Business Iceland
Business Iceland
8. March 2021

Positive outlook for Icelandic growth companies

Positive outlook for Icelandic growth companies
Icelandic companies working in innovation and technology are positioning for growth over the next 12 months.

The results of a new survey by Business Iceland (Íslandsstofa) are in, and there is a good reason for optimism for companies in innovation, ingenuity, and technology. Export figures for 2020 show that the proportion of export earnings in innovation and technology has shifted dramatically from 7% to 15%. The growth reflects the strength of the second sector of Business Iceland's Key Icelandic exports and objectives strategy.


Findings of the survey in which 110 Icelandic growth companies in the field of innovation and technology participated concluded the following:


• Most companies are predicting growth over the next 12 months.

• Majority of companies intend to hire more employees during the year.

• Despite COVID-19, the majority of respondents met their plans.

• In general, the number of customers has not decreased.

• Slight drop in income between 2019 and 2020, but at the same time, the number of employees has increased by 14%.

• 67% of the companies have working capital based on continuing operations for the next twelve months.

• In total, companies intend to apply for an investment of ISK 24 billion (EUR 157 million / USD 188.4 million) over the next twelve months.

• The companies increased hires on average 14% last year. This growth will be much faster if the companies secure planned financing.

• Five-year forecast: the number of jobs in the field will have reached around 3,500, based on continued 14% growth per year.

• If the companies' growth is 20% per year, the number of jobs will be almost 5,000 by 2026. Approximately 1,570 people work for the companies that took part in the survey.

• The companies' primary customers are in the United States, the Nordic countries, Germany, and France. Business Iceland designates these as key markets in its export policy.

• Only 6% of companies are financed through the banking system.

• Tremendous potential for growth in these sectors for the Icelandic economy.


About the survey:


The survey aimed to assess the situation and prospects of growth companies during unprecedented and challenging times. The survey of companies took place between 4 December to 14 January. Business Iceland contacted representatives of 199 growth companies by e-mail and requested that they answer the survey question via an online portal. A total of 110 companies responded to the survey.


Business Iceland defines growth companies as a company that has already done business abroad or has secured financing to enter foreign markets.


For further information, please contact:

Jarþrúður Ásmundsdóttir, Director of Innovation, Innovation and Technology at Íslandsstofa, jarthrudur@islandsstofa.is