New Study Reveals the True Impact of Finnish Family Businesses

The research shows that family-owned companies form the backbone of the Finnish economy, playing a crucial role as employers, investors, and drivers of regional vitality.

There are nearly 78 000 family-owned companies in Finland, accounting for 73% of all businesses. Together, they employ more than 536 000 people—42% of the private sector workforce—with their importance particularly pronounced outside the Helsinki metropolitan area. In many regions, family businesses are among the most significant local employers.

Contrary to the stereotype of being overly cautious, family businesses invest more actively than other companies. Their investment rate stands at 5.6%, compared to 4.5% for other firms, supported by stronger equity ratios.

The study also finds that family businesses with more than 50 employees grow and internationalize faster than non-family firms of similar size. While smaller family firms tend to grow more moderately, larger family-owned companies demonstrate strong competitiveness and expansion potential in global markets.

Commissioned with support from the Jenny and Antti Wihuri Foundation and the Finnish Family Firms Association, the study is the first comprehensive analysis covering all Finnish limited liability companies. It highlights the significant yet often underreported role of family businesses as the true backbone of Finland’s economy.

Read the report (EN)