Coronavirus support preserved 40,000 jobs but business subsidy system needs to be enhanced for future crises
The coronavirus support granted to businesses helped to maintain more than 40,000 jobs in Finland during the first year of the pandemic. The majority of jobs were preserved thanks to Business Finland’s COVID-19 funding programme. These are the conclusions of a study by the Research Institute of the Finnish Economy (ETLA) titled The Effects of Covid-19 Business Subsidies in Finland – Final Report. The study commissioned by the Ministry of Economic Affairs and Employment was published on 23 January 2025.
Meanwhile, the support granted by ELY Centres to small companies had the most positive impact on the operations of companies, especially labour productivity. Support for business costs reduced the risk of bankruptcy. Despite the positive effects of the coronavirus support, the subsidy system should be developed to tackle similar crises in future.
The report examines the effectiveness of business support measures introduced in Finland in response to the COVID-19 pandemic and provides recommendations for similar crises in future. The study is the final part of the Ministry’s series of studies on coronavirus support measures in 2020–2024. The other sections discussed the legality, allocation and direct impacts of the funding and the appropriateness of the support policy.
The data can be used later in similar crises affecting the liquidity of companies. The Ministry will gather the lessons learned from the studies on business support.
The model on support for business costs developed now and the research results obtained from it can be utilised later. On the legislative side, a section has been added to the Act on Discretionary Government Transfers to Develop Business Operations in 2021–2028, under which a decree on crisis support can be issued quickly. Data analysis functions have also been improved.
Inquiries:
Anne Rothovius, Chief Specialist, Ministry of Economic Affairs and Employment, tel. +358 295 063 532