Forestry-service entrepreneurship in Finland

The concept of forestry-service enterprise used in this joint study by the TTS-Institute and the Finnish Forest Research Institute (Metla) refers to enterprises and co-operatives (including forest workers operating as entrepreneurs) offering services in the fields of silviculture, basic improvement, planning and wood-harvesting sector. Companies practicing large-scale wood-conversion and traditional forestry-machine and road haulage contractors are not included in this approach. Contact information on the entrepreneurs was collected by turning to the leading wood suppliers, local forest management associations and different registers. A mail questionnaire was launched in the spring of 1998 addressed to 553 persons, and responses were obtained from 376 (68 %). Of these, 320 persons were forestry-service entrepreneurs meeting the definition applied in this study. It can be estimated that there is a total of 450 such entrepreneurs in the country. Those engaged in only a minor degree in providing forestry services are not included in the figure. Almost all forestry-service entrepreneurs provide timber felling as a service. Over half of them do planting, cleaning of young stands, tending of young stands, and forest haulage of timber. Forestry planning is done by nearly a quarter. With the focus of operations as calculated from the enterprise's turnover serving as the basis, it became apparent that the majority of entrepreneurship takes place in the form of logging. The means of transport is mostly an agricultural tractor. The average age of entrepreneurs is 41, but most of them have switched to entrepreneurship only recently. Nearly a third have college level education in forestry, 39 % have switched over from their previous occupation of forest worker. Most entrepreneurs are full-time, private practitioners. Their median turnover in 1997 was FIM 180 000. Nonindustrial private forest owners form the clientele for 82 % of the entrepreneurs, while local forest management associations are sources of employment for 68 % of the entrepreneurs. As to the average breakdown of the sources of their turnover, 31 % is earned from jobs done for local forest management associations, 31 % comes from local forest management associations, 27 % from forest owners, and 24 % from work done for large forest-industry companies. Co-operation with fellow entrepreneurs is common. Local forest management associations are the single most significant marketing channel for the majority of the entrepreneurs. (orig.)