Economy and Entrepreneurship PDF Prindi

The Strategy for Regional Development in Estonia is based on the strength of the centres in counties. The towns, in which the service sector has grown considerably and those where the economy has been mostly oriented towards western markets, have better preconditions for development.

On the one hand, the regional development of the transition period was characterised by the restructuring and decrease in importance of agriculture. On the other hand, the adaptation of the towns to a new economic environment has been quite successful. This explains why most of the island’s businesses have had such a strong concentration in Kuressaare or its nearest vicinity.

The companies operating in Kuressaare made up 77.1% or 2,090 MEEK of the net turnover of the companies of Saaremaa County in 1998. The companies, located in Kuressaare town and the neighbouring to it Kuressaare and Kaarma Municipalities, made up 85% of the net turnover of the county.

Out of the total personal income tax, received from the companies of Saaremaa in 1998, 62.5% or 66 MEEK has been received from the companies in Kuressaare.


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