up.

The participating companies state that their international business establishments have created an average of EUR 1 million in direct investments and resulted in approximately EUR 2.7 million in project related sales over the following three years. Nopef has therefore contributed in annually generating around EUR 28 million in direct investments and around EUR 91 million in project related sales.

The Nordic Project Fund (Nopef) was established by the Nordic countries in 1982 and is today administered by NEFCO and financed by the Nordic Council of Ministers. To date, Nopef has provided over EUR 100 million in funding distributed over 2800 projects.

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