Latvijas valsts un sabiedrības izaicinājumi un to risinājumi starptautiskā kontekstā (INTERFRAME-LV)

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https://dspace-dev.lu.lv/handle/7/53910
"Latvijas mantojums un nākotnes izaicinājumi valsts ilgtspējai" projekts

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Browsing Latvijas valsts un sabiedrības izaicinājumi un to risinājumi starptautiskā kontekstā (INTERFRAME-LV) by Author "Brence, Ieva"

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    CHALLENGES ON ACCESSING FINANCE FOR MICRO-ENTERPRISES IN LATVIA
    (LLU, 2021-05) Beizitere, Ilona; Sloka, Biruta; Brence, Ieva; Jermolajeva, Elita
    Financial support of companies for their development is considered and realised by many countries worldwide, also in Latvia. Latvia has been receiving critical remarks from entrepreneurs in regard to high level of refuse for financing from the financing institution ALTUM which is the principal intermediary of EU funds and provides resources to support entrepreneurship in Latvia. Statistical data indicate that there are significant reductions of micro-enterprises during recent years. The survey data showed that ALTUM rejected 39 % of the surveyed micro-enterprises from those who had submitted applications within three years. In turn, only 6 % of micro-enterprises have received full financing from banks or leasing companies. Funders rejected applications from 9 % of micro-enterprises while another 5 % themselves withdrew funding due to unacceptable conditions. Latvia has to address serious challenges in entrepreneurship development in regions in particular with a lower economic activity. The aim of the paper is to analyse situation of microenterprises for receiving funding. Research methods: analysis of scientific publications and results of previous conducted research, analysis of data obtained in survey of enterprises on questions of financing refuse and on evaluations related to financing conditions in recent years. For a more thorough data analysis (used evaluation scale 1-5) indicators of descriptive statistics are applied: indicators of central tendency or location – arithmetic means, mode, median; indicators of variability or dispersion – range, standard deviation, standard error of mean; cross – tabulations; testing of statistical hypotheses using t-test and analysis of variance – ANOVA; correlation analysis. Research results indicate that the use of more precise requirements of financing for micro-enterprises by finance institution ALTUM could benefit in better development of entrepreneurship in regions of Latvia.
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    THE ROLE OF FINANCIAL SUPPORT FOR THE PERFORMANCE AND SURVIVAL OF MICRO-ENTERPRISES
    (Vilnius Gediminas Technical University, 2021-05) Beizitere, Ilona; Sloka, Biruta; Brence, Ieva
    Purpose – to examine the Latvian micro-enterprises having indicated the external financing as an important factor for their development. Research methodology – the results of the ad hoc survey (WAPI) on companies registered in Latvia in nationally defined sectors are used. Valid responses were received from 2.511 companies, of which 1.879 were micro-enterprises, the results were processed by using the SPSS programme. Findings – micro-enterprises that have not received the necessary external financing in previous years were less sustainable in the later period. Of the liquidated micro-enterprises examined, 16% were closed in 2020. Research limitations – the study highlights the impact of the availability of finance factor on the survival of micro-enterprises. Practical implications – the findings are useful for business support policy makers to identify preventative measures to ensure the resilience of micro-enterprises in times of economic turmoil when the spread of the Covid-19 has affected economy. Originality/Value – although scientific research on the need for financial support for companies has already been conducted in recent years, our study emphasizes the importance of access to finance for micro-enterprises.