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Municipality business-friendliness hits record high

The Danish business community’s satisfaction with the business climate offered by the municipalities is on the rise. In this year’s Local Business Climate survey, the municipalities achieved a record score overall.
According to this year’s Local Business Climate survey, the Danish municipalities have never been more business-friendly. For the fourth year running, the Municipality of Ikast-Brande grabbed the top spot.

Publiceret: 08.09.2016
Af Niels Brandt Petersen mail

Satisfaction with the business environment offered by the Danish municipalities has reached a new peak.

In this year’s Local Business Climate survey conducted by the Confederation of Danish Industry, 60% of businesses responded that they were satisfied with the business climate in the municipality in which they are based.

This is the highest level of satisfaction seen in the seven years that the Confederation of Danish Industry has evaluated the business environment in the Danish municipalities. It is also the second year running that has shown a significant increase after levels in 2014 fell to below 50%.

“This year’s survey was a pat on the back for the municipalities. Businesses have never been happier with their local business climate. We are seeing that by and large all the municipalities are doing more and more to provide businesses with a better service and offer a commercial environment that is as helpful as possible,” says Karsten Dybvad, director general of the Confederation of Danish Industry.

This year, only one in every ten businesses is dissatisfied or very dissatisfied with the business climate in their municipality. The number of municipalities whose businesses were dissatisfied has been falling steadily since 2010 when one in every five businesses expressed a negative view of their local business environment.

Read more: Business-friendliness levels across Danish municipalities

Ikast-Brande retains the lead

The Municipality of Ikast-Brande has taken the top spot in the survey again this year. This is the sixth time and the fourth year running that the municipality has come in at no. 1.

According to Karsten Dybvad, this excellent record can be attributed to the local politicians and administration in Ikast-Brande who continuously focus on the business environment.

“This is first and foremost because the city council have for years unanimously worked to improve conditions for businesses across the municipality. Mayor Carsten Kissmeyer liaises closely with the business community, and businesses know that they will get a quick response and that issues will always be followed up. The municipal employees have the same attitude to the business community,” says Karsten Dybvad. 

Central Denmark Region is no. 1

The municipalities in the Central Denmark Region are strongly represented at the top of the Local Business Climate survey and score particularly highly on business-friendliness, access to qualified staff and municipal image.

The Municipality of Hedensted has this year jumped from no. 4 to no. 2 while the Municipality of Varde is this year’s high achiever at the top with its jump from no. 27 to no. 9. Sorø is the only municipality east of the Great Belt that has edged into the top 10.

Increase in both cities and towns

The increase in the number of businesses responding positively is especially large in municipalities that are located further from the major cities.

This year, the average score went above the national average for the first time. The most satisfied businesses are still located in the municipalities closest to the major Danish cities.

A slower increase in the number of businesses that have become more satisfied with the business environment on offer can be seen in the largest metropolitan municipalities. This satisfaction is, however, still at the highest level ever.

Karsten Dybvad emphasises that the increasing satisfaction with the business climate in the municipalities does not just benefit the municipalities, but Denmark as a whole.

“This benefits all of us. Municipalities experiencing growth and generating jobs have the money to spoil their inhabitants. There is money for new smartboards in schools, for repairing potholes in the roads and for giving children in nurseries better food. And satisfied inhabitants attract other groups that local businesses need and who pay tax in the municipality,” says Karsten Dybvad and continues: 

“At the Confederation of Danish Industry, we always say that when businesses win, the whole of Denmark wins. This may sound a bit high-flown. But seeing that more and more municipalities have realised that positive reinforcement is generated when businesses flourish is incredibly positive.” 
Local Business Climate 2016 – Top 10
(Figure in brackets indicates position in 2015)
1: Ikast-Brande (1)
2: Hedensted (4)
3: Skanderborg (3)
4: Herning (2)
5: Middelfart (10)
6: Odder (19)
7: Billund (8)
8: Vejen (6)
9: Varde (27)
This year’s survey was a pat on the back for the municipalities. Businesses have never been happier with their local business climate.
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PUBLISHED: 9/8/2016 LAST MODIFIED: 3/4/2017