On Thursday, 12 June, the Saeima adopted, in the third and final reading, amendments enabling the Ministry of Economics to authorise organisations representing start-ups to carry out measures aimed at improving the business environment in the sector.
Kaspars Briškens, Chair of the Economic Affairs Committee responsible for the draft law in the Saeima, previously stated that Latvia’s start-up ecosystem has proven itself to be a powerful catalyst for the creation of internationally competitive innovative products. He noted that with the right support instruments, talented entrepreneurs with strong ideas can develop products that raise Latvia’s profile globally and contribute to export growth. The Committee Chair also called for making full use of the opportunity to create a globally competitive environment for start-up and innovation development in Latvia. This includes a modern legal framework, close cooperation between entrepreneurs, universities and public institutions, and the provision of targeted state financial support, which would pay off significantly through new jobs, economic growth, and increased tax revenue.
According to the Ministry of Economics, start-ups are companies with high growth potential, whose core business involves implementing scalable business models and developing, producing or advancing innovative products.
The amendments authorise the Ministry of Economics to conclude agreements with organisations representing start-ups to support their establishment and attract investment, as well as to promote activities that enhance the business environment in which these companies operate.
The Cabinet of Ministers will define the eligible measures to improve the business environment for start-ups, the conditions for their implementation, and the procedure for carrying them out. It will also set qualification requirements for the organisations representing start-ups with whom agreements will be concluded, along with the rules for granting applicable commercial support. The government will determine the amount of state funding available for the implementation of the support measures. The amendments also stipulate the deletion of the reference to the de minimis regulation.
Around 4,000 people are employed in start-ups in Latvia, compared to approximately 15,000 in Estonia. Industry representatives have previously emphasised that developing a strong innovation ecosystem requires a robust core. They stressed that policymakers can provide essential support to the sector—by strengthening access to talent and technological expertise, improving capital availability, expanding support programmes for start-ups, advancing research and development commercialisation, and striving to make Latvia the most favourable country in which to grow a global start-up.
Saeima Press Service