Organizational and legal principles of public policy of business support in Latvia and Lithuania

Keywords: competitiveness, business support system, border regions, development of business, stakeholder, legislation, business support organizations, beneficiaries.

Abstract

At least half out of 10 newly created companies cease their activity in the first year, often designating unprofitability as the reason the reason, which cannot be remedied due to the lack of the necessary knowledge and advice. In turn, the state and society at large is interested in securing the stability of bigger companies operations, newly created companies included. Therefore, business support organizations are being formed, the goals of which are to constantly oversee various events in the outer business environment, so as to be able to apply preventative and / or corrective measures for the continued support and growth of entrepreneurship. Of similar importance is also the aspect of employment.

Entrepreneurship has a decisive role in the production of GDP necessary for the development of the Latvian and Lithuanian states, which further materializes in the products and services necessary for the population, the end result of which is the increased well-being of the state and the population. It is for this reason that state and municipalities have to pay closer attention towards the understanding of business development disrupting aspects and towards goal-oriented improvements for the state and municipality support system functionality.

The purpose of the article is to carry out an analysis of business support systems for the purpose of facilitating the effective cooperation of business support organisations in Latvia and Lithuania by analytically evaluating Latvian and Lithuanian business support organisation activities .

To reach the goal, the following most important objectives were set:

1)      to compile and analyze the relevant environment for business support in Latvia and Lithuania;

2)      to identify active BS organisations in Latvia and Lithuania and analyze their activities and results of their activities.

The scientific novelty is to to compile and analyze the relevant environment for business support in Latvia and Lithuania.

Conclusions. In comparative analysis, when comparing the Latvian and Lithuanian national laws and strategic planning documents that regulate the organization, financing and impact assessment of business support at the national level, which are not regulated by EU legislation or obligations, it can be concluded that, unlike Latvian legislation, Lithuanian legislation and planning documents clearly indicate the priorities for business support, the target groups of beneficiaries, types of support (materials and intangible assets) and support providers (municipalities or the state), as well as a clear description of the organization and evaluation of assistance. The Latvian legislation (with the exception of the New Enterprise Assistance Law and the laws that determine the granting and monitoring of EU assistance) does not define business support, its beneficiaries, possible types and size of support, the necessity and procedures for monitoring and impact, etc.

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PDF Downloads: 33
Published
2021-12-29
How to Cite
Riashchenko , V., Rivza , B., & Gryshova  , I. (2021). Organizational and legal principles of public policy of business support in Latvia and Lithuania. Scientific Papers of the Legislation Institute of the Verkhovna Rada of Ukraine, (6), 122-132. https://doi.org/10.32886/instzak.2021.06.13