On 1 April 2024, six years passed since the Social Enterprise Law came into force — a law that has made a significant contribution to the development of social entrepreneurship in Latvia.
The law enables companies whose operations are aimed at achieving socially important goals to obtain social enterprise status.
Its objective is to improve the quality of life in society and promote employment opportunities for groups at risk of social exclusion, while creating a favourable environment for the economic activities of social enterprises.
Over the six years since the law took effect, a total of 275 companies have been granted social enterprise status, and 207 enterprises are currently active.
By type of social impact:
60% of enterprises work to improve the quality of life for population groups affected by socially significant issues (education, health promotion, sports and recreation, social services),
22% create impact by employing representatives of target groups (work integration),
18% generate long-term positive social impact through activities of broad societal importance (environmental and animal protection, cultural diversity, civic engagement).
Social enterprises operate across the entire territory of Latvia. Of the 207 active enterprises,
102 (49%) are located in Riga,
46 (22%) in the Riga metropolitan area,
18 (9%) in Zemgale,
17 (8%) in Kurzeme,
16 (8%) in Vidzeme, and
8 (4%) in Latgale.
Minister of Welfare Uldis Augulis:
“Over these six years, social entrepreneurship has become an integral part of the business environment.
In previous years, with the co-financing of the European Social Fund, 204 social business projects have been supported under the ALTUM grant programme, with a total value of EUR 12.2 million.
The Ministry of Welfare has now launched support for social entrepreneurship also in the new EU funding period 2024–2029, thus ensuring continuity for existing initiatives and new opportunities for emerging ideas.”
Within the framework of the project “Support for Social Entrepreneurship”, the Ministry of Welfare will provide:
advisory and informational support,
awareness-raising and educational activities, and
financial instruments, such as grants, consultations for business plan development, and reimbursement of mandatory state social insurance contributions for employing persons with disabilities or mental disorders.
Support for social enterprises is essential for developing business ideas and achieving social goals.
Grants will be available both for start-ups and enterprise development, tentatively from late Q2 2024.
The Ministry of Welfare and its cooperation partner, ALTUM, are currently developing the terms of the new programme.
Interested parties are invited to follow the latest updates on the websites of the Ministry of Welfare and ALTUM.
To further promote the development and visibility of social entrepreneurship, the Ministry will continue its established tradition of organising the annual Social Entrepreneurship Week, which highlights innovative ideas and increases the visibility of social enterprises.
In addition, seminars and workshops on relevant and practical topics will be held for existing and prospective social entrepreneurs.
This year’s Social Entrepreneurship Week will take place in October, with more detailed information to be announced in the media and social networks.
The European Social Fund Plus (ESF+) project “Support for Social Entrepreneurship” is implemented in accordance with the Cabinet Regulation No. 818 of 19 December 2023 “Implementation rules for Measure 4.3.3.3 ‘Support for Social Entrepreneurship’ under Specific Objective 4.3.3 of the EU Cohesion Policy Programme 2021–2027.”
