Regional Development Problems of Small and Medium-Sized Enterprises in Latvia

Despite the achievements attained in recent years in the economic development of Latvia, until now Latvia’s regions demonstrate uneven development, which negatively impacts the development of small business. The authors of the article, based on the results of the research conducted by the staff of the National Regional Development Agency, the Ministry of Economics, as well as the results of research conducted with the participation of the authors of this article, present an analysis of the causes hampering the development of small enterprises in the regions of Latvia. The main factors hampering their development are: lack of qualified staff, inability of the educational system to adequately meet the requirements of particular branches, and insufficiently rapid introduction of up-to-date technologies. Solution of these problems has to contribute to the development of the regional innovative environment. The development of regional higher educational establishments in Latvia will contribute to the enhancement of competitiveness of regional economies with a focus on science-intensive enterprises. In addition to this it is essential to increase state support to the development of venture capital and creation of regional risk capital funds for financing small and medium-sized entrepreneurs