Estonia is known as a leader in the digital state and the creator of progressive solutions. We have Skype, Bolt, Wise and many other international successful companies. But if you take a closer look at our small business landscape, one important problem emerges. This problem is not lack of money, not poor infrastructure, nor insufficient education. The main obstacle is something else entirely — thinking too little.
What is a little thinking?
Small thinking means that the entrepreneur limits himself to too narrow limits in his plans and goals. He thinks only of the local market. He is afraid to grow. He does not dare to dream big. He is content with a small one, although the possibilities are much greater.
For example, a small entrepreneur might think like this: “I do my job well here in Tartu. Why should I go anywhere else?” Or: “I have five employees, and that's enough. I don't want to worry any more.” This mindset holds the company back and limits its development.
Thinking small does not mean that the entrepreneur is stupid or lazy. On the contrary, many small-minded entrepreneurs are very good and hardworking people. The problem is that they do not see their true potential. They don't think they can achieve anything greater.
The current situation of small business in Estonia
Let's look at the numbers first. According to the Estonian Statistical Office, small businesses make up a large part of our economy. A small business is considered to be a company employing between 10 and 49 people and having an annual turnover of between 500,000 and 10 million euros.
The Global Entrepreneurship Monitoring (GEM) survey in 2023 reveals interesting trends. Early-stage entrepreneurial activity in Estonia is 13.1 percent. This means that 13.1 percent of adults are actively involved in starting a new business or run a business that has been in business for less than 3.5 years.
But here comes an interesting problem. Although we have many new companies, their growth ambitions are often small. Only 17.2 percent of early-stage entrepreneurs plan to quickly increase the number of employees. This is a remarkably low number compared to our potential.
Fear of failure
One of the big reasons for thinking little is the fear of failure. Data from the GEM survey show that 49.8 percent of Estonians fear failure so much that it prevents them from starting a business. That's almost half the population!
Compared to other Baltic countries, this figure is high. In Lithuania, the fear of failure is only 38.4 percent, and in Latvia 41.8 percent. The European average is 49.1 per cent, so we are close to the average, but that does not mean that the situation is good.
Why are we so afraid? One reason is our culture. In Estonian society, failure has not always been accepted as part of learning. If someone fails, it is often remembered for a long time. People talk about it. This creates pressure and fear.
But let's see how things are in other parts of the world. In the United States, failure is almost a matter of honor. It says, “Fail fast, fail often.” This means that failure is a normal part of learning and growing.
Well-known entrepreneurs like Steve Jobs, Elon Musk and Jeff Bezos have all failed many times before their great successes. But they didn't let fear stop them. They learned from their mistakes and tried again.
Limited ambitions and growth plans
Another big problem is limited ambition. Many small businesses in Estonia think only of the local market. They do not see opportunities outside Estonia, although our country is small and the internal market is limited.
The GEM survey shows that 56.3 percent of early-stage entrepreneurs are oriented towards internationalization. That's a good number — even the best in the Baltic states. But it also means that almost half of entrepreneurs do not think about the international market.
Why is this a problem? The population of Estonia is only 1.3 million. This is a very small market. If a company wants to truly grow and develop, it needs to look beyond. The market in the European Union is more than 450 million people. The world market is even bigger.
Let's look at an example. Let's say you have a small software company in Tallinn. You do good programs and you have some local clients. You earn enough to live. But if you only think about the Estonian market, then your growth potential is very limited.
But what if you start thinking globally? If you are looking for clients from Germany, Sweden, Finland or even America? Then a completely different world opens up. Your number of potential customers will grow thousands of times. Your chances will increase enormously.
Underestimation of resources
The third problem is that entrepreneurs do not see their real resources. They think they don't have enough money, time or skills to do something big. But in reality, they have more options than they think.
Estonia has an excellent digital infrastructure. We have fast internet everywhere. We have an e-country where everything can be done online. Starting a business takes only a few tens of minutes. Declaring taxes is easy. Accounting is digital.
We also have good support systems. There are incubators like Tehnopol and Startup Wise Guys. There are mentoring programs. There are opportunities to receive funding from both the state and the private sector. Enterprise Estonia offers a wide range of supports and advice.
GEM survey shows that 77.3 percent of Estonians think that starting a business in Estonia is easy. This is a very high number - in the global comparison we are in seventh place! This means that objectively we have good conditions.
But still, many entrepreneurs do not use these opportunities to the full. They stay out of their comfort zone. They are not actively looking for new opportunities. They don't take advantage of all the resources they have.
Comparison with other countries
Let's see how the other Baltic countries are doing. Business intentions in Lithuania are 24.4 percent — this is significantly higher than in Estonia (18.3 percent). In Latvia, the share of small businesses that plan to create six or more jobs over the next five years is 4.2 percent. In Estonia, this figure is only 2.1 percent.
What does it mean? This means that we think bigger in our neighbouring countries. Entrepreneurs have bigger ambitions. There you dare to take more risks and grow.
But why? One of the reasons may be cultural. In Lithuania and Latvia, the business culture is slightly different. Courage and ambition are more appreciated there. There it is easier to accept failure.
Another reason may be economic. Both countries have a larger domestic market than Estonia. The population of Lithuania is 2.8 million and Latvia's 1.9 million. This will give more opportunities to grow before it is necessary to go to the international market.
But this should not be an excuse. Estonia has other advantages. We have a better digital infrastructure. We have more international successful companies that can serve as role models. We have a better education system in many areas.
Successful examples from Estonia
Now let's look at some successful examples that show that big thinking works. These companies started small, but they had a big vision.
Bolts(formerly Taxify) started in 2013 in Tallinn. Founders Markus Villig and his team didn't just think about the Estonian market. They saw an opportunity to create a global service. Today Bolt operates in over 45 countries and is one of Europe's largest transport and food delivery platforms. The company is worth billions of euros.
Wise(formerly TransferWise) started in 2011. Founders Kristo Käärmann and Taavet Hinrikus saw the problem — international money transfers were expensive and slow. They were not just thinking about the Estonian market. They wanted to change the whole world money transfer system. Today, Wise is used by more than 10 million people around the world.
Pipedriveis a sales software company that started in 2010. The founders were not content with a small local software company. They saw an opportunity to create a tool used by sales teams around the world. Today, Pipedrive has over 100,000 customers in 179 countries.
What is the common feature of these companies? They all thought big from the beginning. They were not limited to the Estonian market. They saw global opportunities. They dared to dream big and worked to make their dreams come true.
How to change the mindset?
Now we come to the most important question: how can a small business change its mindset? How can you start thinking bigger?
First, acknowledge the existence of a problem.The first step is always to admit that you have a problem. If you don't see that your thinking is too small, you can't change it either. Be honest with yourself. Ask yourself, “Am I thinking big enough? Am I going to use all my options?”
Second, learn from successful people.Read books. Listen to podcasts. Watch videos. Learn from people who have already achieved what you want to achieve. For example, you can read the stories of Markus Villig or Kristo Käärmann. Look at how they thought and acted.
Third, look for mentors.A mentor is someone who has already gone through the path you are just beginning. A mentor can advise you, encourage you and help you avoid mistakes. There are many good mentoring programs in Estonia. For example, Startup Wise Guys and other incubators offer mentoring.
Fourth, focus on opportunities, not obstacles.If you only think about the problems, you don't see the possibilities. But if you focus on the possibilities, you will always find solutions. For example, if you think: “I do not have enough money”, then you do not move on. But if you think: “How can I find money?”, then you start looking for solutions.
Fifth, start with small steps.You do not need to immediately jump into deep water. Start with small steps. For example, if you want to go to the international market, then start from one country. Learn how to do business there. Then move on to the next.
Sixth, do not be afraid to fail.Failure is a normal part of learning. Every successful entrepreneur has failed many times. It is important to learn from your mistakes and try again. As the saying goes: “Failure is not the opposite of success, it is part of success.”
Seventh, surround yourself with the right people.The people you spend time with influence you. When you're surrounded by small-minded people, you start to think that way too. But when you're surrounded by people with big dreams and ambitions, you'll start to think bigger too.
Practical Steps to Thinking Bigger
Now let's look at some practical steps that any small business owner can take right away.
Write down your big vision.Take a paper and pen (or open a computer) and write down what your business could be like in five or ten years. Do not limit yourself. Dream big. What is your ideal company? How many employees are there? In which countries do you operate? How big is the turnover?
Do an international market study.See what opportunities are available outside of Estonia. Which countries might be interesting? Who could be your customers? What are their needs? There are many free resources on the internet to help you do this.
Participate in international events.Go to conferences, trade shows and networking events. Meet other entrepreneurs. Learn from their experiences. Create contacts. Many great business opportunities start with a simple conversation at some event.
Learn languages.English is essential these days. But if you know other languages, there are even more opportunities. For example, German, Swedish or Finnish can be very useful if you want to operate in these markets.
Use digital marketing.The Internet gives you the opportunity to reach customers all over the world. Create a good website. Use social media. Make Google Ads. Digital marketing is a cheap and effective way to reach international customers.
Search for international partners.You don't have to do everything alone. Look for partners in other countries who can help you. For example, you may find a local dealer or agent who knows the market better than you do.
The role of government and society
While much of the responsibility lies with the entrepreneurs themselves, the government and society in general also have an important role to play.
A survey by GEM experts shows that Estonia's business environment is good in many aspects. Our cultural and social norms support entrepreneurship at 78 percent — a very high number. Experts believe that Estonian entrepreneurship education is one of the best in the Baltic States.
But there are also areas where we can improve. For example, the government could give more support to the internationalization of companies. There could be more programs to help small businesses enter foreign markets. There could be more training and counselling.
Society could also be more accepting of failure. We should have a culture where failure is seen as an opportunity to learn, not as a shameful thing. We should have more stories of entrepreneurs who have failed, but then stood up again.
The media could provide more coverage of successful small businesses that have grown and internationalized. Not only big unicorns like Bolt and Wise, but also smaller companies that have done a good job and grown gradually.
Conclusions
The biggest obstacle for Estonian small businesses is not money, technology or education. The biggest obstacle is thinking too little. It is a mindset that limits us and holds us back from our true potential.
The numbers clearly show this. We have many new companies, but their growth ambitions are often small. We have a fear of failure. We have a limited vision of our capabilities.
But the good news is that the mindset can be changed. Every entrepreneur can learn to think bigger. Every entrepreneur can start to see more opportunities. Every entrepreneur can start dreaming bigger.
We live in an age where the possibilities are limitless. The internet has made the world small. Customers all over the world can be reached from Estonia. Our small country doesn't have to be an obstacle — it can be an advantage instead, because it forces us to think globally.
Let's look at Bolt, Wise and Pipedrive. These companies started in Estonia, but they were not limited to Estonia. They thought big from the beginning. They saw global opportunities. And today they are internationally successful companies.
The same opportunity exists for every small business in Estonia. No matter what field you do — whether it's software development, manufacturing, service, or anything else — you have the opportunity to grow and develop. You have the opportunity to go to the international market. You have the opportunity to create something great.
But it all starts with a mindset. It starts with the decision to start thinking bigger. It starts with the courage to dream big and work towards making your dreams come true.
Five key questions for yourself
Finally, here are five questions every small business owner should ask themselves:
- Am I thinking big enough?Be honest with yourself. Are your goals and plans ambitious enough? Or have you limited yourself to too narrow limits? Think for a moment and honestly assess your ambitions.
- What's stopping me?What are the things that hold you back? Is it fear? Is it a lack of resources? Or is it just a habit to think small? Identify specific obstacles and think about how to overcome them.
- What are my real chances?Take a fresh look at your business. What options do you actually have? What markets might be interesting? Who could be your customers? Do a thorough analysis and do not limit yourself to only what you already know.
- What can I do differently?What are the things you can change right now? What are the steps you can take today to start moving towards a greater vision? Start with small changes that will lead you in the right direction.
- What is my big vision?Dream big. What will your company be like in five or ten years? Do not limit yourself. Let your imagination fly. Write down that vision and look at it every day.
Estonian small businesses have huge potential. We have good conditions, a strong education system and an excellent digital infrastructure. We have successful role models that have shown that Estonia can create globally successful companies.
The only thing that stops us is our own way of thinking. But it can be changed. Every day is a new opportunity to start thinking bigger. Every day is a new opportunity to take a step closer to your big vision.
So the question is not whether you can. The question is whether you dare. Do you dare to dream big? Do you dare to step out of your comfort zone? Do you dare to think globally?
The answer is in your hands. Great thinking starts with you. And it starts today.
Estonia is a small country, but that doesn't mean our dreams have to be small. Our companies may be small in the beginning, but their potential is limitless. We have already shown the world that great things can come from a small Estonia. Bolt, Wise, Pipedrive and many others have proven this.
Now is the time for every small business in Estonia to start thinking the same way. Now is the time to forget about thinking small and start thinking big. This is the only way we can reach our full potential. Only in this way can we create companies that will change the world.
Your business could be the next big story. But it starts with the decision to think big. It starts with the courage to dream. And it starts from today.
Don't let small thinking get in your way. The world is waiting for your ideas, your products and your services. Estonia needs entrepreneurs who dare to think big and act boldly. Be one of them.