Nordic Startup Ecosystem. A Short Review

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By Andrew Tsopych
December 26, 2019

When it comes to defying the importance of startups for society in general, the two main perceptions to be shared globally are their ability to generate innovation and employment. According to the EU Startup Monitor, 99.3% of all recently founded SMEs offer online solutions in B2B and B2C sectors. Countries in northern and western Europe have the biggest amount of paramount startup hubs to empower the local business community. Copenhagen alone has 4 of them, with Paris (3) and Berlin (2) following Danish city on the list. 

Needless to say that the majority of new businesses in those regions have a lot to do with tech and IT, as these industries are on the rise during the last couple of decades. Home to such companies as Monzo, Atom Bank, or Zoopla Europe accounts for more than 200 tech unicorns. However, not all of them have become profitable over their existence.

The greatest concern of SMEs is maintaining profitability. Although one can name dozens and hundreds of reasons why an average startup may be lacking money, human costs and high competition are the most widespread. While the latter solely depends on the quality of the initial company’s unique idea, the first problem can always be solved by thoughtful outsourcing of the workforce.

On our recent business trip to Oslo, we have talked to lots of entrepreneurs to understand what struggles they have to overcome to accomplish their goals. As a rule of thumb, a lion’s share of them mentioned high IT development expenditure. Yet the tendency to have an in-house team of devs working on a project is still in place, a few parts or even the whole department is now the responsibility of dedicated teams. 

The key point of having a well-structured combination of local and foreign IT specialists is trust. Let’s be honest, this aspect can be fully reached only by a personal acquaintance of both parties. To build this professional bond, Intobi’s employees often fly to their clients in other countries. That is how outstaffing should be done and practiced to combat stereotypes of outsourcing being inefficient and shady.

We chose Northern Europe as our target market due to its entrepreneurs’ mentality and attitude towards establishing an international company from the very beginning. Both entities benefit from open communication and honesty in the long-run. Intobi encompasses all skills required to build this trust and help its partners to thrive.

Being pulled to the dark hole of unreliable freelancers? Bring your specifications to our CTO and we will provide you with a free consultation.

By Andrew Tsopych
December 26, 2019

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