Social entrepreneurship in Latvia and its challenges

Social enterprises, as an interdisciplinary form of business, often face problems that traditional enterprises and civil society organizations have already overcome: lack of legal framework, complex business models, business identity problems, lack of public awareness, lack of visibility and difficulty in accessing investment markets. The name ‘social entrepreneurship’ makes it clear that it is not easy to have a business oriented towards a social goal, because ‘social’ implies that the business is directed to the goal of reducing social problems and enhancing the quality of life, which, besides being expensive, is also a complex process. The purpose of the article is to reflect the challenges faced by representatives of social entrepreneurship in Latvia: before April 1, 2018, when this type of business was non-profit, and after, when the opportunity was given to establish a profit-making social enterprise. In order to achieve the goal, following tasks are set — to provide a theoretical explanation of social entrepreneurship, as well as, with the help of empirically obtained information, to reveal the challenges faced by representatives of social entrepreneurship in Latvia. According to interviewed informants, the main challenges for social entrepreneurs in Latvia are the lack of qualified employees, institutional cooperation and funding, which would allow organizations to effectively carry out their business; in addition, difficulties are caused by situations when financing is too complex or difficult to access, and social entrepreneurship lacks public support. Rather often, social entrepreneurs lack knowledge about business risks and how to plan their business in the long term.