In an era where efficient, cooperative business ecosystems are paramount to fostering local economic growth, Vårgårda has once again claimed the top spot for the fifth consecutive year in the Swedish Chamber of Commerce’s Local Business Climate ranking. Close on its heels are Danderyd and Höganäs, municipalities that have proven that cultivating a positive environment for business success requires much more than just attractive tax rates or incentives. The key lies in open dialogue, active engagement, and a culture that embraces continuous improvement. Here’s a deeper dive into the strategies and frameworks that make these municipalities standout year after year.
Vårgårda – Consistent Excellence Through Collaboration
Vårgårda, a small municipality in Västra Götaland, has built its success on a collaborative approach to business development, with a key focus on partnership. The local business community is represented by the Center of Innovation (COI), which serves as a hub where both large and small businesses actively participate in shaping local policy.
Bengt Hilmersson (C), chairman of the municipal board, attributes much of their success to the open communication between businesses and the local government. According to him, having a clear line of communication allows the municipality to address concerns before they escalate, creating a more harmonious environment for entrepreneurs. The municipality avoids sending generic “application received” letters and instead fosters direct discussions between companies and municipal officials.
“We want to ensure that the businesses have a solid relationship with the municipality,” says Hilmersson. “We prefer fewer, longer company visits over meeting as many people as possible. This way, we build deeper, more meaningful relationships.”
One of the standout features of Vårgårda’s business climate is its commitment to quality over quantity. Regular, face-to-face interactions allow for real-time feedback, enabling the municipality to continuously adapt to the needs of its businesses. This approach has earned them the second-highest rating in the country for service, hospitality, and processing times, a testament to the municipality’s commitment to smooth and efficient business operations.
Danderyd – A Model of Systematic Dialogue
While Vårgårda holds the crown for the fifth year running, Danderyd, a municipality in Stockholm County, has shown remarkable consistency, securing second place in 2023 and coming close to the top spot in previous years. Johanna Hornberger (M), the chairwoman of the municipal board, attributes Danderyd’s success to systematic, organized dialogue between municipal officials and businesses.
In 2024, Danderyd introduced a new dialogue model that places business issues at the core of every administration’s operational plans. This ensures that businesses, regardless of their size, always have a clear and direct path to communicate with the municipality. “It’s about creating a system where every department understands that business issues are not separate from other issues. They are part of our culture,” says Hornberger.
The model works by embedding business concerns into the operational structure of all municipal departments. This way, the local government proactively addresses issues before they become problems. The result? High ratings in service and hospitality, as well as a system that guarantees smooth processing times for permits and applications.
Danderyd also introduced a business pilot program, which helps guide businesses through the municipality’s administrative processes. Hornberger explains, “By having a designated person to help guide businesses, they can navigate the complexities of local regulations with ease, ensuring they don’t get lost in the bureaucracy.”
The political will in Danderyd is evident, as Hornberger believes that municipalities that are proactive about improving the business climate need to have politicians who are deeply invested in the outcome. She believes that cultivating a culture of service across all levels of the administration has been essential to Danderyd’s success.
Höganäs – Agility in Action
Located in Skåne County, Höganäs has emerged as a leader in fast-tracking permits for local businesses, even before the official rollout of national legislation. Peter Schölander, the municipal director of Höganäs, explains that the municipality’s agility and preparedness were key when the Farm Sales Act came into effect. Höganäs was one of the first municipalities in Sweden to issue permits to local farms, enabling businesses to operate without delay.
“We are a visitor municipality, which means we had to be ready by June 1st. If we had delayed, all our local businesses would have missed out on the first season,” Schölander says. “Being proactive and prepared for changes in the law has made a big difference for our businesses.”
Beyond legislative agility, Schölander points to the municipality’s efforts in fostering collaboration between public officials and businesses. Similar to Vårgårda, Höganäs ensures that its civil servants are aligned with the business community’s needs, emphasizing the importance of a “helping hand” approach, rather than a “stripping hand.”
A Recipe for Success
Björn Lindgren, Head of the Department of Local Business Climate at the Confederation of Swedish Enterprise, sees the success of these municipalities as a model for others to follow. “What stands out in the most successful municipalities is the commitment of local politicians to send a clear signal to their administrations that business climate is everyone’s responsibility,” he says.
The key takeaways for municipalities looking to improve their business climate are:
- Effective Dialogue: Both Vårgårda and Danderyd emphasize the importance of communication between businesses and municipal officials. When businesses feel heard and supported, they are more likely to thrive.
- Systematic Process Improvements: Successful municipalities have a dedicated process in place to handle business-related issues efficiently. This includes everything from fast-tracking permits to offering dedicated support to businesses navigating bureaucratic hurdles.
- Cultural Shift: Business-friendly municipalities like Danderyd have embedded a culture of service across all departments, ensuring that every municipal employee understands their role in supporting local businesses.
- Proactive Adaptation: Höganäs demonstrates how staying ahead of regulatory changes and preparing for new legislation can give businesses a competitive edge. By anticipating changes, municipalities can ensure that local companies are not caught off guard.
The Full Ranking
The full ranking of all 290 Swedish municipalities shows that, while Vårgårda, Danderyd, and Höganäs lead the way, there are numerous other municipalities that are also taking significant steps to improve their local business climate. The message is clear: fostering a great business environment requires continuous effort and commitment, from both political leaders and municipal employees.
In the words of Björn Lindgren, “A great business climate isn’t built by a few managers—it’s about what every employee does in relation to the businesses that truly makes a difference. Check this link for ranked municipalities with the best to poor business climate