Startup community to play a greater role in improving the sector's business environment
The Ministry of Economics will be able to authorise organisations representing startups to implement measures aimed at improving the sector’s business environment, according to amendments conceptually supported by the Saeima. For the draft law to come into force, it must still be approved in two more readings by the Saeima.
Industry representatives assert that a strong core is essential for the development of the innovation ecosystem, stressing that policymakers can provide crucial support to the sector. This includes strengthening access to talent and technological expertise, improving capital availability, expanding support programmes for startups, promoting research commercialisation, and aiming to make Latvia the easiest place in the world to build a global startup. Currently, about 4,000 people are employed in startups in Latvia.
The changes aim to authorise the Ministry of Economics to enter into agreements with organisations representing startups in order to support activities that enhance the commercial environment for these companies.
“The Latvian startup ecosystem has proved itself to be a powerful catalyst for creating innovative products with international potential. A small push can move a big load – with the right support tools, talented entrepreneurs with good ideas can create products that promote Latvia globally and add export revenues to our balance sheet. I encourage us to seize this opportunity to create a globally competitive environment for startups and innovation in Latvia. This includes a modern legal framework, close cooperation between entrepreneurs, universities, and government institutions, as well as targeted state financial support, which will pay off through the creation of new jobs, economic growth, and increased tax revenue,” said Kaspars Briškens, Chair of the Economic, Agricultural, Environmental, and Regional Policy Committee, responsible for the progress of the draft law in the Saeima.
The draft law stipulates that the Cabinet of Ministers will determine the support measures for improving the startup business environment, the conditions for their implementation, and the procedures for carrying them out. It will also define the qualification criteria for the organisations representing startups with whom agreements are signed, and the allocation of applicable business support. The government will also determine the amount of state funding available for implementing the support measures. Additionally, the amendments propose to remove the reference to the de minimis regulation.