Lithuania’s GDP year 2009 collapsed by 22.4%: Is there a market for start-ups?
There is always space for a new venture. With most of active capital looking outside of Lithuania and minister of finance claiming that local consumption will not lead out of financial crises, innovation and foreign trade is more important than ever.
Power, outsourcing, and exports
Meanwhile, Lithuania’s economy must brace for the shutdown of the Ignalina Nuclear Power plant – the source for cheap power. Power consumption optimisation, efficiency tune-ups and alternative power supplies (at company level) open themselves for ready entrepreneurs if they can supply anything cheaper than power from burning diesel at Lithuania’s power plant at Elektrėnai.
As global financial restrain paces out, more and more companies will release the strategic low-level R&D funds. Companies aiming to catch up with their more prudent competitors, or those seeking to gain an upper hand on their way out of the crisis, will invest in improving level of services / goods or introducing new production to the market. With an excess of educated specialists (I), attractive labor cost (II), a good record of reliability (III), and EU-compliancy (IV) – Lithuanian entrepreneurs have all the chances to present themselves for innovative development to the market.
Lithuanian entrepreneurs must truly grasp the craftsmanship of exports: with France’s and Germany’s GDP, making a u-turn (+0.1% vs. prior decline) 2009 Q3 there opens markets ready to consume services and goods from the rest of EU. Established goods and supply chains will not be enough to compete with the vast market, therefore Lithuanian entrepreneurs must truly bridge the gap of novelty – or choose to experience a slow climb-up to pre-crisis level.
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