How do business hubs at Estonian embassies benefit entrepreneurs?
Over the past year, the Ministry of Foreign Affairs has opened business hubs at several Estonian embassies with the aim of supporting our companies in entering new markets. These hubs are now operating in London, Paris, Riga, Washington, Seoul and Singapore, with Berlin and Copenhagen soon to follow.
According to Priit Kallakas, Head of Business Diplomacy at the Ministry of Foreign Affairs, securing export agreements requires travelling to foreign markets, building personal relationships and proving oneself as a trustworthy partner. “There’s a significant difference between inviting a potential partner to a hotel lobby or to a business hub at the embassy. The latter immediately signals that you are a respectable and reliable partner, while also conveying a complementary message about Estonia as a country that produces world-class technologies,” Kallakas said.
These are well-equipped spaces suitable for business meetings, product presentations and hosting events.
Kallakas emphasised that in addition to the premises, local market insight and networks are crucial. Our embassies employ economic diplomats and export and foreign investment advisers from the Estonian Business and Innovation Agency (EIS), who assist companies in finding contacts and offer guidance on other matters. “A business hub alone doesn’t guarantee increased exports, but if companies view it as a resource to be used strategically, it can be a valuable asset,” Kallakas said, encouraging businesses to reach out to the embassies.
A good example of an Estonian company making use of a business hub is CryptoSwift, which develops software for managing crypto transfers.
“Token2049, the world’s largest conference in our field, takes place in Singapore. To reach key clients, we organised a side event at the business hub during the conference,” explained Uve Poom, co-founder of the company.
He noted that it’s often difficult to arrange meetings with top industry players; however, offering them a chance to participate in a panel discussion, for instance, can elevate the relationship to a whole new level.
“The Estonian business hub is as futuristic as Singapore itself, making it an exceptionally cool venue in terms of branding. Even with a generous budget, it’s hard to find a space of similar quality in Singapore,” Poom said, advising other Estonian companies to consider setting their sights on Singapore, as it is a gateway to the entire Asia-Pacific region.
Siim Saliste, Vice President of Business Development at Estonian defence industry company Vegvisir, shared his experience of entering the US market. “It’s not easy to break into the US market. The embassy is our only door in,” said Saliste.
He explained that business in the US is very government-centric, and most clients in the defence sector operate in institutions that are inaccessible to ordinary people. “Thanks to consistent effort, Vegvisir has managed to take a step forward, and today we have a development client in North America with whom we’re co-developing a product tailored to their market,” Saliste said.
“It’s a tough and slow market, but definitely worth the wait. The business hubs at embassies are excellent entry points, but from there, you have to take the next steps yourself,” he concluded.
Among other things, the business hubs provide information about Estonia’s business environment, technologies developed by our companies, e-government solutions and cybersecurity, and promote Estonia as an investment destination. Regular business seminars and events are also held, offering Estonian companies opportunities to establish new contacts.
The establishment of the business hubs was funded by the European Union’s Recovery and Resilience Facility “NextGenerationEU”.
Contacts and further information about the Estonian Business Hubs: www.vm.ee/ebh
