KASVA mid-term review: towards sustainable growth and regional vitality

KASVA - Sustainable growth for micro and small enterprises through regional cooperation between RDI actors and business services - is now at the half-way point. In January 2025, project actors held a "mid-term meeting" to present relevant studies and to take stock of achievements. The event provided valuable information on business growth, regional development and prospects. The key themes of the event were knowledge-based decision-making, anticipating vitality and supporting sustainable growth.
nainen puhumassa seminaarissa
Kuvassa Henna Väätäinen.

Henna Väätäinen, Project Manager of the Kerttu Saalasti Institute at the University of Oulu, who leads the KASVA project, says that KASVA is a network of networks, which focuses on the importance of cooperation in an ever-changing environment. Legislative and structural changes, such as the reform of social and health services and the service reform of TE services, have changed the role of municipalities more strongly towards the development of vitality. The role of business services is seen as essential in strengthening the vitality of municipalities.

The KASVA project has created and deepened networks of enterprises and business service providers and invested in the development of virtual cooperation. According to Henna Väätäinen, trust, clarity in joint action and regular contact are essential for the success of the network. "In the end, it's all about people and the fact that we genuinely want to help each other succeed in our work", Väätäinen says.

Oulu has traction, but there are also positive developments elsewhere in Northern Ostrobothnia

Ossi Kotavaara, Research Director of the Regional Excellence Research Group (REx) at the University of Oulu Kerttu Saalasti Institute, emphasised in his expert presentation that there are clear regional differences in the growth of companies and the development of business life in Northern Ostrobothnia. With the growth of the working-age population strongly concentrated in the Oulu region, some of the smaller centres in the province appear to be holding their own, but smaller municipalities seem to be facing a clear challenge in terms of population development. At the same time, in addition to the Oulu region, several municipalities in the southern part of Northern Ostrobothnia and Kuusamo, for example, stand out as strong areas for business growth. In Northern Ostrobothnia as a whole, there are many municipalities where business growth has been strong, but where the demographic outlook and projections are challenging in some cases.

The study by Niina Kotavaara, a project researcher in the REx research group, highlights the retention power of Northern Ostrobothnia from the perspective of university graduates. More than 60% of graduates in Northern Ostrobothnia stay in the region after graduation, making it the second most retained region in Finland after Uusimaa. Mobility is low in the long term - ten years after graduation, more than 80% of graduates who remained in the region were still living in Northern Ostrobothnia. Almost 80% of them still lived in the same sub-regional unit and almost 70% in the same municipality as one year after graduation. In contrast, international students are less and less likely to stay in the region after graduation. Niina Kotavaara stressed the need to connect students and employers already during their studies and to strengthen the opportunities for regional higher education to promote the availability of a highly qualified workforce outside the Oulu region.

Funding and gender gaps as challenges for entrepreneurship

Robert van der Have, Associate Professor of Microentrepreneurship at the University of Oulu, highlighted key challenges and opportunities for microenterprise growth. They include access to finance, digital transformation and gender differences in entrepreneurship. Traditional financing models often fail to meet the needs of micro-enterprises, but new opportunities are opening, for example through crowdfunding and digital banking. Technological developments such as artificial intelligence and e-commerce offer potential for micro-enterprises, but at the same time the digital divide is a particular challenge for women and rural entrepreneurs. According to Van der Haven, the future of entrepreneurship requires close cooperation, flexibility and the ability to exploit new technologies, as well as the promotion of sustainable and social entrepreneurship.

Observations from project managers and work package leaders on the past and the future

Tiina Pääkkö from the University of Oulu says that the project has been successful in terms of cooperation on many levels: between the whole project network, thematic working groups and external experts. Continuous dialogue has helped to identify common challenges and tackle them by learning together. The expertise of people from different backgrounds has become visible and common service concepts offer longer-term benefits for organisations.

Hanna Tölli and Sami Sarlin tell that Centria UAS has made extensive use of its expertise in bioeconomy, circular economy and innovation in the KASVA project. Successes have included Robo3DLab's FabLab status and the first prototype experiments carried out with companies. The project has also created concrete tools for companies to promote the circular economy. Work will continue with company-specific studies and innovation promotion, including the development of eco-industrial parks and green deal commitments for the circular economy. The well-attended Virtaveistämö event is an example of active involvement.

From the perspective of Pohjois-Pohjanmaan Yrittäjät, the first half of the project has focused on building cooperation and strengthening networks. According to Minna Paakkola, concrete cooperation has been implemented through workshops and events focusing on topics such as board work, internationalisation and the conditions for sustainable growth. This cooperation has led to efficient use of resources and increased regional understanding. Although there is a slightly wistful mood halfway through the project, it is hoped that the cooperation will continue in the future.

Pasi Anttila from the Haapavesi-Siikalatva Region says that the project has successfully mobilised companies to get involved and helped them find concrete solutions for growth. The business developers in the sub-region have networked effectively and have been able to develop and intensify cooperation in a targeted manner. This has also strengthened the conditions for business growth in the region.

Naturpolis Ltd has made rapid progress and brought new thinking to the region in terms of business development. According to Mirva Grann, growth groups and business innovation in particular have brought new ways of working to the region. An innovative Business Kuusamo environment, "Finland's easternmost Fab Lab", has been established in Kuusamo through project cooperation, inspiring entrepreneurs to develop their business in a new way. During the project, entrepreneurs' thinking about the future has been strengthened, and they have particularly appreciated the networking and joint discussions. The atmosphere around the project has been inspiring and encouraging.

In Utajärvi, the KASVA project has strengthened networking with local entrepreneurs and municipalities. According to Miia Oja of Utajärvi Business Park Ltd, the needs of businesses have been systematically mapped, which has guided the development of events and new cooperation models. In addition, the network of entrepreneurs in the Oulujokilaakso region has been activated. The project has encouraged experimentation with new models that will support regional prosperity and business growth in the future.

One of Liminka municipality's objectives has been to develop a circular economy-focused Ekokortteli industrial area. Mirja Väänänen says that the project has enabled progress on several fronts. In addition, the project has activated companies from other sectors to network and participate in joint workshops. Local actors have also been able to take advantage of Centria's RDI services. The measures support the vitality of the region, the development and growth of businesses.

KASVA - Sustainable growth in SMEs through regional collaboration of research, innovation, and business development services -project is a group project of low-threshold business service providers, entrepreneurs, researchers and innovators from different parts of Northern Ostrobothnia, whose main objective is to promote sustainable growth, renewal and development of enterprises in the region, the ability to change and the living and holding power of the regions. The project is co-funded by the EU and the main promoter is the University of Oulu. The other implementers are Centria University of Applied Sciences, Haapavesi-Siikalatva Region, Naturpolis Ltd, Liminka municipality, Nivala-Haapajärvi Region NIHAK ry, Pohjois-Pohjanmaan Yrittäjät and Utajärvi Yrityspuisto Ltd, each of which is leading its own sub-project.


Text: Minna Kilpeläinen, M.ED, M.Sc., communication specialist, University of Oulu Kerttu Saalasti Institute, and the project actors
Photo: Minna Kilpeläinen