Gamzeyev: When Entrepreneurs Close Up Shop, Small Towns Fade Too
Estonian commentator Erik Gamzeyev argues that county centers are growing prettier, but their future depends on strong local business. He urges voters to press Riigikogu candidates for concrete plans.
Estonia's county centers have been getting more attractive over the years, but their future largely depends on how strong local entrepreneurship is. That is the view of Erik Gamzeyev, expressed on Vikerraadio and published as an opinion piece by ERR.
A better environment, a shrinking population
Valga, Võru, Jõhvi and other centers have new squares, dozens of kilometers of cycle paths, new school buildings and recreation areas. Jõhvi in Ida-Viru County has a kindergarten, gymnasium, programming school, stadium, concert hall, cinema, shopping center and a park with a health trail, most within a short walk of each other, and most residents live nearby. Jõhvi's film town is due to open next week, and construction of a new library and community center is meant to begin this year.
Yet the improved living environment has not stopped the population from declining. One reason is pay: in the second quarter of this year, the median salary in Jõhvi Parish was 1,448 euros, against 1,840 euros nationally. The figure would be lower still without the many public-sector employees, such as those at the prison, the Defense Forces, the hospital and schools.
A vicious circle for small businesses
Gamzeyev says fewer residents mean less demand, so firms cannot grow or pay good wages, and people move away for work. Taxes and other costs are the same for local entrepreneurs as in the capital, where the market is far larger. Some, he says, try to survive by concealing income. The Tax and Customs Board has said that about 9% of people employed in Ida-Viru County are paid under the table.
The author concludes that some entrepreneurs eventually close their businesses, leaving residents of small towns with fewer services.
A call to voters
Gamzeyev urges people to approach Riigikogu candidates at party tents in the coming months and ask what they will do to strengthen business in Jõhvi, Põlva, Valga, Paide, Kuressaare and elsewhere, and not to accept vague slogans.
