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Analysis of financial support instruments for social enterprises in Latvia
2021
Licite-Kurbe, L., Latvia Univ. of Life Sciences and Technologies, Jelgava (Latvia) | Gintere, D., Latvia Univ. of Life Sciences and Technologies, Jelgava (Latvia)
Social enterprises have positive effect on sustainable development, and they have become an important instrument for solving social problems (especially in rural areas), as the national and local governments alone cannot solve all such problems. To foster the development of social entrepreneurship, Latvia has introduced several support instruments for social enterprises, which include tax relief, privileged procurement contracts, grants, as well as non-monetary kinds of support. However, social entrepreneurs often point out that support from the national and local governments is insufficient, while the support instruments stipulated in the Social Enterprise Law are not widely used. Therefore, the aim of the research is to analyse national and local government support instruments for social enterprises in Latvia. The research found that the most important financial instrument fostering the development of social entrepreneurship in Latvia is a grant scheme administered by the Ministry of Welfare and the JSC Development Finance Institution Altum, which is available in the range of EUR 5000 to 200 000 for investment and working capital. In the period 2017‒2020, 94 social entrepreneurship projects with a total budget of EUR 6 million were supported, which could be viewed as significant financial support. In contrast, immovable property tax relief, exemption from enterprise income tax (on profits) and relief from this tax for several categories of non-business expenses are considered by social entrepreneurs to be an insignificant kind of support. There is also lack of experience and practice regarding the inclusion of social criteria in public procurement in Latvia.
Afficher plus [+] Moins [-]Age structure of farm owners and managers: problems and the solutions thereto in Latvia
2020
Nipers, A., Latvia Univ. of Life Sciences and Technologies, Jelgava (Latvia) | Pilvere, I., Latvia Univ. of Life Sciences and Technologies, Jelgava (Latvia)
The research paper presents the results of research on the situation and trends in the age structure of farm owners or managers in Latvia. The growing world population and the challenges caused by climate change make farmers reconsider their traditional farming practices. Therefore, scientists believe that the aging of farmers is a major obstacle to the sustainable development of agriculture and rural areas, as evidenced by the age structure of European Union (EU) farmers and other agricultural workers. Generation renewal is crucial for sustainable land management and food production. In 2018, according to statistical data, the share of agriculture, forestry and fisheries in total gross value added in Latvia was only 3.8%. However, these sectors were the main job creators and drivers of economic development in rural areas. Therefore, the aim of the present research is to assess trends in the age structure of farm managers and owners and the policy instruments applied in Latvia. The results of the research show that despite the policy instruments implemented in Latvia after its accession to the EU to support young farmers and promote early retirement of farm owners, the aging process of farm owners and managers occurs relatively fast. The median age of farm owners and managers in Latvia has increased from 53 years in 2009 to 57 years in 2019, which could hinder the development of the agricultural industry and prevent the new challenge of growing global food demand and the negative impacts of climate change from being tackled.
Afficher plus [+] Moins [-]Mechanism of subsidies as an element of state support of livestock sector’s development in Ukraine
2018
Shyian, N., Kharkov V.V. Dokuchaev State Agrarian Univ. (Ukraine)
The article presents results of the analysis of the cattle breeding industry’s development in Ukraine, the main trend of which was the decrease in the number of cattle, including the number of cows. A way to support livestock in the industry using the subsidy mechanism is suggested. This approach is aimed at increasing profitability of the cattle breeding industry output per 1 ha of fodder crops in the farm to profitability of barley production from 1 hectare in the area. The results of the proposed approach show that increasing milk profitability from 1 hectare of fodder crops to barley profitability from 1 hectare can be the basis for maintaining the livestock sector. The use of the livestock productivity factor (cow milk yield) in the proposed methodology makes farms more interested in increasing livestock productivity, which in turn increases the number of subsidies in the industry. In addition, an increase in fodder crops area in the farm has an ecological effect.
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