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Description
The goal of the project is to develop the entrepreneurship environment of Vidzeme Planning Region (VPR) and reduce social exclusion by promoting employment and competitiveness opportunities in the region.
Target groups:
- Entrepreneurs
- Business specialists in municipalities
- Vidzeme Entrepreneurship Centre
- Organizations representing entrepreneurs
- Schoolchildren
Activities and results
A.1. Strengthening the capacity of the entrepreneurship centre and local governments of the VPR
- the entrepreneurship support capacity strengthened in 50% of local governments;
- the entrepreneurship support capacity of the VPR enhanced;
- 20 professional employees trained (in the fields of promotion of entrepreneurship and cooperation of local governments);
- 4 co-creation spaces created for young people and other natural persons within the territory of VPR.
A.2. Promoting the Vidzeme Region, strengthening its development level and entrepreneurship.
- 20 enterprises supported with strengthened operational capacity;
- 50% of local governments involved in regional promotion activities;
- 3 foreign trade missions organised;
- 2 visits by foreign sector-specific media organised;
- 3 events of Vidzeme inspiration stories organised.
A.3. Regional mentoring of youth entrepreneurship.
- 5 persons supported for the development of local enterprises;
- 4 youth product idea development marathons organised.
A.4. Support to increase employment and competitiveness, implementing region-specific activities.
- 20 enterprises supported with strengthened operational capacity;
- 5 persons supported for the development of local enterprises;
- 2 new ideas implemented (region-specific solutions) in order to improve the competitiveness and employment of the region:
- 3 product idea development marathons for entrepreneurs in areas defined by the VPR;
- 8 networking events for entrepreneurs, educational and scientific institutions.
Summary of project results
Key Issues and Challenges Addressed by the Project
1. Limited Operational Capacity of Local Enterprises
Small and medium-sized enterprises (SMEs) are vital for regional economies, serving as primary drivers of employment and innovation. However, many SMEs in Latvia struggle with outdated business practices, insufficient access to modern technologies, and limited knowledge of market trends. These constraints reduce their competitiveness, both locally and internationally, and prevent them from scaling operations or diversifying their offerings.
2. Lack of Innovative Products and Services
Economic growth depends on innovation, yet many regions in Latvia lack the resources and infrastructure necessary to foster creativity and development. Enterprises often face difficulties accessing funding for research and development (R&D), resulting in few new products or services entering the market. This stifles growth opportunities and leaves businesses less resilient to changes in consumer demand or economic conditions.
3. High Unemployment and Population Decline
Unemployment rates in rural regions remain higher than in urban areas, leading to the outmigration of working-age individuals seeking better opportunities elsewhere. This demographic shift exacerbates labor shortages in these areas and weakens local economies. Women and young people, in particular, face significant barriers to employment in certain regions, further amplifying disparities.
4. Underdeveloped Support Infrastructure for Entrepreneurs
Business support systems, including municipal services and regional development centers, often lack the capacity to provide tailored assistance to entrepreneurs. This includes mentoring, training, and financial support mechanisms that are essential for fostering successful businesses. Without strong support infrastructure, enterprises struggle to navigate challenges or seize new opportunities.
5. Regional Disparities in Economic Development
Latvia’s regions exhibit stark differences in economic performance and quality of life. Some areas benefit from access to transportation networks, modern infrastructure, and well-developed markets, while others face isolation, insufficient public investment, and limited access to skilled labor. Addressing these disparities is critical for ensuring balanced and sustainable national growth.
6. Fragmented Collaboration Between Stakeholders
Effective economic development requires close collaboration between public institutions, private enterprises, and non-governmental organizations. This limits the ability of stakeholders to pool resources, share knowledge, and implement comprehensive strategies for regional development.
7. Insufficient Capacity for Local and Regional Development
Municipalities and local governments are key players in driving economic growth, yet many lack the expertise and capacity needed to support businesses effectively. Training and capacity-building for development agents are often limited, leaving them underprepared to address complex challenges or implement innovative solutions.
1. Providing Direct Support to Enterprises
The project provided tailored support to SMEs, focusing on improving their operational capacity, competitiveness, and market reach.
Key actions included:
- Organizing specialized training sessions to enhance the skills of business owners and employees.
- Facilitating participation in trade missions, such as a visit to Norway and Iceland, where businesses could explore international markets, exchange knowledge, and build partnerships.
2. Fostering Innovation and Development
To stimulate economic growth, the project supported the creation of new products and services. Activities included:
- Establishing collaborative co-working spaces where entrepreneurs could access resources and networking opportunities.
- Organizing knowledge-sharing and networking events where SMEs could learn about emerging trends and best practices in their industries.
3. Strengthening Business Support Infrastructure
Recognizing the importance of accessible and effective support systems, the project worked to enhance the capacity of municipal and regional business centers. Specific initiatives included:
- Upgrading facilities and technologies in business support centers to improve service delivery.
- Training entrepreneurship specialists to better assist entrepreneurs;
4. Building Partnerships and Collaboration
The project emphasized the importance of collaboration between public and private stakeholders. Activities included:
- Organizing networking events to strengthen ties between regional businesses and public stakeholders.
The project achieved the following key results:
- Strengthened operational capacity of 40 enterprises in Vidzeme, enhancing their ability to compete in local and regional markets.
- Increased satisfaction among entrepreneurs, Vidzeme Planning Region, municipal services and support, fostering a stronger public-private collaboration.
- Development of 14 new products and services tailored to regional needs, contributing to economic diversification.
- Enhancement of business support infrastructure in Vidzeme entrepreneurship center.
- Training of 20 specialists in entrepreneurship promotion and municipal collaboration, increasing capacity at the local level.
Summary of bilateral results
Bilateral partnerships significantly contributed to the project success by facilitating the exchange of knowledge and expertise. Key contributions included knowledge transfer: experts from donor states provided invaluable insights into best practices for local development, which were adapted to the local context.Co-creation of solutions: collaborative efforts resulted in the development of innovative tools and approaches tailored to specific needs. Experts from donor states participated as mentors during a hackathon, fostering creativity and knowledge exchange. For example, concept for an innovative camping house was conceived during the event. The winning team of the hackathon traveled to Norway to collaborate further with experts, advancing the development of their idea.Capacity-building initiatives: meetings with donor state entities during study trips in Elverum improved skills of entrepreneurship specialists from Vidzeme and equipped them with practical strategies to support entrepreneurship more effectively.The strengthened operational capacity of 40 enterprises in Vidzeme was a direct outcome of bilateral cooperation. A trade mission to Norway, organized as part of the partnership,It is planned to continue bilateral cooperation with Elverum municipality in other areas. Not only entrepreneurship.