Värska Vallavalitsus
Entrepreneurship Print

Värska rural municipality regards the development of entrepreneurship and economy in the region as essential. A multitude of local entrepreneurs and their activeness provide the local people with work; improve the environment and living conditions, bring financial resources to the area and create the basis of profit for coordinating the work of the rural municipality.

Estonian people are generally settled and do not thoughtlessly move away from their home places. In 2000 83.2% of the local people worked in Põlva county; 76.5% of them worked in Värska rural municipality and only 4.85% worked in other counties. In Estonia 10% of people work somewhere else on average. Värska has developed into a small attraction centre where also inhabitants of neighbouring rural municipalities – Mikitamäe, Orava and Räpina – come to work. On 1 September 2007 the population of Värska rural municipality was 1,493; 66% of the population form the local workforce.

There are 164 employers registered in Värska rural municipality, including 37 companies and 127 self-employed persons (Source: Estonian Tax and Customs Board, 08/10/2007). 127 self-employed persons form 77.4% of all entrepreneurs; there are also 34 (20.7%) private limited companies and 3 (1.8%) public limited companies. The main areas of activity are tourism and recreation industry (among this health tourism, accommodation, catering and active recreation), wood-processing, production of mineral water, retail business and services. The economic importance of agricultural sector is subsidiary.

The biggest companies, AS Värska Sanatoorium and AS Värska Vesi as the distributors of local products have made a reputation for Värska and made Värska commune well-known.

The biggest companies and employers of the rural municipality are:

  • AS Värska Sanatoorium – rehabilitation treatment and accommodation (80 employees)
  • AS Värska Vesi – production of mineral water, recreation industry, including Hirvemäe leisure centre (38 employees)
  • AS Värska Veekeskus – recreation industry and accommodation (23 employees)
  • Verska Mineraalvee OÜ – production of mineral water (7 employees)
  • AS Värska Puit – processing and sale of sawn timber (12 employees)

The only company which has increased the number of positions since the year 2003 is AS Värska Sanatoorium; Verska Mineraalvee OÜ has the same number of employees as in 2003 but in other companies the number has lowered. The biggest of them, AS Värska Sanatoorium and AS Värska Vesi, have invested a lot in fixed assets, infrastructure and equipment. In 2007 AS Värska Vesi will expand their enterprise to invest in warehouses and AS Mahta Kütus plans to expand their sales space. In Estonia only AS Värska Vesi has the exclusive right to distribute mineral water to the countries of the European Union. Since the year 2005 AS Värska Sanatoorium has owned the certificate which permits to supply medical rehabilitation services. In the autumn 2005 Värska water park was opened which offers water rides, swimming pools, other free time activities, also beauty treatment and accommodation.

In the rural municipality all the essential services are available: beauty treatment (hairdresser, manicure, pedicure, solarium), postal service, massage, family physician’s and dentist’s services, car repair, shops, pharmacy. It is possible to order bureau services and exchange money. A lot of tourists and guests visit Värska commune every summer but the seasonal character of tourism and the lack of clients in winter do not enable to offer some services all the year round. In the conditions of a rural area the service standard is quite high. One of the prerequisites for development of the tertiary sector is to find ways to combine different seasonal activities and cooperate.

A high level of employment in the public sector is characteristic to Värska rural municipality – there are a school, a music school, a nursery school, a youth centre, two libraries, local rural municipality government, a museum with a tea house and a branch museum (altogether up to 100 employees). 9 departments of administration and 21 non-profit associations are also registered in Värska rural municipality (Source: Estonian Tax and Customs Board, 08/10/2007). Due to the nearness of the border a lot of inhabitants work in the border guard authorities, located in Värska, Koidula and Saatse, also as officers of the Estonian Tax and Customs board. A brigade of the Estonian Rescue Board also operates in Värska.