How Will the Change Influence the Activities I was very happy to hear about the endeavors to encourage entrepreneurship in Finland. There has been talk about a new tax deduction that is directed towards entrepreneurs (e.g. sole traders and limited partnerships). I have made a data collection that enables an easy comparison between the benefits of limited liability company and sole trader in Finnish environment. While adding changes for year 2017, I took a look at the situation that the before mentioned change creates. The estimated difference in personal taxation appeared to be in line with some figures presented in public. I however have somewhat mixed thoughts regarding the overall image: the limited liability companies still pay the corporate tax and the share holders pay taxes from any dividend (or other investment income) they receive. Will the new arrangement become an incentive to keep a company small, will it heighten the step to internationalize, and will it increase the pressure on loans and government subsidies instead of share based funding? I think, one should bear in mind that different company forms are intended for different purposes; the change in taxation does not remove e.g. the differences in risk environment or funding possibilities. On the other hand, growth in Finnish markets has lately been largely based on domestic business: e.g. growth in subsidized markets or in markets the growth of which is due to outsourcing or purchasing activities of public sector. Some remarks have already been presented regarding the movements in stock market and the interest that investors have shown towards companies that are involved in areas of activity that have tight links to public money. Will this development be truly beneficial for the business environment in the long run, or will the consequence be rather twisted economic landscape that does not support the creation of economically sustainable solutions? At the same time cuts in unemployment benefits have been reported and there are stories about signs of inconsistencies. In my opinion, there is a big threat that the public sector endeavor to guide the activities of the unemployed is one of the biggest obstacles for economic growth in an environment where the level of skills and experience amongst the “guided ones” is high. Is a public sector representative (or a service purchased by public sector) a more likely source of prospects than another "free resource", a person, who has willingness to engage in the activity? I must say that I am once again overwhelmed. However, eagerly waiting for the beginning of next year. Johanna Sandman Published: 26.12.2016 15:29