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Seeds of growth for small enterprises in forestry and wood-processing industries; Kasvun evaeaet metsae- ja puualan pienyrityksille

Technical Report:

Abstract

The theme of the research and development programme focusing on small enterprises in the forestry and wood processing industries in 2007-2010 was growth. Subcontracting in the wood harvesting and wood transport sectors has increased. In the wood harvesting sector, the growth reflects the existing financial situation. In the wood transport sector, a turnover smaller or larger than EUR 1-1,5 million weakens profitability. A clear trend in these sectors is expansion into new industries. The share of forest service enterprises in various work categories is increasing. A significant share of the growth is born when forest owners associations outsource their own forestry service production. Moreover, forests owned by municipalities, parishes and collective forests are a potential target for forest service enterprises. The forest energy business is built on the foundation of a new kind of competence and immaterial factors of production based on networking. Joint enterprises by machinery entrepreneurs have enabled a light organisational structure, effective and flexible management of production chains and raw material procurement as well as the sufficiency of machinery capacity. This also creates scale benefits and ensures delivery reliability. Heating entrepreneurs were interested in expanding their business to the one-family house category provided there is sufficient heating  More>>
Authors:
Rieppo, K [1] 
  1. ed.
Publication Date:
Jul 01, 2010
Product Type:
Technical Report
Report Number:
TTS-JULK-406
Resource Relation:
Other Information: 17 refs. TTS tutkimus
Subject:
09 BIOMASS FUELS; WOOD PRODUCTS INDUSTRY; SMALL BUSINESSES; GROWTH; HARVESTING; TRANSPORT; HEATING; WOOD FUELS; RESEARCH PROGRAMS
OSTI ID:
1007284
Research Organizations:
Work Efficiency Inst., Rajamaeki (Finland)
Country of Origin:
Finland
Language:
Finnish
Other Identifying Numbers:
Other: ISBN 978-951-788-414-3; TRN: FI1103010
Availability:
Available from Work Efficiency Inst., P.O.Box 5, FI-05201 Rajamaeki, Finland
Submitting Site:
FI
Size:
76 p. pages
Announcement Date:
Mar 07, 2011

Technical Report:

Citation Formats

Rieppo, K. Seeds of growth for small enterprises in forestry and wood-processing industries; Kasvun evaeaet metsae- ja puualan pienyrityksille. Finland: N. p., 2010. Web.
Rieppo, K. Seeds of growth for small enterprises in forestry and wood-processing industries; Kasvun evaeaet metsae- ja puualan pienyrityksille. Finland.
Rieppo, K. 2010. "Seeds of growth for small enterprises in forestry and wood-processing industries; Kasvun evaeaet metsae- ja puualan pienyrityksille." Finland.
@misc{etde_1007284,
title = {Seeds of growth for small enterprises in forestry and wood-processing industries; Kasvun evaeaet metsae- ja puualan pienyrityksille}
author = {Rieppo, K}
abstractNote = {The theme of the research and development programme focusing on small enterprises in the forestry and wood processing industries in 2007-2010 was growth. Subcontracting in the wood harvesting and wood transport sectors has increased. In the wood harvesting sector, the growth reflects the existing financial situation. In the wood transport sector, a turnover smaller or larger than EUR 1-1,5 million weakens profitability. A clear trend in these sectors is expansion into new industries. The share of forest service enterprises in various work categories is increasing. A significant share of the growth is born when forest owners associations outsource their own forestry service production. Moreover, forests owned by municipalities, parishes and collective forests are a potential target for forest service enterprises. The forest energy business is built on the foundation of a new kind of competence and immaterial factors of production based on networking. Joint enterprises by machinery entrepreneurs have enabled a light organisational structure, effective and flexible management of production chains and raw material procurement as well as the sufficiency of machinery capacity. This also creates scale benefits and ensures delivery reliability. Heating entrepreneurs were interested in expanding their business to the one-family house category provided there is sufficient heating capacity. Among one-family house dwellers interest in district heating provided by a heating entrepreneur was significant. The small sawmill sector aimed to grow in moderation. The most important business objective for small sawmills was the improvement of profitability and a return on capital. Next in importance were satisfied customers and the reasonable livelihood of the owner. There are very few enterprises with actual growth orientation in the forestry and wood-producing industries. Development of entrepreneurship and business activities is important. In addition to entrepreneurs' enthusiasm, this requires that the government introduces development measures promoting growth. (orig.)}
place = {Finland}
year = {2010}
month = {Jul}
}