Title: Vulnerability in Small Single Industry Towns in Sweden - A Case Study of Hofors
Municipality
Svenska: Små och sårbara industriorter i Sverige - en fallstudie om Hofors Kommun
Subject: Business Administration
Keywords: Business Climate, Network, Collaboration, Single Industry Towns
Background: There is a dependency situation between the industry and the municipality. This
makes Hofors municipality vulnerable. The industry Ovako Steel is the biggest employer in the
municipality and is therefore very important to Hofors. If a place have a good business climate it
is easier for employment opportunities, good ideas and entrepreneurship to grow easily. There is
a lot that a municipality can do in order to enhance the business climate.
Purpose: The purpose of this research is to identify to what extent a good business climate can
impact on the vulnerability situation for small single industry towns in Sweden.
Method: Case study with semi-structured interviews and secondary data.
Conclusion: Based on our empirical study a good business climate could be seen as a useful
strategy for small and vulnerable single industry towns in Sweden. By developing a good
business climate, the more attractive it is for entrepreneurs to start their businesses and broaden
the business community. Municipalities with a good business climate is also a place where it
easier to start new work opportunities in times of reductions in the industry.
Being dependent on one industry does not have to imply only negative effects. In our empirical
study of Hofors situation the collaboration between the network Entré Hofors and the industry
Ovako Steel is reciprocally and positive. The general implication for Hofors and other small
vulnerable single industry towns seems to be the importance of changing the attitudes towards
entrepreneurship as well as the ability to create new work opportunities in times when the
industry needs to cut down or the worst situation possible; closing down the whole industry.
2015.