Today, 1 April, marks seven years since the Social Enterprise Law came into force, providing an important contribution to the development of social entrepreneurship in Latvia.
The law defines the criteria for obtaining social enterprise status for companies that have set social objectives as their primary mission. It establishes the procedure for acquiring and registering the status, sets out supervision rules, and specifies support mechanisms available to social enterprises.
Minister of Welfare Reinis Uzulnieks:
“Over the past seven years, social entrepreneurship has gained an important role and visibility in Latvia. In recent years, society has developed a stronger understanding of the capacity of social entrepreneurship to address social issues. Social enterprises not only create economic value but also have a positive impact on society by providing jobs and support to various social groups.
Moreover, enterprises operating with a social mission can inspire other entrepreneurs by demonstrating that it is possible to combine profit-making with the achievement of social goals.”
Since the law came into force, a total of 341 enterprises have been granted social enterprise status, of which 253 are currently active.
By type of social impact:
62% of enterprises support groups affected by socially significant issues (education, healthcare, sports and recreation, social services), improving their quality of life;
21% create social impact by employing members of target groups (work integration);
17% create lasting positive social impact through activities beneficial to society as a whole (environmental and animal protection, cultural diversity).
Social enterprises operate across all regions of Latvia.
Of the 253 enterprises, the largest share – 115 enterprises (45%) – are located in Riga, and 67 enterprises (27%) operate in the Riga metropolitan area.
In other regions: 21 enterprises (8%) are located in Zemgale, 18 (7%) in Vidzeme, 17 (7%) in Kurzeme, and 15 (6%) in Latgale.
The Social Enterprise Law establishes several practical support instruments.
For example:
Municipalities may grant real estate tax relief;
Public authorities may provide property for free use;
Social enterprises may engage volunteers.
They may also receive compensation for the employer’s share of mandatory state social insurance contributions for employees with disabilities or mental disorders, a one-time salary compensation, and reimbursement for sickness benefits paid by the employer.
A particularly popular support instrument is the grant programme available through the development finance institution ALTUM –
up to EUR 40,000 for starting a social enterprise,
and up to EUR 200,000 for business development (for enterprises at least two years old).
A social enterprise may apply for a grant once it has obtained official status. As in any business, grant applicants must prepare a business plan describing planned activities and demonstrating long-term viability.
Under the new ALTUM grant programme, available since 2024, 50 contracts have been signed so far, with an average grant amount of EUR 62,000.
Interest in obtaining social enterprise status remains consistently high – each month, the Ministry of Welfare receives four to six applications from potential social enterprises.
Support for social enterprises is essential to help develop social business ideas and implement social goals in practice.
To facilitate the preparation of high-quality business plans, the Ministry of Welfare will offer free consultations for social entrepreneurs in the second half of 2025.
To further promote social entrepreneurship and raise awareness, the Ministry will also continue the tradition of Social Entrepreneurship Week in October 2025, highlighting social business ideas and increasing visibility.
Information about upcoming support activities in the second half of 2025 will be published on the Ministry of Welfare’s website, social media, and in the media.
The European Social Fund Plus project “Support for Social Entrepreneurship” is implemented in accordance with Cabinet of Ministers Regulation No. 818 of 19 December 2023:
“Implementation rules for measure 4.3.3.3. “Support for Social Entrepreneurship” under the EU Cohesion Policy Programme 2021–2027, Specific Objective 4.3.3 ‘Improving access to employment and activation measures for all jobseekers, in particular young people – especially through the Youth Guarantee – long-term unemployed and disadvantaged groups in the labour market, as well as promoting self-employment and the social economy.’”
