Support diversification for micro, small and medium size enterprises in Zemgale region [Latvia]
2012
Gruzina, Z., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics | Zvirbule-Berzina, A., Latvia Univ. of Agriculture, Jelgava (Latvia). Faculty of Economics
The paper presents the concept of support diversification for development of micro, small and medium size enterprises (MSMEs) in Zemgale region, Latvia. Financial, advisory, and educational support is crucial for the establishment and development of micro, small and medium size enterprises worldwide. The World Bank, the European Commission, and governments have all showed an increased interest in financing and supporting MSMEs. The research is focused on discussion and classification of support available for the establishment, and growth and development of micro, small and medium size enterprises in Latvia. Cluster analysis groups 22 local municipalities of Zemgale region into 4 clusters, and the authors suggest to diverse support according to specific needs of region and enterprises in each cluster. In the clusters that link territories with low number of micro enterprises per 1000 capita, it is necessary to stimulate the establishment of new micro enterprises through programmes like Promotional Programmes Office ALTUM Start Programme, Micro Lending Programmes as well as education and training. In contrast, in clusters with high number of micro enterprises per 1000 capita but low number of small and medium size enterprises, it is important to stimulate the growth of micro enterprises into small, medium and large enterprises through Competitiveness and SME Growth Loan programmes.
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