Chamber and Eurochambres survey: Estonian entrepreneurs' expectations are improving, but confidence has not yet recovered

According to the latest economic survey by Eurochambres, the association of European chambers of commerce and industry, and the Estonian Chamber of Commerce and Industry, Estonian entrepreneurs have more positive expectations for 2027 than they did a year ago. Growth opportunities are seen particularly in exports and the domestic market, and investment expectations have also improved. Nevertheless, overall business confidence remains fragile, and high labour costs are regarded as the biggest concern for the seventh consecutive year.

Estonian entrepreneurs' expectations for domestic sales and exports have improved
The survey shows that 36.9% of Estonian entrepreneurs expect domestic sales to increase in 2027. In last year's survey, 30.6% of respondents forecast growth in domestic sales. Half of entrepreneurs believe that sales will remain at their current level, while 13.1% forecast a decline.

An even greater change has occurred in export expectations. While last year 26.9% of respondents forecast export growth, 37.6% of entrepreneurs now expect export revenue to increase in 2027. Nearly half of respondents, or 48%, believe exports will remain at the same level, while 14.4% forecast a decline.

Entrepreneurs are more optimistic about investment but cautious about increasing staff numbers
An increase in investment is forecast by 27.7% of entrepreneurs, compared with 25.5% a year earlier. More than half of respondents, or 52.3%, plan to maintain investment at its current level, while 20% expect it to decrease.

Major changes in staff numbers are not expected. According to the survey, 62.3% of entrepreneurs expect their number of employees to remain unchanged. An increase in staff numbers is expected by 23.1% of respondents and a decrease by 14.6%. The share of the latter has risen from 10.9% to 14.6% over the year.

Entrepreneurs' confidence has improved, but uncertainty has not disappeared
Estonian entrepreneurs' assessments of the general economic environment in 2027 and the outlook for their own companies are more positive than a year ago. Favourable developments are expected by 30.8% of respondents. In last year's survey, the figure was 21.1%.

At the same time, 33.8% of entrepreneurs expect unfavourable developments for their own companies, while 35.4% believe the situation will remain similar to the current one. Thus, although the share of entrepreneurs with positive expectations has increased, there are still slightly more respondents forecasting negative developments.

Compared with neighbouring countries, Estonian entrepreneurs' assessments are also more cautious. Favourable developments are expected by 36.5% of respondents in Latvia, 35.7% in Lithuania and 44.5% in Finland.

Labour costs have been Estonian entrepreneurs' greatest concern for the seventh consecutive year
Estonian entrepreneurs regard labour costs as their greatest challenge, cited by 76% of respondents. High energy and raw material prices are seen as the second major problem. Entrepreneurs are also concerned about the shortage of skilled labour and the administrative burden.

European companies expect sales growth, but overall confidence is weakening
The results of the Eurochambres survey show that, as in Estonia, a recovery in domestic markets and exports is expected across Europe. Expectations for both indicators have turned positive for next year and are slightly above their average levels over the past ten years.

At the same time, European entrepreneurs' expectations regarding staff numbers have been negative for the fourth consecutive year. High labour costs, a shortage of skilled workers and economic uncertainty limit opportunities to recruit new employees.

Investment expectations in Europe have also improved somewhat compared with the previous two years but remain below the long-term average. Companies are cautious when making investment decisions and are focusing, among other things, on improving productivity, digitalisation and making their existing operations more efficient.

Unlike in Estonia, where overall confidence has improved, European entrepreneurs as a whole expect a slight weakening of confidence in 2027. According to Eurochambres, this is because improved sales expectations have not yet dispelled concerns about the long-term development of the economy and the business environment.

Energy prices have become Europe's biggest challenge
While labour costs are the main concern for entrepreneurs in Estonia, high energy and raw material prices have become the biggest challenge across Europe, overtaking labour costs.

According to European entrepreneurs, the administrative burden is the second-biggest problem and labour costs rank third. The shortage of skilled labour is regarded as the fourth main challenge.

Eurochambres emphasises that improving Europe's competitiveness requires reducing companies' energy costs, simplifying regulations and reducing the administrative burden. It is also necessary to support the development of employees' skills and improve companies' access to finance and new technologies.

About the survey
The Eurochambres Economic Survey 2027 was conducted for the 34th time. A total of 40,717 entrepreneurs from 27 European countries responded, the vast majority representing small and medium-sized enterprises.

Entrepreneurs were asked about their expectations for 2027 concerning domestic sales, exports, staff numbers, investment and overall confidence. They were also asked to identify up to three of the biggest challenges affecting their business activities.

The Estonian part of the survey was conducted by the Estonian Chamber of Commerce and Industry. The European results and country comparisons are available on the Eurochambres website.