Based in the findings from the report Business Financing in the Arctic made by the Danish ministry of Foreign Affairs. The AEC served as expert partner. The report provides a number of specific recommendations on how the Arctic States and institutions can improve innovation, entrepreneurship and business financing in the Arctic.
The prospects for business development are evolving and have been well documented in the Arctic. In the Arctic there are e.g. resources extending from minerals, forestry, and different energy sources. In addition to natural resources, the Arctic offers great opportunities within e.g. maritime transportation, infrastructure development including digital connectivity, and tourism. Despite the increasing economic development potential, the Arctic is often perceived as an area with low economic and business development potential as stated in the 2018 Arctic Business Analysis. Compared to other regions, the Arctic is densely populated and characterized by long distances between cities and communities. In addition, there is also a lack of risk capital.
The report Business financing in the Arctic has tried to identify the strengths and weaknesses regarding access to finance the individual regions and has for each Arctic country focused on the climate for enterprises. The key challenge that is highlighted for all Arctic regions is to gain access to private venture capital/and equity investments.
The report has identified when start-up companies seek to expand or scale up their business it is often not possible to attract private venture capital. It was stated by 56 percent of the respondents that access to venture capital is a problem to a large and very large extent.
Want to learn more about the climate for business in the Arctic regions? Please see the report http://um.dk/en/foreign-policy/the-arctic/business-financng-in-the-arctic