Think new ways for export
Export is essential for large parts of Bornholm's business community. There are therefore good reasons both to think in new directions and to find new ways when trade is to be expanded from the island.
Exports are an absolute and vital element for many businesses on Bornholm. However, export should not only be understood as sales to the large global market. When it comes to Bornholm, export should be defined in a broader perspective. That is explained by Henrik Kofoed from the Bornholm Business Foundation.
”There is, of course, the export of goods and services abroad, but also to the rest of Denmark. In addition, the tourism sector is an important part of exports, where the work of marketing the island and attracting visitors is crucial because the customer base comes from outside. When tourists spend their money here on the island, it creates growth, and the services required to facilitate a strong tourism sector are closely linked to looking beyond the edge of the island, he says.
”In addition, subcontractors that supply Bornholm's large companies selling abroad must also be considered an important part of the export perspective.”
Nuanced export
Bornholm Business Fund supports Bornholm-based businesses either by lending money to companies looking to pursue exports or through equity investments. Viewed from that perspective, an exciting picture of exports on Bornholm is currently emerging, explains Henrik Kofoed.
”We are seeing a very diverse export from tourism-related projects to AI and green agriculture. There are many exciting things going on. We typically have 15 to 25 loan or capital contribution cases a year. We are currently at the lower end in terms of numbers, but have a historically high volume of lending due to the size of the loans. Small entrepreneurs are very welcome with us, but we are not seeing very many of them at the moment.”
There could be several reasons for that, he says.
”It may be due to inflation, but also general uncertainty in the world. It could also be an increase in interest rates, and then the typical challenge here on Bornholm, namely the difficulties in obtaining the relevant labour. And enough of it.”
However, Henrik Kofoed emphasises that the door is open.
”We still have money available to lend out, so you are welcome to drop by. It could be for the green transition, a generational handover in a family business, or exciting new plans. Please do drop by, as long as it is for purposes that go hand in hand with the foundation's work. These must be projects that promote jobs here on the island through sales outside the island. This is to be understood broadly, which is why it is also important for me to say that export should not be understood as rigidly as it often is.”
Look over the barrier
A commercial foundation like Bornholms Erhvervsfond is a rarity in Denmark. As far as is known, there is only one similar foundation in Southern Jutland, but when it comes to export, it can partly be good with a financial backing, but also a mental boost. If, as a business owner, you dream of sales outside Bornholm's rocky edges, you must consider the challenges that may arise precisely with your own export.
Jørn Pedersen, a business consultant at Business Center Bornholm, explains more about that.
”There is the geographical barrier, and there is the mental barrier,” he says and elaborates:
”It is on a very general level, because there can be special issues for the individual company, but fundamentally you can divide it into those two categories.”
To gain an overview of any potential barriers, one must look at Bornholm's exports in a broader perspective.
A wide range
Export, meaning sales to abroad and the rest of the country, covers a wide range of products from cheeses, interior design, beer and much more.
In addition, crafts and design inspiration from Bornholm also draw international attention, which strengthens the island's economy and visibility globally.
But one thing is being a business with a solid and stable network in the global market – another is being a start-up or moving from a locally focused approach to selling internationally.
How do you tackle that process, and what challenges might there be for Bornholm-based companies in terms of getting a successful and sustainable export going?
”The geographical barrier is quite clear. There can be challenges with freight capacity, and wind and weather can affect ferry departures, or the distance from Bornholm to the customer can be more costly in terms of freight than from other parts of the country. That is a competitive condition that plays a part, and one that you have to manage if you want to establish exports,” says Jørn Pedersen.
Geography and distances are quite tangible. Another barrier is the one we have in our heads, so to speak.
Bornholm is often referred to as being distant from the rest of Denmark. This is clearly reflected in the common saying ’you have to go over’ – there is a sea between the island and the rest of the country and the world in general.
”The mental barrier lies, amongst other things, in having the courage to think further than the island's edge. The internet has been invented, the world has become smaller, there are sensible freight and cargo solutions for Bornholm, and products can be delivered quickly. So one should not view oneself as isolated and at a distance because of the sea, but one ought to do one's groundwork well and have a clear idea of one's market, where it is, and how one can get export going there.”
Henrik Kofoed from Bornholms Erhvervsfond and Jørn Pedersen, business consultant at Business Center Bornholm.
Look to the Netherlands
That very element is crucial, according to Thomas Hagerup, who is a project consultant for the Business Programme and Transition Fund at Erhvervshus Hovedstaden.
Times change, or they should do at any rate, he explains.
”Typically, as a Danish company – and this applies not only to those on Bornholm, but also to ambitious businesses in the capital region – one will look to Germany as the most obvious market. There is a huge population, it’s a major economy, and ever since history lessons in primary school we’ve heard about how much Germany matters to the Danish economy. However, one can quickly become dazzled by Germany’s size, he says.
But one doesn't only have to look towards the big neighbour to the south, explains Thomas Hagerup.
”There is, of course, the rest of the Nordic region as an obvious home market, where one has the advantage of cultural similarities, and the language is easy to understand. But beyond that, I would also encourage looking towards the Netherlands. Denmark and the Netherlands are close geographically, but also culturally – more so than the Germans are. The countries are actually the same size measured in square kilometres, but the Netherlands has three times as many inhabitants as Denmark,” he says and emphasises:
”The Netherlands is therefore of interest to Danish companies, which we are also seeing right now, because it is a country that is easy to reach and work in, and which has great market potential.”
This advice applies not least to businesses on Bornholm, he says.
”One must remember that Bornholm in itself constitutes a strong brand. Many associate the island with good holiday memories, beautiful scenery and exciting experiences. Among other things, due to the successful coverage and exposure that the island receives in major global media. The Bornholm brand is quite simply positively charged from the outset, which Bornholm-based businesses must exploit offensively to forge new paths out of the island, says Thomas Hagerup.
BY SØREN SORGENFRI
BCB, Erhvervshus Hovedstaden and Bornholms Erhvervsfond can be found in the same building
Business Centre Bornholm delivers the basic, local business service to entrepreneurs and companies on Bornholm on behalf of Bornholm Regional Municipality.
Business Hub Greater Copenhagen provides specialised guidance to businesses and possesses highly specialised competencies, which they make available free of charge to businesses on Bornholm.
Bornholm Business Foundation provides support in the form of loans to new or existing commercial enterprises on Bornholm, which are considered capable of strengthening the business and demographic development on the island. Bornholm's Business Foundation can provide loans for investment in fixed assets in connection with the establishment of a new business, the expansion of an existing business, changes to production processes, as well as for ownership succession.
They are based at Landemærket 26 in Rønne.