Criticism Mounts Over Swedish Government's Industrial Policy as Small Businesses Struggle

Sweden's active industrial policy aimed at strategic investments to accelerate climate transition and selfsufficiency faces growing criticism for harming small businesses. According to Företagarna, the small business federation, state-led venture investments often benefit large companies at the expense of smaller enterprises. Failures such as Northvolt's collapse and problems at Stegra and Stålverk 80 illustrate risks when politicians act as risk capitalists, leaving taxpayers and small firms to shoulder the consequences (121965). Small businesses report their worst economic conditions since 1985, with many delaying investments amid rising costs and weak demand. Larger companies also typically delay payments to small suppliers during financial difficulties, further straining smaller enterprises. Critics argue that politically driven subsidies have failed to create sustainable growth, as Europe lags behind the US and China in economic dynamism. Instead, the government should focus on creating favorable conditions like stable energy, efficient infrastructure, smoother permit processes, and a skilled workforce rather than selective corporate support (121965). In a related municipal funding dispute, Västerås politicians respond to demands from home care provider Attendo, which seeks compensation after contract termination following safety and billing concerns. Amanda Grönlund, chair of the elderly committee, acknowledged damages suffered by the municipality due to Attendo's incorrect billing, with a police investigation now closed (121966).