As part of the 'Policy Support for Industrial Resilience' online webinar which took place on the 26-06-2020, Rural SME Internationalisation Model in Finland was presented by Janne Hietaniemi, Senior Lead: Think Big – Go Global programme at NIHAK ry in the Nivala-Haapajärvi Region.
Small rural companies may have excellent products and strong know-how in their own speciality field but scarce contacts to international markets and understanding how to reach them. Model presented is a good example how other firms and public institutions can act as alongside the walker during this marathon from rural start-up to growing international company.
Image: Business negotiations to connect Finnish and Chinese industry at Shanghai. Photo: Ari Alakangas, Export Manager Nivala-Haapajärven seutu NIHAK ry (i.e. Nivala-Haapajärvi region NIHAK ry)
Rural SME export promotion model aims lowering thresholds to internationalisation by peer network and shared marketing. Role of the facilitator is to act as an intermediary and to build neutral platform for companies to explore joint opportunities and prepare cooperation without preliminary commitments. Low-threshold cooperation platform facilitation of cooperation relies on serving company specific needs, finding opportunities to shared value creation and building trust. This decreases risks and enables to increase level of commitment carefully.
Role of the facilitator is to act as an intermediary and to build neutral platform for companies to explore joint opportunities and prepare cooperation without preliminary commitments. Facilitation of low-threshold cooperation platform relies on serving company specific needs, finds opportunities to shared value creation and builds trust. This decreases risks and enables to increase level of commitment carefully. By supporting collaboration between different size and maturity level companies it is possible to compensate distance to international markets and to enable forming more competitive exportable product families.
Supporting collaboration between different size and maturity level companies compensates distance to international markets, but also enables forming more competitive exportable product families. Alongside-the-walker perspective allows to notify the stage of maturity level and support applying national development instruments, such as Business Finland and Team Finland, in right stage. With gained higher maturity level, companies will success then with support and again to pull other companies to international markets in the slipstream.
Supporting internationalisation of company may be a long-term process. As its best from one year to as long as five or more year, depending on the maturity level of the company. However, there are already evidence that this practise has been useful for these rural companies, since the number of participants in each project have exceed the estimated/budgeted number and the participated companies have continued to following programs. By the end of November 2017 there has been total number of 304 participated companies, which is more than half of the companies in the region that are involved in international operations.
This good practise is built on close and trustful, continuous discussion between all stakeholders, therefore the most important resource committed personnel with right kind of attitude and understanding. It is important to discuss with entrepreneurs in their everyday life circumstances using their own language and really understand their needs to be able to support them. SMEs gain on meeting each other and taking steps towards internationalization together.
Total budget 1.9.2009 – 31.12.2022 €3.4 million across five projects
Image: Participating company stand in German fair. Photo: Ari Alakangas, Export Manager Nivala-Haapajärven seutu NIHAK ry (i.e. Nivala-Haapajärvi region NIHAK ry)
For more information: Janne Hietaniemi (Senior Lead: Think Big – Go Global programme at NIHAK ry), e-mail: [email protected], phone: +358 50 591 9399
