CHALLENGES ON ACCESSING FINANCE FOR MICRO-ENTERPRISES IN LATVIA
Date
2021-05
Authors
Beizitere, Ilona
Sloka, Biruta
Brence, Ieva
Jermolajeva, Elita
Journal Title
Journal ISSN
Volume Title
Publisher
LLU
Abstract
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.
Description
Keywords
micro-enterprises , requirements for financing , financing refuse , ALTUM , survey , Research Subject Categories::SOCIAL SCIENCES::Business and economics
Citation
Beizitere, I., Sloka, B., Brence, I., Jermolajeva, E. (2021). Challenges on Accessing Finance for Micro-Enterprises in Latvia, Proceedings of 22ND ANNUAL INTERNATIONAL SCIENTIFIC CONFERENCE ECONOMIC SCIENCE FOR RURAL DEVELOPMENT-2021, 13.05.2021, Latvia University of Life Sciences and Technologies.