‘’Growth companies are able to offer jobs. More than a half of new jobs are created in them’’, says Timo Onnela, Manager, EnterpriseHelsinki.

The markets are getting more and more international, and besides Finland, growth company knower’show may come from all parts of the world. Even now, entrepreneurs from St. Petersburg come here wishing to start a company in Helsinki and consequently employ Finns.

The staff at NewCo Factory has a lot of experience. They know how to sell, commercialize and productize as well as to ease the administrative burden of entrepreneurs. The project makes the authority part of a growth company lucid to the extent that an entrepreneur need not waste extra time to transact with authorities. 

‘’We are an assembly plant for growth companies. We make sure that all pieces are in their right place’’, says Timo Onnela.

Looking into HR departments

One of the missions of NewCo Factory is to unite skilled people and promote the creation of new growth companies. The project offers different networks and new opportunities in situations where a growth company has to make people redundant or lay them off.

‘’We make contact with the HR departments of companies and tell them about the services we can offer in their difficult situation. We try to bring people together and further develop business ideas resulting from these encounters”, says Timo Onnela.

Investments in growth company services return as tax revenue

Helsinki promotes entrepreneurship and growth companies to gain new jobs in the city and more investments in the region. Strengthening the life force of the region is our common goal. 

‘’Helsinki offers an excellent operation and growth environment for businesses of different sectors. Therefore, Helsinki is today the promised city for growth and start-up companies’’, says Director of Economic Development Marja-Leena Rinkineva. 

The innovative products, services and modes of operation created by growth companies have a great impact on the development of the industrial life in the whole region.

The premises of EnterpriseHelsinki’s NewCo Factory are located in the centre of Helsinki at Aleksanterinkatu 16–18.

The City of Helsinki units of central administration, comprising the Administration Centre, Personnel Centre and Economic and Planning Centre, will be combined into one unit named City Office. The reform will take effect on 1 January 2014.

The Mayor’s Office will comprise six divisions responsible for 

• economic development
• administration
• personnel affairs
• legal services
• financial affairs and planning
• information technology and communication.

The City Office will be a new City of Helsinki department that is subordinate to Helsinki City Board and functions as a planning, preparing and executive body for the City Council, City Board and the Mayors. Helsinki City Council unanimously approved the proposal for the reform in its meeting on 24 April.

Finance Director Tapio Korhonen, who currently heads the Economic and Planning Centre, will be transferred to head the Mayor’s Office. Mr Korhonen has given his consent to the transfer. The offices of division heads will be filled by direct transfer of the employees below.

• Economic Development Director: present Economic Development Director Marja-Leena Rinkineva
• Administration Director: Division Head Juha Summanen
• Personnel Director: Division Head Marja-Liisa Pohjaniemi
• Legal Services Director: present Legal Services Director Sami Sarvilinna
• Finance Director: Budget Director Tuula Saxholm.

The office of the head of the information technology and communication division will be declared open to be filled by a public employment application process. The merged three departments altogether employ about 550 persons.

The merger of the three central administration departments seeks to render the Helsinki City Group management and planning more efficient and less complicated. The City Council states that the current management of the City departments and the City Group companies and subsidiaries has been characterized by lack of coordination and overlapping activities.

The operations of the Administration Centre, Personnel Centre and Economic and Planning Centre will continue as normal to the end of 2013.

The City Council endorsed the strategy programme for the council term 2013–2016 in their meeting on 24.4.2013. The strategy programme brings forward the City’s central objectives and development focuses as well as the most important steps for the council term 2013-2016.

Go to www.hel.fi/palvelukartta. Choose the Address search tab. Write an address to browse the services in the area. You may choose area in meters or kilometers, from which the services are sought. The search results include, for example,

• recycling depots
• tennis courts
• schools
• health stations
• kindergartens
• Kela offices
• train stations.

The map shows the location of the premises, as well as their contact information and website. You may also search for public transport connections to the place.

Accessibility information easily

The accessibility information of municipal premises can be easily obtained from the upper right side of the map. The accessibility information is particularly useful when travelling by wheelchair, walker or with a pram.

The amount of data is continuously growing

The service map is continuously developed and it will soon include e.g. charging spots for electric cars. The designing of a mobile user interface has also begun. The service map works in Finnish, Swedish and English.

In 2013, the service map has already hosted 1.5 million searches.

PosiVire’s achievement is remarkable, because the average percentage of social enterprise employees who proceed to education, training or further employment is 38 in the Uusimaa province (the southernmost province of Finland where Helsinki is situated).

Paula Lampinen with a customer. Photo: Magi Viljanen

Helsinki City Board made the decision on the establishment of PosiVire in 2007, and a year later PosiVire was registered as a social in-house enterprise that employs people in weak job market situations who are either long-term unemployed or only partially capable of meeting workplace demands. PosiVire is owned by the City of Helsinki, the municipal alliance of the Hospital District of Helsinki and Uusimaa (HUS), and the real estate company Kiinteistö Oy Kaapelitalo.

According to the findings made at Laurea, 42 percent of those who had worked at PosiVire were employed elsewhere, 13 percent had moved on to education or training, and 45 percent were unemployed as they had been before they entered PosiVire.

The former PosiVire employees interviewed for the diploma project say that their confidence increased during their employment at PosiVire, their lifestyles became more regular, and they were encouraged to seek re-entry into the job market.

Social enterprises make a positive economic impact in society, because the increased employment thanks to their efforts helps to grow the overall tax revenue and reduce expenditure on social programmes.

Two Laurea diploma students interviewed 31 former PosiVire employees for the study. Before their employment at PosiVire, 18 had been long-term unemployed and 10 partially incapable to work. Two of the interviewees were immigrants.

PosiVire will hold an open house on Monday, 13 May from 14–18. Former Laurea students Jenni Ahonen and Sonja Rahikainen will present the findings of their diploma project in finnish at 14 and 15. Address: Korppaanmäentie 17 CL 6.

”The past year was more positive than the budget, but clearly weaker than the year 2011”, says Mayor Jussi Pajunen of the Financial Statements 2012 of the City of Helsinki.

The expense growth increased despite a strict financial control. The comparable expenses of the City grew about 4.8% in 2012. The expense growth almost doubled from 2011, when the growth was 2.5%.

”Investments are financed with internal financing and by selling property. During the last few years, the investments of the city have been on a high level due to, for example, the initiation of new project developments, public transport projects and real estate repair investments”, says Jussi Pajunen.

The financial statements of the City of Helsinki and the City of Helsinki Group

The financial statements of the City of Helsinki comprise the financial statements of the city and the financial statements of the City of Helsinki Group.

The profit and loss account The City of Helsinki financial statements for the year 2012 show a surplus of EUR 139 million. The combined surplus for the public utilities was EUR 182 million. The deficit for the operations of the city excluding public utilities was EUR -43 million.

The financial statements of the City of Helsinki Group for the year 2012 show a surplus of EUR 138 million, which is almost the same as the surplus of the city.

The annual margin was EUR 439 million. The annual margin decreased from 2012 especially because the expenses increased notably faster than the tax revenue. The 2012 annual margin covers the depreciations. The annual margin covered 68.1% of the investments.

Tax revenue

The tax revenue was only 0.7% better than the realised tax revenue in 2011. The accrual of municipal tax was EUR 2 306 million with a tax rate of 18.5%. The municipal tax revenue increased 4% from 2011. The revenue accrued by corporation tax amounted to EUR 263 million. The corporation tax revenue decreased 21.3% when compared to 2011. The main reason behind this was the diminution in the municipality group share of the corporation tax, from 31.99% in 2011 to 28.34% in 2012. The revenue accrued by real estate tax amounted to EUR 189 million. The growth compared to 2011 was 1.2%.

State subsidies

The state subsidies received by Helsinki were EUR 297 million including the tax revenue-based compensation calculations of state subsidies (EUR -285.8 million).

The liquidity of the city was EUR 143 million weaker than in 2011. The borrowing estimated in the budget was postponed for implementation in 2013. In 2012, the debt was amortised by EUR 77 million. The city’s financial assets at the end of the year equalled the cash expenses of 46 days.

The loans amounted to EUR 1 986 per capita. The loan portfolio was EUR 1 201 million at the end of 2012.
The grand total of the balance sheet was EUR 12 048 million, an increase of EUR 115 million when compared to 2011.

Services flexibly

One of the biggest reforms ever in the public sector was prepared during 2012, when the social and health services in Helsinki were remodelled. The goal for the Department of Social Services and Health Care, which started operations in the beginning of 2013, is to reduce inequalities in health and welfare, intensify the service production and lighten the administration. The Department of Early Education and Care strengthens the situation and contents of early education and care in the city.

Another significant reform dealt with the fortification of vocational education. Helsinki City College of Technology, Helsinki City College of Social and Health Care and Helsinki City College of Culinary Art, Fashion and Beauty were combined and are now known as Helsinki Vocational College (Stadin ammattiopisto).

Design and events characterized the year 2012

The World Design Capital Helsinki 2012 year strengthened Helsinki’s reputation as a design city. Helsinki garnered exceptional visibility in the international media and was, for example, chosen as the best place in the world to live in.

”The design year made Helsinki a more open and fun place”, Pajunen summarises.

The citizens embraced the Helsinki 200 Years as Capital jubilee year and the own events of the citizens of Helsinki characterized the city life. The City Council decided, as part of the festive year, on a EUR 10 million festive funding for the prevention of youth alienation.

Investments continued

Helsinki is currently building new residential areas on places vacated by harbour services and renovates an increasing number of schools, day nurseries, hospitals and other basic service buildings. The city’s investment level has thus risen significantly during the last few years. In 2012 the city made investments of about EUR 483 million, with almost the same amount in 2011.

The first residents moved into Kalasatama and Jätkäsaari. The park Saukonpaadenpuisto was completed and tram traffic was established in Jätkäsaari. The construction work of the Kalasatama Centre was initiated. The negotiated procedure concerning the centre quarters in Central Pasila was launched and discussions were held over the entire year. The first light art work of Kruunuvuorenranta, the district of light, was completed in October.

A total of 5 172 new apartments were completed in Helsinki as new constructions and alterations of use. Building projects for 4 258 new apartments were started during the financial year. Out of these projects, 2 564 are located on project development sites and 1 694 on complementary building sites.

Construction projects completed in 2012 were, for example, the Myllypuro main health station, the community house Kanava in Vuosaari, the service connections of the Finlandia Hall and day nursery Satakieli in Viikki. Renovations were completed in Herttoniemen ala-asteen koulu, Käpylän peruskoulu, Porolahden peruskoulu in Roihuvuori, Vartiokylän yläasteen koulu and Kannelmäen peruskoulu, day nursery Sakara in Kontula and day nursery Rööperi in Punavuori. The renovation of the Govinius House on Katariinankatu was completed as part of the development of the City Hall quarters.

Roadwork was done especially in new districts and, in addition to that, the new construction projects included the Aurora Bridge for pedestrian and bicycle traffic over Nordenskiöldinkatu and the new pedestrian and bicycle way Baana, which was built in the old harbour railway shaft. The park project Tapio Wirkkala Art Park was completed in Arabianranta.

As for sports, the completed projects included the artificial skating rink in Kontula sports park and the renovations of the Eläintarha sports field and the artificial skating rink in Oulunkylä sports park.

The city’s new data system for financial management was implemented from the beginning of 2012. The development of the electronic case management system (Ahjo) continued with improvements added to the usability of the system.

The City Board discusses the financial statements on Monday, March 25, 2013. The City Council approves the financial statements on June 19, 2013.

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Major Urban Projects (presentation)

City Leaders – Helsinki

Helsinki New Horizons

The Tall Ships Races are an annual international racing event for tall ships – large traditional sailing ships – held in the Baltic Sea every four years. Race One of the 2013 races will be held in Helsinki from 17–20 July.

The 2013 races will be joined by about 100 ships from all over the world, carrying about 2,500 young crew members. The Helsinki event is expected to be Finland’s largest public event in 2013 and attract half a million visitors.

Youth sailing event

The Tall Ships Races are managed by Sail Training International (STI), which is an international, non-profit organization. STI’s mission is the development and education of young people through the sail training experience, regardless of nationality, culture, religion, gender or social background.

The Helsinki segment of the Tall Ships Races 2013 is organized by the City of Helsinki Event Office. Helsinki focuses on three themes in the event: youth work, Baltic Sea protection and responsible events.

In addition to Helsinki, the Tall Ships Races 2013 are hosted by Aarhus of Denmark, Riga of Latvia and Szczecin of Poland. Helsinki last hosted the races in 2000, during Helsinki’s year as a European Cultural Capital.

EnterpriseHelsinki is a service centre for entrepreneurs in business, or who hope to enter business. The centre provides support, all the way from developing a business idea to finding the right contacts. The centre arranges free-of-charge information sessions, briefing participants on the core issues involved in starting a business.

Business advice for immigrants in the Greater Helsinki region is concentrated in EnterpriseHelsinki. For immigrants, information sessions on starting a business are held in English, Russian, Estonian and Arabic. Preparatory entrepreneur courses are also offered to immigrants starting a business.

EnterpriseHelsinki offers a range of services to growth companies, from free-of-charge personal advice to online networking channels.