Reduce risks, increase profit for small businesses in Finland : dance studio in Helsinki case

Abstract

This study focuses on how small businesses in Finland can manage risks and profitability with reference to a dance studio located in Helsinki. The purpose of this research is to formulate effective plans for managing potential risks and improving financial performance during the crucial startup phases of the business. The study investigates two central questions: what strategies help reduce business risks, and how small businesses can increase profitability. The study uses a qualitative research design based on semi-structured interviews and case study approach. Interviews were conducted with the owner of a dance studio and a small import business in Helsinki. The theoretical framework draws upon concepts of risk management (Verbano & Venturini, 2013), profitability of small businesses (Brännback & Carsrud, 2016), and bootstrapping theory of financing (Winborg & Landström, 2001). The results underscore the importance of operational and financial flexibility, careful cost control, proactive social media marketing, and community relations for the success of small firms. Major risks were found to include inflation, heavy taxation, and high rental costs. The findings support the claim that small business sustainability is highly dependent on precise financial planning, flexibility, and control over the business.

Still, the research is forced due to a small sample size and specific demographic parameters which limits how widely the findings can be applied. Additional work that takes a wider range of firms and geographic areas is recommended. In any case, the research helps entrepreneurs understand the problems and complexities of small business management within Finland’s ever-evolving economy.