Entrepreneurship house shows the way to growth

Entrepreneurship house shows the way to growth

Food Bornholm

The former entrepreneur hub, which was previously threatened with closure, is today buzzing with life with just over 20 companies and more than 50 citizens who have their daily workplace here. All 550 square metres are in use, says director Carsten Aalling.

The furniture factory in Nexø is a real success story. Once, the business incubator was threatened with closure. Now, every square metre is utilised. Yet new initiatives are still popping up in the creative growth house.

Back in 2018, Møbelfabrikken in Nexø was close to going bankrupt. Today, according to the director Carsten Aalling, Bornholms Iværksætterhus Møbelfabrikken has gradually become a mini-society where, in principle, one could spend one's entire life – from the cradle to the grave.

– He says humorously: If we had a midwife in our health centre, which we've built up over the last few years, you could actually live your whole life at the Furniture Factory – be born, work, eat, sleep, exercise, party and die. We have it all. Even an undertaker who uses our function room for memorial gatherings. It gives a sense of what's actually going on in this place, he says.

Today, Carsten Aalling has ensured that every single one of the Furniture Factory's 5,500 square metres is in use.

– I think we have a little over 20 companies with more than 50 citizens who have their workplace here, says Carsten Aalling.

Joint effort

To put it mildly, that was not the case when he took over as general manager in 2018, when Møbelfabrikken was struggling with finances that did not add up, even though an attempt had been made to create a rescue plan for the place.

– My task was to turn an entrepreneurial hub threatened by bankruptcy and closure into something that could survive and create some jobs. We had two options – to close or become a success. So I poured every hour of the day into making it succeed, says the director, who slowly turned the place into a sustainable business.

– It wouldn't have succeeded without a fantastic board of directors as a sounding board and skilled employees who have gone all out, says Carsten Aalling, who streamlined Nexø Hostel and got it up to speed, just as he took on a lease at the harbour – Harbour Sleep – to generate extra revenue.

– Furthermore, we set to work – as one of the first things – on building and renovating Hall 2 using a large proportion of recycled materials, says the director.

He says that Hall 2 has today become a showroom for sustainable renovation on Bornholm, which is both used and rented out for conferences, exhibitions and functions.

He himself made a great effort to spread good stories about the Furniture Factory, which otherwise suffered from a poor reputation as ”a money-guzzling project”.

However, with help from Business Center Bornholm and Møbelfabrikken's dynamic board of directors, amongst others, he managed to get more tenants into the building, he explains, summarising the hectic process:

– We brought out the big signal sign and turned it up to 1000 watts to tell the people of Bornholm: We are here for you. We are here to serve Bornholm.

Simon Arvidsen

Director Carsten Aalling at his desk at The furniture factory. Photo: Møbelfabrikken

Clear vision

2019 was the last year the furniture factory received a subsidy from the municipality.

– Thereafter, the then mayor Winnie Grosbøll announced that we were now to fend for ourselves. The municipality wanted an entrepreneurial house that could provide the framework to help new businesses get started and retain entrepreneurs on the island. But the municipality would not support Møbelfabrikken financially after 2019. Since 2020, we have run Bornholm’s Entrepreneurial House without municipal support as an independent commercial foundation. We earn the money ourselves, and I am proud of that, says Carsten Aalling.

And the vision for Møbelfabrikken is still clear, according to the director.

– Our task is to create frameworks and facilities that help new Bornholm-based businesses get off to a good start. And we do that in various ways. Both through an introductory agreement for startups where finances are tight. Here, we find a solution regarding rent and offer backing and support in the form of mentoring and day-to-day assistance.

The furniture factory also supports entrepreneurs by renovating and building facilities that are in demand.

Among other things, we are pleased with our food production-approved premises; there is great demand for that kind of premises from food entrepreneurs.

A flourishing business

Sissel G. Thuesen Jensen, who owns the webshop Blomsterverden, which sells seeds, flower bulbs and garden supplies, has been a tenant at Møbelfabrikken on two occasions.

She arrived at the Furniture Factory as early as 2010, but spent a period somewhere else before moving her business back into the Furniture Factory in 2017, because Blomsterverden needed more space with the possibility of driving pallets in and out.

And this winter, the Furniture Factory has built her a new hall, so there is room for her thriving business. But she still remembers how run-down the building and premises were before there was a change in management and the board of directors in 2018.

Simon Arvidsen

Sissel G. Thuesen Jensen, who owns the webshop Flower world, happy to be a tenant in Møbelfabrikken.

– Carsten managed on a remarkable basis to turn the whole ship around. He began to clear up and renovate the place with what was available, just as he applied for funds to have Hall 2 renovated.

She also remembers that, with the help of the board of directors, he had the facade of the furniture factory painted, which was previously in four different colours.

– Now the facade is black, and it turned out really nice. Everything got a lift. And with that came an influx of tenants too. Now we have a building that is completely different, where there is a positive, inspiring feel, says the business owner, who has also seen a positive development in her own company since she came to the Furniture Factory.

– We have grown a lot since 2017. Today we send out approximately 90,000 parcels a year. And with the new warehouse we have two warehouses here, she says, adding that the future still looks bright for Blomsterverden.

– We are at a growth rate now that is exciting, so there are some good, exciting years ahead of us. Today we are in Denmark, Sweden, Finland and Germany. But we still have ambitions to grow and reach new markets.

Sissel G. Thuesen Jensen is also still pleased to be part of the burgeoning environment and community at Møbelfabrikken, where both new businesses and initiatives are emerging.

– We stand together for the place and want it to succeed and be a good place for everyone. And it is always exciting when some new entrepreneurs come in who do something completely different from what you yourself are dealing with, she says.

The director of Møbelfabrikken, Carsten Aalling, has also been busy with new initiatives:

– We have just furnished three new rooms, which will become part of Sundhedshuset Østbornholm, where new tenants are soon moving in. During the winter, we have also been fully engaged in the construction of the new hall system. And right now I am working on getting the storage hotel and Depotrum Bornholm up and running – yet another new business at the Furniture Factory, he says.

More storage space

With the newest initiative, the management of the furniture factory now has several business models which together secure the financial basis to support the creative entrepreneurial environment. They include, among other things, accommodation, rental of commercial premises, conferences, meetings, private functions – and most recently also storage rooms and warehouse space.

– It provides both financial sustainability and room for development, experiments and entrepreneurship, explains Carsten Aalling, who has no doubt about what his future focus at Møbelfabrikken will be:

– We have had eight years at a very high speed, where everything has been renovated and spruced up. Now there are no more square metres left to bring into use. Therefore, it is now about consolidating and specialising – and becoming clearer about the offers we can provide to entrepreneurs.

For it has been a race against both the finances and the 24 hours of the day to get this far, he acknowledges, adding:

– In 5-10 years, I see Møbelfabrikken as a strong business and entrepreneurial community, where experienced and new businesses work side by side and benefit from each other's knowledge and network.

The dream of a growth flywheel

According to Carsten Aalling, it is ultimately about creating sustainable and successful businesses. To ensure a stable economy, Møbelfabrikken cannot be run solely by brand new startups – there must also be established companies with secure earnings. However, all profit is channelled back into strengthening the entrepreneurial environment, he assures.

– I see the mission of the place as a power wheel consisting of three players, where Møbelfabrikken, as Bornholm's entrepreneurial house, creates the framework for Bornholm-based jobs; Business Center Bornholm already contributes with knowledge, competencies and guidance; and finally, the risk-tolerant capital, which is willing to support promising start-ups, he says, adding:

– Right now we have LAG here, but I could well wish for more close investor contacts. We are close to having the whole wheel in motion, but a bit is missing before it can truly roll. Among other things, I miss the dialogue with established business, stakeholders and organisations, as well as being part of being »top of mind« when growth strategies are being developed around Bornholm, says Carsten Aalling.

– The aim is for every square metre to be utilised for a purpose. All the time and all year round. That is my dream.

BY JOAN ØHRSTRØM