Track: Business Management

Abstract

    In modern conditions, innovative projects and commercialization of technologies is one of the most important factors in ensuring sustainable business development and play an important role in building a knowledge-based economy. SMEs represent a significant part of the national economy, approximately 99.8%. The problem of innovative development and growth is actual for small and medium sized enterprises. The purpose of this paper is to analyze an entrepreneurship environment and conditions conducive to the innovative development of SMEs in Latvia. This study examines a factors of entrepreneurship environment in the context of innovation development of small and medium-sized enterprises in the Latvian market. The methodological basis of the paper consists of analysis of scientific literature and publications, data of statistical reports, normative acts of the EU and the Republic of Latvia. According to a survey of SMEs and banks conducted by the Bank of Latvia, 13% of SMEs surveyed identified a lack of innovation as a factor that significantly limits SME growth. In addition, according to Eurostat, almost 90% of companies in Latvia indicate that they do not have a compelling reason for innovation, while around 7% considered the issue of innovation but the obstacles were too significant.

Keywords

SMEs, innovation, entrepreneurship environment, startup