Development of MSMEs [micro, small and medium enterprises] in the regions of Latvia
2011
Zvirbule-Berzina, A., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics. Dept. of Business and Management | Gruzina, Z., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics. Dept. of Business and Management
MSMEs have become significant in the global economy creating most of employment, value added and fostering the economic growth. According to statistics, around 99% of businesses in the EU and Latvia are micro, small or medium. MSMEs have no limitation in type of business - it includes small family-run business, homemade production, agriculture, services and companies producing food, beverages, textile and others. The research aim is to analyse the role and development of MSMEs in the regions of Latvia. Research first describes MSME classification in the EU and Latvia and number of enterprises in each size unit. Then the research analyses regional distribution of MSMEs and its impact on the GDP and employment in 6 statistical regions of Latvia- Riga, Pierīga, Kurzeme, Zemgale, Vidzeme, and Latgale. In all European countries MSMEs are the main source of employment - in the EU-27 countries MSMEs employ 67.4% of all employees and contribute 57.9% to the total value added. As the research shows, in the regions of Latvia increase in number of MSMEs per 1000 inhabitants will most likely mean increase in GDP per capita. On the contrary, the increase in number of MSMEs per 1000 inhabitants will most likely not affect or have a little affect on employment in regions.
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