Today marks eight years since the Social Enterprise Law entered into force, significantly contributing to the development of social entrepreneurship in Latvia. Symbolically, the law’s eighth anniversary marks the transition from eight years of achievements to unlimited opportunities for future growth, reflecting the long-term potential of social entrepreneurship. The law establishes the procedures for granting, registering and supervising social enterprise status, while also providing support mechanisms for businesses whose core mission is to create social impact.
Minister for Welfare Reinis Uzulnieks highlights the importance of the law in the sector’s development:
“These past eight years have demonstrated that social entrepreneurship in Latvia is not merely a support mechanism, but a powerful instrument for improving the well-being of society. The Social Enterprise Law has created a stable foundation for businesses that address socially significant challenges, create jobs and provide services that might otherwise not be available. We see that interest in obtaining social enterprise status remains strong, proving that people are committed to creating meaningful change. The Ministry of Welfare will continue to support social entrepreneurs by providing consultations, funding opportunities and initiatives that strengthen the sector and promote its long-term sustainability.”
Since the Social Enterprise Law entered into force, 404 enterprises have been granted social enterprise status. Currently, 294 social enterprises are actively operating in Latvia.
Of these, 61% support groups affected by significant social challenges, including improving access to education, healthcare, sports and recreation, or social services. Another 20% operate in the field of work integration, creating employment opportunities for people from target groups. Meanwhile, 19% generate long-term positive social impact through activities related to environmental and animal protection or the promotion of cultural diversity.
Social enterprises operate throughout Latvia. Of the 294 active social enterprises, 137 (47%) are located in Riga, while 60 (20%) operate in the Pierīga region. Vidzeme is home to 35 enterprises (12%), Kurzeme and Zemgale each have 24 enterprises (8%), and Latgale has 14 enterprises (5%).
The Social Enterprise Law provides several practical support instruments. These include the possibility for municipalities to grant real estate tax relief, the right of public entities to transfer publicly owned property for free use, and the opportunity for social enterprises to engage volunteers. Social enterprises may also receive compensation for the employer’s mandatory state social insurance contributions paid for employees with disabilities or mental health conditions, as well as one-off wage compensation and reimbursement of employer-paid sick leave benefits.
One of the most widely used support instruments is the grant programme administered by the financial institution ALTUM. It provides grants of up to EUR 40,000 for starting a social enterprise and up to EUR 200,000 for business development. After obtaining social enterprise status, enterprises may apply for a grant by submitting a business plan.
Since the launch of the current ALTUM grant programme in 2024, 112 grant agreements have been signed with social enterprises, amounting to a total of EUR 6.02 million. The average grant awarded is EUR 54,000.
The Ministry of Welfare receives four to six applications each month from businesses seeking social enterprise status. To facilitate the preparation of high-quality business plans, the Ministry provides free consultations for prospective social entrepreneurs.
In 2026, the tradition of organising Social Entrepreneurship Week will continue, aiming to raise awareness of social entrepreneurship and encourage public engagement. Alongside this initiative, additional activities will be implemented to strengthen and further develop Latvia’s social entrepreneurship ecosystem. Information about the planned events will be available on the Ministry of Welfare’s website, social media channels and through the media.
The project “Support for Social Entrepreneurship” is implemented with the support of the European Social Fund Plus (ESF+) under the European Union Cohesion Policy Programme 2021–2027.
