We wish to
thank KasvuOpen and all those companies which were in Järvenpää for a
possibility to examine how Russian market possibilities are viewed in Finland.
In particular we were interested how the Finnish growth companies perceive the possibilities
of Russian markets for their companies.

Next in
this blog please find a summary of the answers given in that morning. In the inquiry
we made three questions. The answers to questions are provided below. Please
note that we have codified and collected the answers so that individual
companies cannot be recognized.

Our goal here is not to focus on individual
answers but to provide a general picture how those growth companies in
Järvenpää event saw Russian markets. This is clearly a short snapshot and much more
research is needed in the future. Hence, our aim is not to provide carefully
analyzed research results, but more to tentatively explore how some Finnish
growth companies perceive Russian markets.

• • Potential market area
  • Procurement from Russia most interesting topic
  • Are we too quick to look only Europe without also examining
    possibilities in Russian markets, in particular possibilities for special
    Finnish products
  • Russian markets feel distant and unknown, no direct connections to
    actual operators

• • A possibility to get big volumes, large markets, close vicinity
  • A feasibility to develop products/services, which would be new in
    Russian markets
  • An option to find special clientele for high quality products
  • Perhaps new demand for health care products
  • Might open new possibilities to tailor large product/service packages to
    customers

• • How to find right partners
  • Logistical challenges
  • Volumes (if too large, can we
    provide)
  • No connections, no language skills,
    no knowledge about the market possibilities, no idea how to start to enter into
    Russian market
  • Marketing knowhow in Russia is
    lacking, feels that language and culture are unknown
  • Political decision making (quick
    changes in rules, legislation
  • Paperwork (a lot of documents and
    things to consider)

In sum
Our tentative hypothesis was that Finnish growth companies may not
examine Russian market potential carefully enough. This hyphotesis which is
here more an educated guess than a formal hypothesis is based on our
observations in numerous events and discussions with entrepreneurs and growth
business operators. This short inquiry and discussions during the day gave us
some confirmation that there is clearly a justification for our hypothesis.

It is always to case that companies are different and some companies are
successful on some market areas, and some on the other. We might even propose
that in a same way as a true knowledge on personal level is self-awareness
(know thyself) – the same way companies should know their unique strengths and
where they are at their best.Perhaps
some companies might be strong on some market areas, which they have not
explored so far. At the same time it is an undeniable fact that international
business is always demanding endeavor.

In this blog we have not aimed to examine carefully all the details
which relate to doing business in Russia and whether Russia might be easier or
more challenging market for Finnish growth companies than some other market
area. However, in general we wish to suggest that Finnish growth companies
would benefit in examining also those business opportunities which exist in
Russia.

Also it is important that we all who work for the business development
in our own way create ways to help Finnish growth companies to take successful
steps into Russian markets. Here we wish to mention three operators who might
have an important role in opening new routes to Russian markets.

First, let us start with the existing operator. For instance, the Finnish-Russian Chamber of Commerce (FRCC) is already active in opening
connections to Russia and helping companies to prepare themselves into Russian
markets.

Second, we suggest that KasvuOpen should consider opening special
Russian growth path in the future. Perhaps one event in Helsinki, one in Saint
Petersburg. KasvuOpen has the expertise
to find most potential growth companies and organize valuable coaching events
for those companies. It would be important if KasvuOpen would use its expertise
on this area and boost growth into Russian markets.

Thirdly, let us not forget our own role, also Universities could offer
new services. In fact, our goal is to open new EMBA program
in Saint Petersburg. That would be collaboration between University
of Jyväskylä and Peter the Great St. Petersburg Polytechnic University.

The program would follow the structure of the AMBA accreditedAvance Executive MBA program which is a country wide
program in Finland. Avance Executive Education at the University of Jyväskylä is also
most willing to develop tailored programs for companies and organizations which
wish to increase their international collaboration and business capabilities, in
Russia and in other market areas.

Authors of this blog:

Professor, Dr Tatiana Khvatova

Higher School of Business and Management

Peter the Great St. Petersburg Polytechnic University

Director Ari Manninen
ari.manninen(at)jyu.fi
Avance Executive Education
University of Jyvaskyla