Increase in Overnight Stays Among Icelanders

Having fun at Gullfoss waterfall

According to the short-term indicators on the tourism industry recently released by Statistics Iceland, more Icelanders stayed in hotels than in the year previous. Simultaneously, a slight drop in the number of foreign overnight stays was also measured.

Slight decrease in overnight stays

Total overnight stays in March 2024 amounted to 428,197, compared with 423,554 in March 2023. This represents a slight decrease of around 1%.

Notably, the number of overnight stays by Icelanders increased significantly year-on-year, with March 2024 seeing 85,136 overnight stays, a 10% increase from March 2023.

Overnight stays from foreign visitors did, however, slightly decrease. In total, foreign travellers bought around 343,000 hotel overnight stays in March of this year.

Slight decrease in air traffic year-on-year

Among the other statistics released in the report are numbers on air traffic. In the short-term indicators recently published, there was a slight decrease in the total number of passengers and flights. In April of this year, some 5,409 flights arrived and departed from Keflavík International Airport, a decrease of around 7%.


Despite the slight decrease in air traffic, the tourism industry continues to grow. In February 2024, travel companies turned over almost 109 billion ISK [$788 million, €725 million], which is a 10% increase year-on-year.

Other trends that can be seen in the latest statistics include a decrease in road traffic across much of the Ring Road, though road traffic in South Iceland increased by 4%. The total number of rental cars also increased, growing from 27,432 in May 2023 to 29,827 in May 2024. This represents an increase of 9%.

 

March Labour Report Shows Slight Decrease in Unemployment

reykjavík construction

The monthly report issued yesterday by the Directorate of Labour shows a slight decrease in March unemployment numbers.

The Directorate of Labour report shows March 2024 unemployment rates sitting at 3.8%, a decrease from February’s rate of 3.9%. In total, the report shows an average of 7,518 unemployed individuals in March 2024.

Differences by gender, region

Of the total unemployed in March 2024, some 4,344 were men, and 3,174 were women.

There were also some regional differences in unemployment. As might be expected, unemployment rates were higher on the Reykjanes peninsula, the area affected by the ongoing eruptions near Grindavík. Unemployment on the Reykjanes peninsula was recorded at 6.5% for March 2024, a slight decrease from 6.9% in February.

Unemployment rates generally went down for the entire nation except in the capital region. In the capital region, rates remained stable at 3.8%.

North Iceland saw the lowes rates, at 1.5%, and the next-lowest rates were recorded in East and West Iceland, around 2.7%.

Other figures from the report

A total of 283 new jobs were advertised in March through the Public Employment Service.

In March, 81 individuals received recruitment subsidies within companies or institutions, and eight individuals received start-up subsidies.

In March 2024, the Public Employment Service issued 142 work permits to foreign nationals to work in Iceland, 110 of which were in the capital area.

 

 

 

Keeping the Balance

maría guðmundsdóttir

Next year, Parity (est. 2017) is scheduled to release the adventure game Island of Winds. Loosely based on the so-called “witch-craze” in 17th-century Iceland, the game draws upon elements of nature, folklore, and history – with a focus on puzzles and empathy encounters. The game features nine unique areas inspired by Iceland, including glaciers, highlands, […]

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Home Goods Store Rúmfatalagerinn Changes Name to JYSK

jysk rúmfatalagerinn

Rúmfatalagerinn, the Icelandic franchise of the Danish home goods store JYSK, will be changing its name.

The store, whose name means “the linen warehouse,” will now simply be known by the original Danish JYSK.

What’s in a name?

The name change has occasioned discussion on the role of Icelandic in the public sphere.

In an interview with Vísir, professor emeritus Eiríkur Rögnvaldsson stated: “One name at a time doesn’t matter per se, but we have to look at this in context and what such a name change indicates about our ideas regarding Icelandic and foreign languages. Why do we always avoid Icelandic?” Although Eiríkur admits that this name change in particular seems relatively inconsequential, he remains concerned about the usage of Icelandic as a public language. Additionally, he stated that the name JYSK does not conform well to Icelandic pronunciation or grammar.

Notably, the Danish store is also known by the German “Dänisches Bettenlager” in many other nations throughout Europe, including Germany and Austria, and also Spain, France, and Portugal.

According to representatives from Rúmfatalagerinn, the name change is intended to reflect that the store offers much more than bed linens.

“Such isolated examples don’t matter much,” Eiríkur stated. “It makes no difference even if someone like Toppur [an Icelandic beverage company which recently changed its name to Bonaqua] or some company like Rúmfatalagerinn changes their name. What I am much more concerned about is what lies behind it. This attitude, or idea, or belief that foreign names are somehow better and that Icelandic names are awkward is what worries me.”

A larger context

The recent debate over the name change is just one part of a larger conversation taking place in Iceland. As mass tourism and shifting demographics change the face of Icelandic society, some have expressed concern that the Icelandic language is slowly being supplanted by English.

Minister of Tourism, Commerce, and Culture Lilja Dögg Alfreðsdóttir has recently spoken out against the increasing prevalence of English on signage in downtown Reykavík, saying that “we have gone off track.”

“All signs must have Icelandic first,” continued Lilja. English has become increasingly common as a language of commerce not just in the capital, but throughout Iceland, in the wake of the tourism boom. Indeed, some establishments, especially those oriented towards tourism, may only have signs and information available in English.

Lilja has also stated that visible usage of Icelandic is especially important for immigrants who are learning Icelandic: “We are collaborating with the tourism industry and business sector to take steps to make the Icelandic language more visible.”

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Coastal Fishermen Face Shortest Season Ever if Quota is Not Increased

Iceland’s Association of Small Boat Owners (Landssamband smábátaeiganda) has sent a formal request to the Minister of Fisheries calling on her to increase the coastal fishing quota for this year by 4,000 tonnes. The coastal fishing season is intended to last from May until August, but so far this year 72% of the cod quota has already been caught. If additional quota is not added, this coastal fishing season could turn out to be the shortest ever, leaving some 726 fishermen out of work and impacting secondary jobs in harbours and fish processing.

Not enough quota for independent fishermen

Iceland’s current coastal fishing system was implemented 15 years ago with the aim to give smaller, independent fishermen a path into the industry. The number of boats with coastal quota grew from 663 last year to 726 this year, and the number of fishermen has increased steadily in recent years, likely due to a significant increase in fish prices. This year the cod quota set aside for coastal fishing is 10,000 tonnes, 5% of the total annual quota. For the number of coastal fishermen wanting to partake, that quota is not enough. Last year, the quota ran out in mid-July and based on current catch amounts, it could run out even earlier this season.

East Iceland disproportionately affected

When quota runs out early in the season, it affects Iceland’s regions disproportionately, as the cod arrives to the western regions earlier in the season before travelling north and east later in the summer. If the quota is finished before the fish complete their loop around the island, fishermen in East Iceland can miss out on the season entirely. The Association of Small Boat Owners pointed out that increasing the quota for this season would ensure equal distribution of quota between regions.

Cod stocks are in good shape

The latest figures on cod stocks from the Marine and Freshwater Research Institute show that the fish is in good shape, and the Association of Small Boat Owners assert that there is room to add up to 7,000 tonnes to the cod quota without negatively impacting fish stocks. The association also points out that it is unlikely for the largest companies on the market to reach the total allowable catch quota as there are summer vacations and closures ahead at the country’s largest fish processing plants.

Read more about coastal fishing in Iceland.

Agreement Reached Between Central Bank and Íslandsbanki

íslandsbanki

In a statement published this morning by the Central Bank of Iceland, an agreement has been reached to conclude the matter of Íslandsbanki’s controversial March 2022 sale of shares.

The statement can be read here, in Icelandic.

The Financial Supervisory Authority of the Central Bank of Iceland has been examining the alleged violations by Íslandsbanki of security trading regulations since last year. The examination by the Financial Supervisory Authority focused on the conduct of Íslandsbanki in the offering of the state’s 22.5% ownership stake in Íslandsbanki in March of last year.

The report states that “the management and CEO of Íslandsbanki have not implemented satisfactory governance practices and internal monitoring, which ensure effective and prudent management, including the failure to ensure that the bank complies with legal requirements regarding the provision of investment services and adherence to its own internal regulations.”

Íslandsbanki to Pay ISK 1.2 Billion in Fines

Preliminary findings of the Financial Supervisory Authority were sent to Íslandsbanki on December 30, 2022. In a letter dated January 6, 2023, Íslandsbanki expressed its intention to resolve the matter through a settlement with the Financial Supervisory Authority of the Central Bank.

By signing the agreement, Íslandsbanki admits to having violated specific provisions of the Act on Securities Transactions, in addition to committing to take remedial measures. Íslandsbanki is required to pay the fine to the treasury by November 1, 2023.

Among the violations described in the report are Íslandsbanki’s failure to record phone calls, providing customers with inaccurate information about the terms of the offering, and incorrectly assessing customers’ applications to be classified as professional investors. The March 2022 offering was nominally only open to professional and institutional investors. However, Íslandsbanki classified eight clients, who were retail investors, as professional investors without meeting the legal criteria.

Additionally, the bank did not take sufficient measures to prevent conflicts of interest, such as the involvement of directors and employees of the bank in the offering and adequate separation of duties, and the bank did not conduct a proper risk assessment in relation to its participation in the sales process.

Finally, Íslandsbanki was found to have failed to fully meet its obligations to operate in a fair, honest, and professional manner, in accordance with “normal and sound business practices.”

Iceland Must Tackle Inflation and Make the Most of Immigration

Iceland’s economy is currently one of the fastest growing in the Organisation for Economic Co-operation and Development (OECD). Foreign tourism and strong domestic demand are the reasons for this growth, but it is expected to slow, according to the latest OECD Economic Survey of Iceland. The OECD recommends that Iceland’s policy continue to focus on bringing down inflation, strengthening productivity growth by improving the business climate, and helping migrants integrate.

“Iceland has rebounded strongly from the pandemic and has proven resilient in the face of the economic impact of Russia’s war of aggression against Ukraine across Europe and globally,” OECD Secretary-General Mathias Cormann said when he presented the survey in Reykjavík alongside Minister of Finance and Economic Affairs Bjarni Benediktsson. “Continued monetary policy and fiscal policy tightening remain necessary to return inflation to target and properly anchor inflation expectations. Establishing a one-stop to simplify access to migrant integration services, including skills recognition and Icelandic language literacy, will help to optimise the beneficial impact of the increased number of migrants on long-term growth.”

Inflation to decline but persist

Inflation has remained persistent in Iceland despite efforts to tackle it, including consistent interest rate hikes by the Central Bank. According to the OECD survey, it is projected to decline but still exceed 3% by late 2024. Economic growth is expected to moderate from 6.4% in 2022 to 4.4% in 2023 and 2.6% in 2024, according to the OECD. There are indications that Iceland is reaching its capacity for tourism, and as the industry levels off, household consumption is expected to slow and real wages to continue to weaken.

Reforms to business climate recommended

The OECD survey found barriers to entry for domestic and foreign companies to be relatively high in Iceland, despite progress in tourism and construction. It suggested structural reforms to improve the business climate, such as easing the overreaching system of licences and permits and investing in skills relevant to the labour market. Such reforms would reinvigorate productivity, which has been trending upward by only about 1% yearly, and would help with the fight against inflation, according to the OECD.

Aging population a risk to debt sustainability

When it comes to public expenditure, the survey emphasises that spending on health and long-term care is expected to rise considerably as the population ages, although from a lower base than in almost any other OECD country. The survey recommended reforms such as lifting the retirement age and reducing tax expenditures to slow the build-up of debt.

Better integration of migrants required

Figures from the OECD survey show that immigration in Iceland is rising faster than in other Nordic countries and that it brings large economic benefits. The median age of immigrants in Iceland is lower than in any other OECD country, at between 30-35 years, and their participation rate is higher than in any other country, at over 85%.

The OECD survey emphasises that Iceland should step up its efforts to better integrate migrants and their children, such as by establishing a one-stop shop for services, which would make language training courses more effective and would ease skills recognition. More support is needed for students with immigrant background, including more teacher training in multicultural education.

“Successful integration also requires meeting the housing needs of the immigrant population, including through increasing the supply of social and affordable housing,” the OECD press release on the survey states.

An overview of the survey including findings and charts is available on the OECD website.

Central Bank Raises Interest Rate 1%, Now at 7.5%

central bank of iceland

The Monetary Policy Committee of the Central Bank of Iceland has raised interest rates a further 1%. This is the twelfth rate hike in a row, and key interest rates, that is, the interest rate on seven-day term deposits, now sits at 7.5%.

The interest rate in Iceland has not been higher since 2010, when the Icelandic economy was still recovering from the banking collapse.

Inflation Rate Now 10%, Up 1.39% from January

In a statement released by the Central Bank of Iceland, the rate hikes are described as a response to continuing inflationary pressures. Inflation in Iceland currently sits at 10.2%, far above the Central Bank’s goal. Despite a cooling housing market, the Central Bank still forecasts future increases in the inflation rate.

For comparison, headline inflation rates in Europe currently average around 8.5%. Key European Central Bank interest rates were raised to 3.5% in response to recent upsets in international banking, including the UBS takeover of Credit Suisse.

The Central Bank has also pointed to a tight labour market in Iceland, with tense negotiations between labour unions and employers, and relatively high numbers of job openings, driving up wages.

interest rates in iceland
Central Bank of Iceland: Interest Rate Since Jan 2019

In their statement on the latest rate hike, the Central Bank said: “Under these circumstances, it is important to prevent a wage-price spiral, particularly in view of the strong demand pressures in the economy and the upcoming wage negotiations. The MPC will apply its policy instruments so as to ensure a better balanced economy and bring inflation back to target.”

Interest rates in Iceland now stand as follows:

Overnight loans 9.25%
Seven-day collateralised loans 8.25%
Seven-day term deposits 7.50%
Current accounts 7.25%

Notably, predictions last week estimated the latest rate hike would only account for .75%.

Making It Work

The uphill battle for equality in the workplace and technology’s latest solutions

It’s been 43 years since Lilly Tomlin, Jane Fonda, and Dolly Parton solved the equality issue in the seminal film 9 to 5, but somehow, we constantly find ourselves running into the same old stumbling blocks, and even some new and unexpected ones. Venture capital investments are only a tiny fraction of the business world but they are indicative of a larger issue. No matter how you slice it, women still aren’t on equal footing with men in the workplace. Despite the situation, plenty of things have changed since 1980, including attitudes towards inequality as an issue. Women are a much larger part of the workforce and they’re putting in the effort to change the game.

Someone recently tweeted about a relatively young Icelandic tech company that’d just gotten a large investment. When someone jokingly replied asking where a woman could go to find such a large sum of money, the jesting tone was lost on the original tweeter who replied that investments like this are the result of years of hard work, something that many men and women can and do earn. It’s a nice thought, isn’t it? 

Except that it’s mostly men. In 2022, a report found that women-led teams accounted for 1.1 % of companies that received funding from venture capital funds. And reader – if you, like me, hoped that that number is so low because most of the teams are mixed, I regret to inform you that mixed teams received just over 10% of the funds. 88.7% of VC funding goes to all-male teams of founders. 

PayAnalytics – Working with international companies to evaluate salaries and positions for people of all genders and origins.

PayAnalytics founder Margrét Bjarnadóttir has a background in operation research. Her Ph.D. focused on how we can use data and mathematical models to support decision-making. When a COO at an Icelandic bank complained about the lack of resources to close the pay gap where they worked, Margrét was the right person to hear them, at the right time. Two years earlier, the bank had realised the extent of their pay gap and vowed to make changes. Their goal was to incorporate gender equality into all hiring processes and promotions. When they assessed progress at the end of those two years, nothing had changed. For Margrét, this was the perfect research opportunity, and she created her prototype of a mathematical model that would not only analyse the extent of the pay gap, taking into account different positions and responsibilities but also provide the solution to closing the gap. When her calculations worked, providing the bank with the tools they needed to implement change, the foundation was laid for Pay Analytics. Today, the company has clients in more than 50 countries, the largest of which comprises hundreds of thousands of employees worldwide.

Since its beginnings in 2016 when the idea for PayAnalytics won the entrepreneurial competition Gulleggið, Margrét has found the conversation regarding the pay gap is changing rapidly. “When we were starting out, we needed to explain to investors that there were companies that needed this kind of service, but we donʼt anymore. There’s been an avalanche of rules and regulations all over the world requiring companies to measure pay gaps and release the results. They differ from country to country but in the EU, for instance, when you advertise a position you will soon be required to also advertise the pay range.”

When the percentage of VC funding allocated to women-led teams comes up, Margrét nods sympathetically. While acknowledging that every company’s trajectory is different, she recognises the stories of investors asking defensive questions and focusing on risks rather than potential successes when talking to women. “By now, I can send the guys out to investor meetings,” she states jokingly, referring to the CEO and the CFO. On a more serious note, she continues: “The pay gap and lack of investment in female-led companies come from the same root: implicit bias. We all have it and it taints our decision-making,” Margrét adds. Her approach is to fight bias with data. “Documentation also helps, such as writing down why people get raises. Research shows that having to provide neutral descriptions of why people get raises lessens the pay gap.”

Every successful idea raises the question: Why hasn’t someone done this before? When I pose the question to Margrét, she refers to the cultural environment. “It’s not a coincidence that we’re an Icelandic company. Iceland has always led the way in this regard. Gender equality is a topic that people of all genders in the country care about. The issue was on people’s radar much sooner than in other countries.”

For Margrét, we’re in a unique position to tackle inequality. “We’ve never talked this much about diversity, inclusion, and equity. And the regulations and legislation are being put into place to back it up.”

Empower Now – Digital consultation working to create inclusive workplace culture.

While Pay Analytics focus on financial equality, Empower Now offers a holistic DEI (diversity, equity, and inclusion) solution to develop people-friendly workplace cultures. This extends beyond finances to areas including employee experience, public perception, recruitment processes, parental leave, diversity, and team surveying. But the first step is to assess the current status. Sigyn Jónsdóttir is the CTO of Empower Now and in her opinion, there is still much work to be done. “The fact is that most workplaces can and should do better,” she tells me. Once Empower Now has analysed the situation and isolated the issues, they provide a solution to the challenges that come up, based on measuring, goal setting, and education. “We offer micro-learning modules on DEI topics that leave an impact. An easy example would be our short videos in mobile format that the employees can choose to watch anytime, so people gain perspective and education, which they can then apply in real life.”

Founders Dögg and Þórey have been working as DEI  consultants for years but in-person consultation is impossible to scale up to an international level. The scalability comes in taking the process digital. 

Sigyn explains further: “If a scandal occurs, many issues can arise, from losing valuable employees due to completely preventable bias, to affecting bottom lines, like the company’s stock tanking. Since #metoo, they’ve found that old-fashioned crisis management practices, like simply firing a CEO, don’t necessarily repair their brand image or employee trust. Nor correct behaviour and prevent it from happening again. Issues of discrimination or bias are never down to one person. Even if the issue stemmed from a single person, it is still down to culture. It becomes a scandal when it’s not immediately handled and corrected properly. If something like this has been happening at your company, people know that it’s an issue with the workplace culture. But companies are a little lost on how to correct issues when they arise and prevent them from happening in the first place. That’s where we come in.”

There aren’t many men working in the gender equality business and finding out that it was mostly women cleaning up misogyny’s messes was a glum start to my research. Sigyn, however, has a more uplifting take. “Often, we get our foot in the door because a person who has experienced inequality gets us involved, but it’s important to us that it doesn’t fall on victims of discrimination to get Empower Now integrated into their workplace. Senior leaders who want to create equitable companies need to take action. The pressure is usually on groups who are the most vulnerable to bias to fix matters, which creates an unnecessary additional burden. But they also are often the greatest drivers of change.” According to Sigyn, it makes sense for those who are susceptible to discrimination to have a voice in fixing it. “That shouldn’t change. But they can’t be tasked with the responsibility of fixing these problems. People in a position of power should focus on being allies to those with less power and support their work.” 

Sigyn’s optimism is only slightly dampened at the mention of the 1.1% figure. “A recent study from Harvard Business Review shows that when pitching to VCs, men tend to get progressive questions focusing on potential gains, while women get more defensive questions focusing on risk and potential losses,” she states. “A progressive question might be something like: How do you plan to monetise this? While a similar defensive question would be: How long will it take you to break even?” Interestingly, she adds that there doesn’t seem to be a difference if it’s a man or a woman posing the questions. A dearth of women presenting their ideas can also be explained by the state of the startup world: “The startup scene has been known for its ‘bro’ culture, and that’s not a culture that supports DEI in any way.”

Empower Now is the rare instance when a women-led team gets funding based on an idea, without presenting a ready-made prototype. “Usually, teams have to be much further along in product development to get an investment. I hope that with more funds being available at the very early stages of a company’s development, that things might be changing. Unfortunately, I think, given the news in the last weeks about investments in women-led teams globally being down in 2022, it may only be an aberration.” In Sigyn’s opinion, things are changing for the better, but she has to admit the statistics don’t support her optimism. Yet.

GemmaQ is working on a gender diversity index for investment professionals, based on the mounting evidence that gender equality is not only a question of equality but can also be an indicator of a lucrative business. 

Freyja Þórarinsdóttir is the founder of GemmaQ, an index which automatically rates publicly traded companies according to management diversity. The reason why investors should focus on companies dedicated to equality isn’t just moral or ethical. According to Freyja, investing in equality is good business: “There’s a correlation between diversity and an above average profitability. Although we don’t have evidence of causation, multiple studies have shown us that companies with greater representation of women in corporate leadership are more likely to outperform those with less diverse leadership.”

 “First and foremost, there’s a marketing aspect to being able to state publicly that your fund is only investing in companies who’ve got it together when it comes to equality and to be able to back it up with data,” Freyja states. Before launching GemmaQ, she was with the Merrill Lynch wealth management division of Bank of America in Seattle and a director and team leader at the Central Bank of Iceland. In addition to her degrees in law and political science, Freyja received a Master’s in Economic Policy Management from Columbia University. Her work in asset management showed her that besides wanting a return on their investment, clients wanted to know where their money went and if it was making a difference. While there was a distinct generational shift in clients’ sense of responsibility, it’s clear that pension funds, for example, are set on investing in a more responsible way, as are large national funds such as the Norwegian oil fund and Japanese pension funds. 

GemmaQ is a technical solution that gathers public information on companies’ management diversity and monitors changes that would jeopardise it. Officially started in 2019, the project has earlier roots as Freyja’s research project at Columbia University. With 15 years of diversity data at her disposal, Freyja explains that while things are looking up, attitude-wise, the numbers are still bleak.

 “Gender Lens, the GemmaQ Fortune 500 index, tracks the gender leadership balance among Fortune 500 companies. It shows that women represent only 10.2% of Fortune 500 companies CEOs, and just 6.6% of board chairs today. With five new women taking on CEO roles in January 2023, this is becoming a record year with women in leadership roles”. 

 

In the US, legislation differs significantly by state. Some states have required gender quotas on company boards, while some companies are required to list their gender ratios publicly. In some states, however, there are no regulations at all. “Even though there are differences between companies in the same sector depending on their location, we are seeing the same trend across states,” Freyja tells me. “Women are being promoted at far lower rates to leadership roles than men. The rate of change is unacceptably slow.” 

Heima – An app that organises housework and family life, splitting tasks equally between family members, ensuring an equal division of labour while removing the mental load of managing the home.

The business world doesn’t exist in a bubble. And in spite of the recent explosion of the fintech sector, it is still run by humans, not robots. It’s not enough to make sure the business world is paying people of all genders equally, providing a healthy environment, and diversifying their management teams if the pressure of housework and managing the home doubles their workload when compared with men. That’s how women get burnt out. According to Alma Dóra Ríkarðsdóttir and Sigurlaug Guðrún Jóhannsdóttir, their app will not only lessen the workload in the home but also make your relationship better. “We believe the key to happy family life is to work well together and communicate well. We went with a software solution, a management tool that enables people to cooperate harmoniously, much like work management tools operate in the workplace.” Data suggest that women do 75% of housework worldwide which negatively impacts their personal and professional development. Alma continues: “The idea was inspired by my work as a specialist in gender equality in the Prime Ministry. We were mapping the major equality issues in Iceland and the world, and the unequal division of housework is a foundational issue. If we’re going to have equal pay and equal opportunities, we need to start at home and make this right.” When introducing their idea, Alma and Sigurlaug had to start at the very beginning, by explaining the concept of the mental load of managing housework, sometimes referred to as the third shift: “The invisible managerial work in the home that’s less tangible than simply washing the dishes or cleaning floors. We’re bringing that unseen work to the surface.” In Iceland, VR, Iceland’s largest trade union, launched a national campaign to introduce the idea to people. “We do sometimes have to explain the concept of the mental load, especially when talking to people from outside of Iceland. It’s becoming better known worldwide, but in Iceland, everyone knows what it is, following VR’s campaign. Before, we would have to introduce the concept to people doing user reviews. Now, people bring it up in the first place,” Alma says.

While younger people are generally more excited about technological solutions, in the case of Heima, it makes perfect sense. “We’re focusing on younger people, who might have young children. People who’ve been living together for decades have their own routine that they’ve settled with their partner and it might not need disrupting. We’re doing this for the people in the process of creating their housework division and settling their routine. People who want more equality, less hassle, and more joy in the home.” According to Alma, tension over housework is the third most common cause of divorce worldwide, so there’s a lot to be gained.

On the issue of finding funding, the developers behind Heima have received initial funding. Now they are marketing their concept to investors and developing their business plan for their second round. Alma is hesitant to make generalisations about the startup environment. “What I can say is that I was working for the Ministry of Industry and Innovation, looking into funding for women, and what I found was that very often, when assessing the success of innovation projects, what’s looked at are the results, the successes, the companies that have made it through and been successful. And men are much more heavily represented. So if your idea of a perfect entrepreneur is Mark Zuckerberg, women will always be further from the goal than men.”

Startups are looking towards the future, trying to be the first to decipher what it may hold, being the first to introduce new solutions and technology into our lives. But somehow, when it comes to business, they keep betting on the exact same type over and over again. “They’re trying to make you fit into a male entrepreneur cookie cutter instead of acknowledging that women bring different things to the table. I think that plays a part. Also, many funds talk a lot about a funnel problem, that the percentage of women who receive funding represents the percentage of women that approach them, but it has been demonstrated that funds who make an effort to highlight women and make sure women know about them and that they have access to them have a higher proportion of women in their portfolio. So it’s not a funnel problem, it’s a question of accessibility.” While funds are in the end only responsible for maximising the return on their investment, Alma maintains that the singular approach to finding projects likely to succeed is limiting their scope. “We know that women tend to be more conservative in their estimations of success than men are. So instead of pushing them to create more unrealistic business plans, you could factor that into your calculations, while keeping in mind that men’s goals are likely to be unattainable.”

Finally, the women behind Heima arenʼt afraid to state that they’re not doing this just to serve their ideals. “We’re not afraid to say that this is a for-profit company. We intend to give our investors a return on their investment. We want to find a way to get our solution to as many people as possible.” That’s how they make their mark. “With money, you can scale up, you can enter more markets, introduce your solution to more people and have a bigger effect. We can give our app to the thousand people on our mailing list and that would have an effect but we could also try to get it to a million people in two years and that will have a bigger impact.”