BUSINESS STATISTICS

BUSINESS POLICY

The overall objective of the business policy is to create the best possible environment for business in Greenland so that existing and new businesses can obtain higher economic growth and more permanent jobs in the private sector.

The current business development system was introduced in 2005. It is to:

Develop a multi-faceted business structure
Strengthen regional and local business development schemes
Increase the number of companies
Stimulate the companies venturing into exports and / or invest in products which could restrict imports
Co-finance product development and stimulate innovative projects / environments in order to add new knowledge to products and services, thus adding value for businesses for the benefit of their exports
Improve access for entrepreneurs and businesses to relevant information on business support measures, regulation of business start-ups, financing, export schemes etc.

The business development is organised in two companies with different practices, a business development company and a venture company.

Two innovation centres have also been established. Arktisk Center in Sisimiut operates in the building, environment, and energy sector in cooperation with the Building and Construction School, ARTEK, the Centre for Arctic Technology and DTU (the Technical University of Denmark). In Maniitsoq, an innovation centre operates in the fish and food sector in co-operation with the Fish Processing School (Aalisakkanik Tunisassiornermut Ilinniarfik) and DTU.

Business Support Schemes

A key part of the business development system is the business support schemes whose purpose it is to provide funding. The schemes cover:

Discounts on basic consultancy on corporate establishment as well as export and innovation
Product development support
Guarantees for loans
Support from the business support fund, NUKIIT

The Business Development Company, Greenland Tourism and Business Council Ltd

In 2005, Greenland Tourism Ltd was transformed into a professional business development company and renamed Greenland Tourism and Business Council Ltd (GTE).

GTE offers advice for land-based businesses. In 2007, GTE took over arranging and advising on Nordic and European co-operation programmes from Greenland Venture Ltd.

The tasks of GTE in relation to tourism and land-based industries are defined in a service contract with the Government of Greenland.

Greenland Development Ltd

Greenland Development Ltd is funded via a service contract with the Government of Greenland. The primary focus of the company is the aluminum industry which has shown interest in hydropower resources of the country.

Greenland Venture Ltd

Greenland Venture Ltd provides risk and long-term capital, especially in connection with corporate planning and development. The venture company operates on a commercial basis.

The Business Development Council of Greenland

The Business Council of Greenland is to examine how to best ensure a prosperous future for the Greenlandic economy. The council is charged with identifying the main areas for economic growth, sustainable business development, and sustainable jobs in Greenland, now and on a long-term basis.

Supply Covered By Service Contracts

The Government of Greenland has a framework agreement with KNI Ltd. on the delivery of goods and energy. The agreement states that there should be no cross-subsidization between goods and energy supplies. This means that costs cannot be shifted between accounts of the two supply areas which could lead to distorted price ratio between goods and energy.

Supply of Goods

According to a service contract with the Government of Greenland, KNI Ltd is required to provide settlements and outlying districts with basic commodities according to a specified assortment, covering a range of consumer goods, including tools for the catching and fishing line of business.

The service contract also includes obligations for KNI Ltd to run a wholesale business and offer groceries to other retailers on specified conditions.

Oil Supply

The government also has a service contract with a separate subsidiary of KNI Ltd, Polaroil Ltd, whose job it is to buy, transport, store, distribute, and sell gas, kerosene, and gasoline throughout the year for all of Greenland at the lowest possible prices.

Links

Read more about the Centre for Arctic Technology at www.arktiskcenter.gl and about the Fish Processing School at www.ati.gl