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There is only one effective remedy for a declining economy, declining competitiveness of companies and the economic space, and international business that has become more unfavourable for us - we must choose ambition, emphasised Ain Hanschmidt, head of the Central Employers' Association's economic working group, in the opinion columns of the newspaper Äripäev.

The 1990s are often cited as an example of bold action. Estonia, newly independent, began to build its own entrepreneurial economy, and the hunger for a market economy at the time was a powerful fuel - nothing to lose, but a lot to gain.

We are at a similar crucial turning point today. The economic downturn is in its third year, exporting companies are feeling the effects of declining competitiveness in foreign markets and soaring costs are forcing them to bring new and more value-added products and services to the market rather than price advantages. But unlike the turbulent times of 30 years ago, there is less courage today because there is now something to lose. But without courage, we lose anyway.

That settling for what is and what has been is fatal to the leap forward, both for the country and for businesses that shape the economic space, is demonstrated by a survey of our industrial leaders commissioned last autumn by the Centre for Applied Anthropology and by the latest large-scale management survey.

This has prompted business alliances, led by employers, to seek answers to the question of how to break this deadlock. Working together, business and the public sector have highlighted the need to choose ambition. Willing and decisive, and then implementing what is needed at both national and company level to break the current deadlock.

Five pillars of ambition for the entrepreneur

While the expectation for the state is to value the competitiveness of the economy and to take the necessary steps to achieve it, the ambition for business stands on five pillars.

First, you can choose to develop innovative products and services that can be sold on foreign markets and for which there is no competition.

Secondly, it means investing in new technologies and businesses with higher added value potential. The 2% club of research-intensive companies can help set the target here, and this is the kind of mindset that it promotes. These companies invest 2% of their annual turnover, or at least €1 million, in R&D activities.

Third, export ambition can be increased - both in terms of volume and the range of target markets beyond domestic and neighbouring markets. The need to find new markets is also fuelled by the difficulties of today's main exporting countries, which in turn will help to reduce future dependence on any one region.

Fourth, you can invest in digitisation and automation of your business, which will help increase labour productivity. In addition to driving through the economy, this is an unavoidable necessity due to demographic trends - the population is ageing and there are fewer and fewer people in work.

The success (or failure) of the previous steps depends on leadership, and this is why, as a fifth pillar, professional associations stressed the potential of leadership. If a company's culture is geared towards continuous renewal and collaboration with, for example, universities or other companies to develop products and services, such an organisation will be more resilient to shocks and change.

The above is simple, but not easy. You don't have to do everything at once, and you can't do everything at once, but you have to do something to escape the trap of mediocrity.

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