1. © TNS Estonian and Latvian business environment survey Aire Trummal TNS Emor Estonian-Latvian cross-border small and medium enterprise cooperation for expansion to neighboring markets 01.10.2012, Tartu

2. © TNS Study objective and methodology 2 Ordered by the Estonian Business Chamber in Latvia and Valga Town Government in the framework of the DELBI project. Objective: To map the need for support network and partnerhip search, interest in cross border cooperation and hindering factors. Target group: companies with 1-99 employees, 6 regions in South Estonia and 11 regions in North Latvia. Sample: 150 Estonian and 154 Latvian companies. Random sampling, distribution of the sample the same as in the study universe (according to sector, region, number of employees). Data collection: Computer Assisted Telephone Interviewing, in August 2012. Majority of the respondents were managers of the company.

3. © TNS 3 ESTONIA: Pärnu-, Tartu-, Põlva-, Valga-, Viljandi- and Võrumaa.

4. © TNS 4 LATVIA: Alūksnes, Cēsu, Gulbenes, Limbažu, Madonas, Ogres, Saulkrastu, Siguldas, Valkas, Jūrmala, Valmiera.

5. © TNS Profile of the companies (1) 5

6. © TNS Profile of the companies (2) 6 26% of Estonian and 48% of Latvian companies have a development plan.

7. © TNS Level of cooperation

8. © TNS Countries where products/services are marketed 8 ESTONIA Estonia Latvia Lithuania Other European states Russia other LATVIA Latvia Estonia Lithuania Other European states Russia other

9. © TNS Cooperation with companies in the neighbouring country 9 Main areas of cooperation:  Estonia: import of goods from Latvia, export of goods to Latvia.  Latvia: import of goods from Estonia, export of goods to Estonia, exchange of information and knowhow. Main reason for stopping the cooperation: was not profitable.

10. © TNS Reaons for not operating in the market of the neighbouring country 10 ESTONIA LATVIA Not enough initiative The market is not attractive enough Our goods/services are not suitable Not enough information Latvian or Estonian regulations are hindering Language barriers Not enough resources or work force Enough work in the home country/ no need Have not thought about this possibility other From those who have never cooperated. „Other“: distance, we work for a bigger company, locals provide enough service themselves.

11. © TNS Interest in doing business on the neighbouring market 11 19% of Estonian and 39% of Latvian companies would be interested. ESTONIA LATVIA From those who have never cooperated or do not do it anymore.

12. © TNS Need for information

13. © TNS The level of knowledge on marketing oportunities in the neighbouring country 13 23% of Estonian and 35% of Latvian companies consider their current knowledge to be good.

14. © TNS Looking for or obtaining information on the marketing opportunities in the neighbouring country 14 ESTONIALATVIA Through business partners or acquaintances On the Internet By visiting companies in the neighbouring country At a seminar or conference Media other Have not obtained any information Obtaining information during last 12 months. „Other“: communication with consumers, professional association.

15. © TNS Need for information on the economy and market of the neighbouring country 15 ESTONIALATVIA Economy in general Legislation and tax system in general Establishing a branch-office Establishing a company Market situation of a spesific field Different marketing oportunities Cooperation possibilities with companies Thematic seminars/trade fares/events other Do not need any information „Other“: price level in the market, economic situation of the companies.

16. © TNS Suitable information channels for finding partners for cross-border cooperation 16 ESTONIA LATVIA Internet based database for looking for partners Information point with face to face service Information hotline Trainings or seminars other Do not need information for finding cooperation partners From those who cooperate in the neighbouring country or have the interest to begin. „Other“: trade fairs, internet, through partners, personal consultations.

17. © TNS Conclusions

18. © TNS 18 Cooperates or has cooperated in the neighbouring country Has the interest to begin cooperation Has good knowledge Has obtained information during last year Needs information Has a strategic plan Has 5 or more employees Was founded more than 10 years ago  The interest and the level of activeness of the Latvian companies is higher. They also plan their activities more – companies with strategic plans cooperate more.  The more passive state of Estonian companies is also related to their smaller size – companies with 1-4 employees are less informed and do less strategic planning.

19. © TNS 19 THANK YOU!