{"id":26770,"date":"2026-11-09T12:37:07","date_gmt":"2026-11-09T10:37:07","guid":{"rendered":"https:\/\/trialoog.taltech.ee\/?p=26770"},"modified":"2026-11-10T21:09:00","modified_gmt":"2026-11-10T19:09:00","slug":"estonias-entrepreneurship-paradox-who-turns-ideas-into-businesses","status":"publish","type":"post","link":"https:\/\/trialoog.taltech.ee\/en\/estonias-entrepreneurship-paradox-who-turns-ideas-into-businesses\/","title":{"rendered":"Estonia\u2019s entrepreneurship paradox: who turns ideas into businesses?"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"

Estonia has plenty of good business ideas, researchers and technology, yet many promising projects never become companies. Sometimes a project loses its driving force; elsewhere, funding or the courage to take risks is lacking. At TalTech\u2019s Entrepreneurship Day, experts discussed why entrepreneurship in Estonia is losing momentum and what is needed for the next success stories to emerge and grow.<\/p>\n","protected":false},"author":8,"featured_media":26642,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[250],"tags":[921,551,547,473,920,925,442],"class_list":["post-26770","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-business-cooperation","tag-entrepreneurship","tag-ettevotlus-en","tag-iduettevotted-en","tag-research-cooperation","tag-start-ups","tag-teaduskoostoo-en"],"acf":{"postbuilder":[{"acf_fc_layout":"text","type":"text","text":"

The latest results of the Global Entrepreneurship Monitor (GEM)<\/a> show that entrepreneurial activity in Estonia has declined in recent years. Presenting the findings, panel moderator Sirje Ustav<\/a> highlighted young people\u2019s growing fear of business failure as a particularly worrying trend.<\/p>

Funding is shrinking, but the biggest challenge is people<\/strong><\/h4>

The discussion noted that start-ups face increasing difficulty in raising investment. Entrepreneur and investor Aleksander Gansen said direct investment by angel investors fell from \u20ac3.8 million in 2024 to \u20ac2.3 million last year. \u201cThe situation is bleak,\u201d he said.<\/p>

At the same time, a shortage of funding forces entrepreneurs to think their business models through more carefully. \u201cYou need to reach your customer as quickly as possible,\u201d Gansen stressed. Before making major expenditures, he said, founders should understand which problem their business solves and whether customers are willing to pay for the solution.<\/p>

Gansen also sees new opportunities in the changed funding environment. AI tools allow companies with one or two founders to perform tasks that previously required a larger team and considerable expenditure. This enables entrepreneurs to test ideas with less capital and reach the market faster.<\/p>

Sigrid Harjo, Head of Entrepreneurship Programmes at the University of Tartu, brought another perspective to the discussion: \u201cMoney alone does not deliver results.\u201d She believes the success of a company or a research-based business idea often depends on finding someone willing to take responsibility and lead the project consistently.<\/p>

Harjo cited the University of Tartu, which has supported almost a hundred experimental development projects in recent years. Among discontinued projects, 80% stopped because there was no one to keep them going. \u201cWe have researchers and ideas, but we need someone actively driving things forward,\u201d she said.<\/p>

Such projects could be led by a researcher, a doctoral candidate or a co-founder with business experience, Harjo said. Researchers may feel, however, that starting a business puts their career and reputation at risk, allowing fear of failure to hold back even the most promising ideas.<\/p>

\u201cThe situation is bleak.\u201d<\/p><\/blockquote>","image":null,"align":""},{"acf_fc_layout":"image","image":26644},{"acf_fc_layout":"text","type":"text","text":"

Estonia\u2019s small size calls for greater ambition<\/strong><\/h4>

Ergo Metsla, Head of TalTech\u2019s Alumni and Support Relations Office, believes entrepreneurial thinking must be developed at school and continued across every university discipline. \u201cIt is a question of mindset and ambition,\u201d he stressed. Given Estonia\u2019s small domestic market, future entrepreneurs should target foreign markets from the outset, while the value they create could remain in Estonia.<\/p>

Metsla believes the state should examine why Estonian companies move abroad. \u201cFor example, we should analyse why Skeleton Technologies moved its operations to Germany. What should we have offered them to persuade them to stay in Estonia?\u201d In his view, Estonia could do more to retain growing technology companies\u2019 manufacturing and investment.<\/p>

Kati Keel<\/a>, Head of the Economic Policy Department at the Ministry of Economic Affairs and Communications<\/a>, said Estonia must focus on raising productivity: \u201cOur next growth success story must come from the ability to do things smarter and create greater added value.\u201d<\/p>

To support this, the ministry plans to pilot a programme in 2027 that would bring universities, research institutions and start-ups together around large companies, helping new technologies reach the market faster.<\/p>

Keel said businesses also need conditions conducive to growth: \u201cIt must be easy for entrepreneurs to operate in Estonia, and the state must not get in their way without good reason.\u201d She identified the shortage of engineers and skilled workers as a major obstacle, requiring better specialist training and easier recruitment of necessary foreign specialists.<\/p>

Keel compared Estonia with Lithuania, whose economy has grown faster in recent years. She said Lithuania benefits from a larger domestic market and close links with Poland\u2019s economy, but also from its ability to attract foreign investment. \u201cThey do a very good job of selling themselves,\u201d she said in praise of Estonia\u2019s southern neighbour.<\/p>

\u201cOur next growth success story must come from the ability to do things smarter and create greater added value.\u201d<\/p><\/blockquote>","image":null,"align":""},{"acf_fc_layout":"image","image":26646},{"acf_fc_layout":"text","type":"text","text":"

AI\u2019s opportunities depend on businesses\u2019 readiness to change<\/strong><\/h4>

The discussion also considered AI\u2019s potential to strengthen Estonian companies\u2019 competitiveness. Sigrid Harjo highlighted an interesting contradiction: in the GEM study, Latvian experts rate their country\u2019s capacity to use AI more highly than Estonian experts do, even though Eurostat data show that almost a quarter of Estonian companies use AI, compared with just 12% in Latvia.<\/p>

Harjo suggested the difference may reflect Estonian entrepreneurs\u2019 more demanding assessment of their own achievements. She said AI\u2019s real potential will emerge when businesses also use it in production processes and reorganise their work accordingly.<\/p>

Metsla said Estonia should set clearer goals for AI development. Given a small country\u2019s limited resources, it should focus on fields where the technology promises the greatest economic benefits. \u201cAI is not a magic bullet: it is a tool,\u201d he stressed.<\/p>

At the end, the discussion returned to enterprising people. The experts agreed that, alongside growing new companies, attention should be paid to established entrepreneurs, who can always renew their products and business models.<\/p>

Harjo recalled a manufacturer of water treatment equipment in southern Estonia that discovered new product development opportunities through an innovation programme and became more ambitious as a result. This shows that people with extensive business experience can continue to develop too.<\/p>

Metsla drew attention to generational succession among entrepreneurs. He discussed Japan, where the departure of ageing owners can mean the loss not only of companies, but also valuable skills and technologies. He believes Estonia could anticipate this problem and help young entrepreneurs take over and develop existing businesses.<\/p>

One clear thread connected the problems discussed: Estonia\u2019s next success stories need capital, research, technology and a supportive business environment, but above all they need people who can spot opportunities and dare to make them happen.<\/p>

\u201cAI is not a magic bullet: it is a tool.\u201d<\/p><\/blockquote>","image":null,"align":""}],"related_authors":[{"author":7990,"position":"Trialoog editor"}]},"yoast_head":"\nEstonia\u2019s entrepreneurship paradox: who turns ideas into businesses? - Trialoog<\/title>\n<meta name=\"description\" content=\"Experts at TalTech\u2019s Entrepreneurship Day discuss funding, founders, ambition and how to turn Estonia\u2019s research and business ideas into successful companies.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/trialoog.taltech.ee\/en\/estonias-entrepreneurship-paradox-who-turns-ideas-into-businesses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Estonia\u2019s entrepreneurship paradox: who turns ideas into businesses? - Trialoog\" \/>\n<meta property=\"og:description\" content=\"Experts at TalTech\u2019s Entrepreneurship Day discuss funding, founders, ambition and how to turn Estonia\u2019s research and business ideas into successful companies.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/trialoog.taltech.ee\/en\/estonias-entrepreneurship-paradox-who-turns-ideas-into-businesses\/\" \/>\n<meta property=\"og:site_name\" content=\"Trialoog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/profile.php?id=61555592234506\" \/>\n<meta property=\"article:published_time\" content=\"2026-11-09T10:37:07+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-11-10T19:09:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/trialoog.taltech.ee\/wp-content\/uploads\/2026\/11\/1-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2560\" \/>\n\t<meta property=\"og:image:height\" content=\"1440\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Eveliis Vaaks\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Eveliis Vaaks\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/trialoog.taltech.ee\\\/en\\\/estonias-entrepreneurship-paradox-who-turns-ideas-into-businesses\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/trialoog.taltech.ee\\\/en\\\/estonias-entrepreneurship-paradox-who-turns-ideas-into-businesses\\\/\"},\"author\":{\"name\":\"Eveliis Vaaks\",\"@id\":\"https:\\\/\\\/trialoog.taltech.ee\\\/en\\\/#\\\/schema\\\/person\\\/298421563bc6fa08635ee92967fbee05\"},\"headline\":\"Estonia\u2019s entrepreneurship paradox: who turns ideas into businesses?\",\"datePublished\":\"2026-11-09T10:37:07+00:00\",\"dateModified\":\"2026-11-10T19:09:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/trialoog.taltech.ee\\\/en\\\/estonias-entrepreneurship-paradox-who-turns-ideas-into-businesses\\\/\"},\"wordCount\":9,\"publisher\":{\"@id\":\"https:\\\/\\\/trialoog.taltech.ee\\\/en\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/trialoog.taltech.ee\\\/en\\\/estonias-entrepreneurship-paradox-who-turns-ideas-into-businesses\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/trialoog.taltech.ee\\\/wp-content\\\/uploads\\\/2026\\\/11\\\/1-scaled.jpg\",\"keywords\":[\"business cooperation\",\"entrepreneurship\",\"ettev\u00f5tlus\",\"iduettev\u00f5tted\",\"research cooperation\",\"start-ups\",\"teaduskoost\u00f6\u00f6\"],\"articleSection\":[\"Business\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/trialoog.taltech.ee\\\/en\\\/estonias-entrepreneurship-paradox-who-turns-ideas-into-businesses\\\/\",\"url\":\"https:\\\/\\\/trialoog.taltech.ee\\\/en\\\/estonias-entrepreneurship-paradox-who-turns-ideas-into-businesses\\\/\",\"name\":\"Estonia\u2019s entrepreneurship paradox: who turns ideas into businesses? 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