BUSINESS STRUCTURE IN THE PRIVATE SECTOR

The Greenlandic Business Register (GER) is the basis for describing the economic structure in the private sector.

Land-Based Businesses

Most land-based businesses are professions, whose development in turnover is dependent on developments in three other professions, namely fishing and hunting, raw materials, and tourism. These companies are important in connection with future business development and are generally less subsidized than e.g. fishing and tourism.

Retail Trade

Retail trade is dominated by grocery stores but a wide range of retail stores of specialty products also exists, primarily in major towns.

The three big players in retail are the consumer-owned Kalaallit Nunaanni Brugseni (The Greenlandic Brugsen), the privately owned chain Pisiffik Ltd, and the government owned KNI Ltd with the secondary name of Pilersuisoq Ltd.

Characteristic of Greenland retailing is that almost all consumer goods are purchased in Denmark. The wholesale price trend in Denmark is therefore crucial for price developments in Greenland.

Construction

The construction line of business is characterized by the fact that it is mainly public or publicly owned companies which operate as builders.

Maintenance and Renovation

A growing proportion of the existing buildings have an age where maintenance and renewal are increasingly necessary. The renovation of homes, buildings for educational purposes, technical installations, and infrastructure therefore assumes a steadily increasing importance for the activities of the construction sector.

Competitive Tendering, Construction Rules and Regulations

The construction activities are regulated by the Competitive Tendering Act of 1992, a departmental order from 1994 on tendering of works and supplies, the legal and financial basis laid out in Common Conditions for Works and Supplies in the Building and Construction Sector, the AP95 of 1995, the Building Regulations from 1982 with Supplement No. 1 from 1987 as well as a series of technical standards and regulations.

Construction Companies

The construction line of business has adapted to the geographical structure and the dispersed settlement pattern. Most companies only take orders for construction in their home town and its surrounding settlements, while only a smaller number of firms are operating across the country. Most construction companies are located in Nuuk. In 2005, Statistics Greenland published the report, "The Greenlandic Construction Sector From 1998 to 2003: Seasonal Fluctuations, Migration, and Unemployment".

Services

The group of service companies provides a wide range of very different services such as auto repair, repair of televisions and appliances, removals and transportation, chimney sweeping and cleaning.

There are some major businesses in the group but most companies are small and operate only locally. Many companies offer services which do not require skilled workers, such as refuse collection, cleaning, and taxi services. It is within this group that the number of business owners born in Greenland is the highest.

Advice

Financial advice is offered particularly in the context of audit and accounting firms or by banks and savings banks.

Technical advice for the construction sector is offered mainly by architects and consulting engineers.

Advice on IT is given by consultants and companies selling hardware and software and by database hosts and facilitators. Finally, there are companies giving advice, particularly on leadership. All major consultancy firms are based in Nuuk while smaller agencies offering bookkeeping assistance exist in communities along the coast. The consultancy firms require highly skilled labour. Therefore, the percentage of employees recruited outside Greenland is high.

Link

All registered legal units and operating units can be found at www.naalakkersuisut.gl

Read more about the three major retailers at www.brugsen.gl, www.pisiffik.gl and www.kni.gl