Increased competition has made it necessary for many enterprises to merge and in some cases to reduce total staffing, and some companies have suffered considerable losses. But Denmark's financial sector has carried through the necessary adjustments with little state assistance, unlike many other countries. Analysts expect it to advance to second place by the end of the century. Denmark does not have the sunniest climate in the world, but the beaches are excellent, clean and rarely overcrowded. Considerable effort has gone into developing theme tourism, and Denmark's many museums are well visited.
Cultural activities are another flourishing area.
The public sector provides 22 per cent of gross national product. The typical Danish industrial concern begins with a single owner and is based on that person's idea and his or her savings. If the idea is good the firm can grow and become an international business. There are examples of this in marine motors, heating and refrigeration technology, pumps, medicine, toys and many others. This lack of size has never been considered a handicap, and it is often seen as an advantage because the lines of communication are short in a small business, and new ideas can quickly become a reality.