Financing SMEs and Entrepreneurs 2026: Latvia
Table of contents
Latvia's economy has weathered recent shocks and is regaining growth momentum. In 2023, geopolitical uncertainty, high prices and rising interest rates led to a 0.9% GDP contraction, with declines in private consumption, exports and imports offset by rises in government spending and investment. Inflation eased in 2024, but the economy contracted in H1 before expanding in H2, resulting in flat annual GDP. Private consumption and exports grew modestly; government consumption and investment fell.
In Latvia 99.8% of all individual merchants and commercial companies are SMEs and 94.1% of SMEs were micro-sized. In the Latvian ‘non-financial business economy’, SMEs account for 69.8% of value-added and 76.2% of employment, significantly higher than the respective EU averages of 53.1% and 65%.
In 2024, the interest rate for SMEs stood at 7.46%, approximately 20% higher than in 2023, when the rate was 6.21%. In contrast, the interest rate for large firms in 2024 was 6.05%, reflecting a 3.6% increase compared to 2023, when it stood at 5.84%. The interest rate spread in 2024 was 1.41 percentage points, compared to 0.37 percentage points in 2023. Consequently, the spread widened by 281.08%. This increase in interest rates for SMEs is primarily attributable to the active participation in lending by medium- and large-sized domestic banks, which typically apply higher rates than their major international counterparts. Overall, the situation should be regarded positively, as the involvement of these mid-tier and smaller banks has significantly enhanced access to financing for small and medium-sized enterprises, thereby supporting their growth and competitiveness.
The number of SME insolvencies has fallen sharply since 2009, from 2 202 cases to a mere 302 in 2022. This was followed by a moderate decline, with insolvencies decreasing to 242 in 2024, showing improved financial discipline and effective state support.
The establishment of Altum in 2014 as a national development finance institution has significantly enhanced SME access to a comprehensive range of financial instruments, including loans, guarantees, and equity, thereby addressing market failures through the effective utilisation of EU Structural Funds. Key initiatives include:
Altum’s credit guarantee programme, operational since 2016 and backed by over 80 million EUR in EU funding, has issued 440 guarantees worth 24.7 million EUR by October 2025, enabling SMEs with limited collateral to secure up to 80% of loan principal.
In 2024, Altum’s export credit guarantees were issued in the amount of EUR 3.88 million supporting a total of 25 companies. In 2025, export credit guarantees were issued in the amount of EUR 5.26 million, with the total number of supported companies reaching 33.Energy efficiency loans with capital rebate for businesses: Under the Recovery and Resilience Facility, 53 million EUR has been deployed by Q3 2025 to 487 firms, facilitating energy upgrades and renewable adoption projected to cut CO₂ emissions by 14,527 tonnes annually.
SME Growth Loans: Continued across EU programming periods, SME growth loans have approved 54.1 million EUR for 209 projects by September 2023, with an additional 12.62 million EUR contracted for 37 firms in 2021–2027, leveraging 6.8 million EUR in private funds.
Start-up and microloans, loans for micro companies: The start-up loan programme, active since 2016, has disbursed 18.3 million EUR across 750 loans and 3.1 million EUR in 227 microloans by September 2023; the 2021–2027 measure has supported 515 firms with 24.78 million EUR, including 299 new enterprises.
Investment fund (state funded): The 292,06 million EUR Investment Fund, launched in 2021, offers loans with up to 30% capital rebates for projects over 10 million EUR.
So far, within the first three rounds of project application selection, 26 projects have been approved for funding, with a total value of more than EUR 641.7 million and applicable capital rebates amounting to EUR 166.5 million. The projects are expected to achieve specific indicators: an increase in exports of at least EUR 329.5 million, the creation of 1 226 new well-paid jobs, and investments in research and development exceeding EUR 18.2 million.
From November 2025 to March 2026, the fourth selection round took place with available funding of EUR 64 million. A total of 42 applications were received, with a combined investment volume of EUR 848 million and requested capital rebates amounting to EUR 247.9 million. Of these, 4 projects were military projects, with a total investment volume of EUR 117.4 million and requested capital rebates amounting to EUR 34.8 million.
In line with its 2023 initiative to create and fund the Baltic SME IPO Fund, the Latvian government announced on 29 September 2025 that ALTUM, partnering with Lithuania’s ILTE, has launched the Baltic Capital Markets Acceleration Fund “1 Asset Management”, the region’s first such initiative. Valued at over 50 million EUR, the fund will support Baltic firms preparing for IPOs, accelerate local capital market growth, and benefit from private investments by “1 Asset Management” and “Baltic Partners”.
Note: * The most recent available data on bankruptcies pertain to 2023 and encompass all enterprises, without separately distinguishing SMEs
The Latvian economy has successfully navigated the shocks of recent years and is currently growing again.
Although the pace of inflation stabilised, the adverse external environment caused the economy to continue contracting during first half of 2024, nevertheless, GDP expanded in the second half of the year. On an annual basis, GDP remained unchanged from the previous year. Private consumption and exports recorded modest growth, whilst government consumption and investment declined.
In 2025, a gradual recovery in economic activity is observed. In the first half of the year, GDP rose by 1.3% compared with the corresponding period of the previous year, driven largely by a sharp increase in investment. The upturn in activity has been supported both by somewhat faster growth in Latvia’s principal trading partners and by government measures to stimulate the economy, particularly in the areas of lending and investment. This trend continued throughout 2025, with GDP increasing by 2.1%, confirming that the Latvian economy has managed to overcome the upheavals of recent years.
Private consumption is growing slowly, notwithstanding the rise in real wages. Consumer caution continues to be influenced by high price levels, inflation expectations, and uncertainty surrounding the geopolitical situation. In 2024, as inflation stabilised and households’ real incomes increased, private consumption edged up by 0.1%. In the first half of 2025, private consumption fell by 0.4% compared with the corresponding period of the previous year.
Investment activity in the Latvian economy is significantly affected by the geopolitical situation, the ability of financing and production resources, and other external and domestic factors. In 2024, investment fell by 7%, largely owing to a weakening in private investment. Thanks both to the accelerated absorption of EU funds and to the revitalisation of private sector lending, investment in the first half of 2025 increased by 7.9% compared with the corresponding period of the previous year. At the same time the accumulated foreign direct investment (FDI) in Latvia continues to grow, confirming the attractiveness of the investment environment. At the end of 2024, the total amount of accumulated FDI in Latvia exceeded more than EUR 26 billion, which is approximately 65% of the country’s GDP. As well as investor confidence in Latvia, according to the FICIL “Sentiment Index 2024” data, has improved.
Inflation has been most significantly influenced by rising global prices for energy and food. In December 2024, consumer prices were 3.3% higher than in December of the previous year. The overall annual price increase was driven substantially by a 6.3% rise in services prices and a 5.5% increase in the prices of food and non-alcoholic beverages. By contrast, average annual inflation in 2024 was markedly lower than in 2023, standing at 1.3%. In 2025 overall, average annual inflation has been higher than in 2024, reaching 3.4% by September.
Owing to the unfavourable external environment, labour-market activity edged down slightly in 2024. The number of employed persons fell by 0.8% (equivalent to 6 800 individuals), while the unemployment rate rose by 0.4 percentage points to 6.9%. The decline in employment was driven largely by both the economic situation and supply-side factors in the labour market, including a reduction in the working-age population and an overall contraction in labour supply.
As economic activity picked up, labour-market conditions improved in 2025. In the second quarter of 2025, the number of employed persons increased by 0.8% (6 900 individuals) compared with the second quarter of 2024. The unemployment rate fell to 6.7% in the second quarter of 2025, 0.2 percentage points lower than in the corresponding quarter of 2024.
Average monthly gross wages continued to rise. In 2024, the average net wage stood at EUR1221, representing 72.4% of the gross wage, and increased by 9% year-on-year, outpacing the rise in consumer prices. Real net wage growth, adjusted for inflation, amounted to 7.6%.
In the second quarter of 2025, the national average gross monthly wage was EUR1 808. Compared with the second quarter of 2024, average monthly remuneration rose by EUR 137, or 8.2%. Wage growth was somewhat stronger in the private sector. Real net wage growth, adjusted for inflation, stood at 6.6%.
According to Eurostat data, in 2023, there were 146 256 economically active individual merchants and commercial companies in Latvia. 99.8% of these firms were SMEs and 94.1% of SMEs were micro-sized. Only 0.2% of firms in Latvia in 2023 were large firms (see Table 2.)
Note: **The most recent available data on the distribution of firms pertains to 2023.
Data: Eurostat, SBS – main indicators
In 2023, there were approximately 146,014 SMEs operating in Latvia, with the vast majority of these (137 385) being micro-sized enterprises that employed between zero and nine people. Additionally, there were around 7118 small businesses, which had between 10 and 49 employees, and 1 450 medium-sized businesses.
In 2023, there were approximately 516 348 people employed by SMEs in Latvia. Micro-sized enterprises, who employ between zero and nine people, employed 223,557 people in this year, small-sized businesses (10-49 employees) employed 144 749 people, while medium ones (50-249 employees) employed around 148 042 people.
In the Latvian ‘non-financial business economy’, SMEs account for 69.8% of value-added and 76.2% of employment, significantly higher than the respective EU averages of 53.1% and 65%.
Latvia ranks 16th in the EIF SME Access to finance index (August 2023 update), marking a significant six-place improvement compared to 22nd place in 2021. This enhanced performance is largely attributable to a strong score in the “Equity” subindex, where Latvia ranks 5th. The capitalization of SMEs has been positively influenced by the 2018 Enterprise Income Tax Law reform, which encouraged profit reinvestment.
Data from recent years indicate a significant increase in activity regarding new SME lending. In 2024, the volume of new loans issued to the SME sector reached EUR 1 690 million, representing both a short-term increase compared to 2023 and a long-term rise – for instance, in 2020, this figure was only EUR 855 million. Furthermore, the role of SMEs in the total credit flow maintains a high share, as they accounted for 75.28% of all newly issued business loans in the country in 2024.
An analysis of the loan portfolio structure reveals a continuing trend in favor of long-term financing. In 2024, the outstanding balance of long-term loans to SMEs reached EUR 3 636 million, continuing the upward trajectory observed since 2021. Meanwhile, the share of short-term loans has remained steady over the past four years, reaching a 21.3% share in 2024, with an outstanding short-term credit balance of EUR 984 million.
Financing costs have risen significantly in recent years, driven both by the general increase in interest rates across Europe and the fact that small and medium-sized banks, which offer higher interest rates than large banks, have begun to show substantial activity in the lending market. The average interest rate for SME loans in Latvia reached 7.46% in 2024, which is considerably higher than the 4.0% recorded in 2022. Additionally, the interest rate spread between SMEs and large enterprises increased to 1.41% in 2024, indicating tighter conditions specifically for smaller-scale businesses.
However, despite more expensive credit resources, portfolio quality remains at a historically high level. The share of non-performing loans in the SME sector dropped to a record low of 0.51% in 2024, reflecting very high payment discipline. The number of corporate insolvency proceedings also remains relatively low, reaching 265 cases in 2023.
In addition to traditional bank loans, Latvian SMEs are increasingly utilizing alternative types of financing. The volume of leasing and hire purchase agreements grew to EUR 1 122 million in 2024, while the venture and growth capital market has experienced the most rapid growth, increasing from EUR 38 million in 2015 to EUR 278.4 million in 2024. These data confirm the diversification of Latvia's business environment and its ability to attract various types of capital for growth.
The total volume of interest payments by NFCs reached its peak in mid-2024 and subsequently declined in line with the fall in EURIBOR. Nevertheless, the incorporation of lower reference rates into loan pricing is occurring slowly and gradually. The overall debt-servicing capacity of NFCs weakened slightly in 2024 but remained at a sound level: earnings before interest and taxes were 6.9 times greater than interest payments. Debt-servicing capacity in the transport and storage sector deteriorated markedly, reaching a very low level (1.59 times), whereas in the real estate operations sector the ratio improved marginally alongside rising profitability (2.59 times). It should be noted that, according to a detailed analysis of the financial position of borrowers in the transport sector, their solvency is better than the sector average. In the remaining sectors where the interest coverage ratio declined, debt-servicing capacity continues to be adequate. In 2025, the debt-servicing burden is expected to ease further due to the gradual incorporation of lower reference rates.
The dynamics of lending to non-financial corporation (NFCs) are still driven by the interaction between supply and demand factors. Lending policies of the largest credit institutions are still conservative concerning NFCs. Weak competition in the market of lending to SMEs is one of the factors that affect lending conditions (e.g. loan maturities, prices, collateral requirements). Although NFC lending is currently being significantly driven by medium-sized and small banks, the majority of which are domestically owned. Although the loans issued by these banks still account for a relatively small share of the banking sector’s total domestic NFC credit portfolio (20% as of March 2025), their contribution to lending growth is presently greater than that of the five largest banks, all of which are foreign-owned.
In 2024, the interest rate for SMEs stood at 7.46%, approximately 20% higher than in 2023, when the rate was 6.21%. In contrast, the interest rate for large firms in 2024 was 6.05%, reflecting a 3.6% increase compared to 2023, when it stood at 5.84%. The interest rate spread in 2024 was 1.41 percentage points, compared to 0.37 percentage points in 2023. Consequently, the spread widened by 281.08%. This increase in interest rates for SMEs is primarily attributable to the active participation in lending by medium- and large-sized domestic banks, which typically apply higher rates than their major international counterparts. Overall, the situation should be regarded positively, as the involvement of these mid-tier and smaller banks has significantly enhanced access to financing for small and medium-sized enterprises, thereby supporting their growth and competitiveness.
The Latvian government, in pursuit of the initiative launched in 2023 to establish and finance the Baltic Small and Medium-Sized Enterprise Initial Public Offering Fund, announced on 29 September 2025 that ALTUM, in partnership with the Lithuanian development bank ILTE, had launched the Baltic Capital Markets Acceleration Fund “1 Asset Management” – the first such regional initiative. With an initial value exceeding €50 million, the fund will provide long-term support to Baltic companies preparing for initial public offerings (IPOs) and will help accelerate the development of local capital markets. The initiative is further bolstered by private-sector participation, including investments from the asset management firm “1 Asset Management” and the financial advisory firm “Baltic Partners”. Latvian SMEs also have access to the BaltCap Growth Fund, which invests in fast-growing companies with proven and profitable business models. The BaltCap Growth Fund commits up to EUR 10 million to support company expansion through measures such as increasing production capacity, entering new markets, or acquiring competitors, while tailoring solutions to the specific needs of each enterprise.
Of course, business angels represent one of the sources of financing for SMEs. In Latvia, several investor associations, forums, and organisations are active, such as the Latvian Private Investors Association, the Latvian Business Angel Network, and various contact exchanges, during which those seeking funding present their business ideas and endeavour to persuade potential investors of the project's viability and anticipated returns.
In Latvia, leasing and factoring have established themselves as standard financial instruments, widely offered by both major commercial banks and a range of non-bank lenders. Leasing is traditionally used for the acquisition of transport and equipment, and data indicate moderate but steady growth in recent years: following a decline in 2021 (EUR 874 million), the volume of leasing and hire purchases has increased, reaching EUR 1 122 million in 2024. Meanwhile, factoring, which serves cash flow management and the acceleration of invoice payments, has shown positive dynamics after slight fluctuations during the pandemic period, reaching EUR 194 million in 2024. Although both services are essential for business support, the volume of the leasing market in Latvia continues to significantly exceed that of the factoring market, reflecting a corporate focus on long-term investment in fixed assets.
In 2024, 9320 new companies were registered in Latvia - 548 more than in 2023. In 7843 companies were liquidated in 2023, then in 2024, 9432 companies were liquidated, which is 20.3% more.
On the policy side, substantial progress has been made to facilitate SME access to finance. In 2014, Altum was established. It is a one-stop-shop national development finance institution where SMEs can apply for European, national and local aid in the form of financial instruments (loans, guarantees, equity instruments, etc.). Latvia has been very active in using available EU Structural Funds to prevent market failures in the financial sector and ensure that SMEs get the required investments so they can grow. A variety of financial instruments have been created to facilitate the availability of financial resources in all stages of business development, especially for starting a business.
The financial instruments implemented by the Altum (directly and indirectly):
Equity instruments: pre-seed, seed and start-up capital, venture capital, and expansion capital.
Quasi-equity instruments: mezzanine loans.
Debt instruments: guarantees (loan guarantees, short-term export credit guarantees), start-up loans, microloans, SME loans, FRS loans, loans for rural development/farmers.
Credit guarantees support serves as additional collateral for entrepreneurs’ bank obligations. Guarantees are issued to companies that lack sufficient collateral to receive a loan or to obtain financing in the required amount but have a transparent financial history and positive creditworthiness. The guarantee covers up to 80% of the principal loan amount.
The support program includes ERDF funding from the EU funds 2014–2020 programming period amounting to EUR 49.8 million for the support of small and medium-sized enterprises, and repaid funding from previous EU fund periods amounting to EUR 3.51 million for the support of large enterprises. At the same time, additional funding of EUR 29.6 million is planned for the issuance of guarantees from 2024 under the EU Cohesion Policy Program for 2021–2027.
The program has been operating since June 2016. From 2024 until October 31, 2025, 440 guarantees have been issued in the amount of EUR 24.7 million.
Portfolio guarantees were developed in 2017 to improve the availability of financial resources for SMEs in Latvia. They were intended to contribute to the creation of new companies, expand existing activities and increase lending rates (average amount of guarantees issued EUR 6 to EUR 10 million per year).
Guarantees provide business owners with the opportunity to obtain investment and working capital loans as well as financial leasing with a term from one to 10 years, in amounts up to EUR 250,000. For issuing guarantees, EUR 14.2 million of repaid public funding is available. In 2025, the program supported 125 companies for a total amount of EUR 1.37 million.
In 2025, Latvia developed a unified guarantee methodology, submitted for approval to the European Commission, which enables the extension of the guarantee instrument to mid-cap and large enterprises.
The main target of export credit guarantees is to reduce political and commercial risks related to export transactions. Due to the uncertain economic conditions from April 2020 to December 2022 export credit guarantees are available for export transactions independently of the country of the debtor (with a deferred period until 2 years).
From the beginning of the current export credit guarantee programme in 2017 until 31 December 2022, export credit guarantees have been issued in the amount of EUR 35.8 million (declared export amount – around EUR 163 million), and 159 companies have been supported.
Venture Capital Investments are focused on companies with strong growth and scalability potential, as well as seed capital for early-stage businesses to develop ideas or create products. The financing amount and investor involvement depends on whether the company is a new or already established market player. Support is provided not only as funding, but also through active investor engagement in business development, accelerating growth and increasing company value.
To continue the support introduced during the 2014–2020 programming period for rapidly growing companies, the Cabinet of Ministers approved on 15 August 2023 a new EU Structural Funds support programme for venture capital investments in business, with a total budget of EUR 80.6 million.
In September 2024, the procurement procedure was completed, selecting three venture capital fund managers for start-ups and one fund manager for growth-stage companies, and the process of concluding contracts with the selected fund managers has now commenced.
Contracts with start-up venture capital fund managers have been concluded with the consortiums BUILDIT, BADideas.fund, and VNTRS Consulting AB. Over the next five years, these funds will make investments in promising and viable pre-seed and seed-stage companies. The total public financing amounts to EUR 55.8 million from ERDF resources. Each fund will have a total size of EUR 20.67 million, of which 10% will consist of private investor capital.
For growth-stage venture capital, the contract has been signed with FlyCap AIFP SIA. Over the next five years, the fund will invest a total public financing amount of EUR 24.8 million from ERDF resources, additionally attracting at least 40% private co-investment, resulting in a total fund size of EUR 41.3 million. The investments will target promising, viable, export-oriented growth-stage companies, promoting the creation of new jobs, increasing tax revenues, and overall contributing to the development of the Latvian economy.
In 2025, a total of 15 companies received support, including 8 start-ups, which obtained EUR 4.46 million in public funding and attracted EUR 8.9 million in private investment.
Loans with a capital rebate are available for companies to improve the energy efficiency of their operations and to switch to renewable energy technologies in heating and production processes. The financial instrument is implemented by Altum under the Recovery and Resilience Facility (RRF) Plan investment 1.2.1.2.i.1 “Energy efficiency in business”.
Supported investment directions:
Energy efficiency – replacement or modernisation of existing production equipment, lighting, heating, cooling, ventilation and steam systems to reduce energy consumption.
Renewable energy – installation of technologies for heat or power generation for self-consumption, such as solar panels, biomass boilers, or heat pumps.
Sustainable transport – acquisition or lease of zero-emission or low-emission vehicles for company operations and related charging or refuelling infrastructure.
Energy management systems – introduction of digital monitoring, control and optimisation systems.
Energy audits and technical documentation – preparation of energy audits, feasibility studies and project documentation necessary for the investment.
Since the launch of the investment, by the end of Q3 2025, a total of EUR 53 million in RRF financing has been invested, supporting 487 companies that plan to achieve an annual reduction of greenhouse gas emissions by 14, 527 tonnes of CO₂ equivalent. By investing in these measures, companies reduce their energy consumption, lower emissions, and strengthen their competitiveness, contributing to Latvia’s transition towards climate neutrality.
Within the SME Loan Programme, since being launched at the end of 2021, Measure 3.1.1.7 “Loans for the Development of Micro, Small and Medium-sized Economic Operators” and Measure 13.1.1.1 “Loans for the Promotion of Development of Micro, Small and Medium-sized Economic Operators” have provided financing for the implementation of SME projects, including loans aimed at ensuring business sustainability. As of 30 September 2023, a total of 209 applications has been approved in the amount of EUR 54.1 million.
To continue the support launched in the 2014–2020 programming period and to strengthen business sustainability, this measure is also implemented in the 2021–2027 planning period, during which support has already been provided to 37 companies, concluding contracts for a total amount of EUR 12.62 million and attracting EUR 6.8 million in private investments. It is planned that, in total, support will be provided to 50 economic operators.
The Start-up Loan Programme for the 2014–2020 EU funds programming period is implemented within the Operational Programme “Growth and Employment”, under Specific Objective 3.1.1 “To promote the establishment and development of SMEs, especially in manufacturing and RIS3 priority sectors”, Measure 3.1.1.4 “Microcrediting and Loans for Start-ups”. Start-ups may receive loans directly in the form of financial instruments. The Start-up Loan Programme is an important form of state support for companies in the early stages of development.
Since June 2016, it has been possible to receive a start-up loan for the implementation of viable business projects – for investments and working capital. Loans are issued to businesses registered in the Commercial Register for no longer than five years (from the date of establishment). Start-up loans are a vital tool for new entrepreneurs, providing access to financing necessary for implementing promising and viable business projects, especially for those economic operators who, due to insufficient collateral, limited operating history, credit history, net revenue flow, or existing debt obligations, are unable to attract financing from financial market participants (commercial banks, private investors) in the required amount.
By 30 September 2023, a total of 750 start-up loans had been issued in the amount of EUR 18.3 million, along with 227 microloans in the amount of EUR 3.1 million. To ensure continuity of support, the programme “Start-up and Growth Loans” is also planned for the 2021–2027 EU programming period (hereinafter – Measure 1.2.3.3). On 19 September 2023, the Cabinet of Ministers approved amendments to Cabinet Regulation No. 328 of 31 May 2016 “Regulations on Microloans, Start-up and Growth Loans”, which provide for continuation of support for investments and working capital. The maximum loan amount is EUR 250,000, with a loan term of up to 15 years. Under measure 1.2.3.3, a total of 515 companies has received support amounting to EUR 24.78 million, of which 299 are newly established enterprises.
To ensure access to finance for large investment projects aimed at economic recovery following the Covid-19 crisis, on 6 July 2021 the Cabinet of Ministers approved Regulation No. 503 “Regulations on Loans with Capital Discount for Investment Projects to Promote Competitiveness of Merchants” (hereinafter – the Investment Fund). The current available funding in the Investment Fund amounts to EUR 282.56 million. The objective of the Investment Fund is to promote new investment inflow for business expansion, encouraging entrepreneurs to carry out new investments and thereby create an added-value chain throughout the national economy. To ensure support accessibility for scalable investment projects, the draft regulations “Regulations on Loans with Capital Discount for the Support of Large Investment Projects” are intended to provide support under similar conditions and procedures as specified in Regulation No. 503 for the third selection round, thereby ensuring uniform conditions for all subsequent rounds announced by the Investment and Development Agency of Latvia (LIAA). At the same time, a broader range of eligible sectors is envisaged, allowing support for large-scale investment projects in various industries, including those related to primary agricultural production and defence-related investments, as well as refining the criteria for the application of the capital discount. Since 2022, applications have been open for the large-scale investment support programme intended for development projects starting from EUR 10 million. When a company achieves the project objectives and meets specific criteria, it may qualify for a loan with a capital discount of up to 30%, meaning that the respective part of the loan granted by Altum can be written off. Since October 2023, companies have also been able to apply for additional loans of up to EUR 30 million (excluding the capital discount amount).
Source: See Table 1
References
Latvian Macroeconomic Review (October 2025). Available at: https://www.em.gov.lv/lv/media/22397/download?attachment.
Eurostat. Structural business statistics. Available at: https://ec.europa.eu/eurostat/web/structural-business-statistics/database.
The 2022 EIF SME Access to Finance Index - August 2023 update. Available at: https://www.eif.org/news_centre/publications/eif_working_paper_2023_92.pdf.
Financial Stability Report. Available at: https://datnes.latvijasbanka.lv/fsp/FSP_2025_LV.pdf.
LURSOFT Statistics: Number of entities registered and liquidated in the registers of the Enterprise Register of the Republic of Latvia. Available at: https://www.lursoft.lv/lursoft_statistika/?&id=2.
The Anatomy of Bank Interest Rates: How Costly Is Borrowing for Enterprises and What Has Changed in Recent Years. Available at: https://www.makroekonomika.lv/raksti/banku-procentu-likmju-anatomija-cik-dargi-ir-uznemumiem-aiznemties-un-kas-mainijas-pedejos.
IPO fund. Available at: https://www.altum.lv/en/services/enterprises/venture-capital-and-private-equity/ipo-fund/.
BaltCap Growth Fund. Available at: https://www.baltcap.com/.
Latvian private equity and venture capital association. Available at: https://www.lvca.lv/lv.
Latvian Business Angel Network. Available at: https://www.latban.lv/.
FICIL “Sentiment Index 2024” https://www.ficil.lv/wp-content/uploads/2025/05/FICIL-Sentiment-Index-report_2024-1.pdf
Latvian Macroeconomic Review (April 2026). Available at: https://www.em.gov.lv/lv/media/23879/download?attachment.
This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the Member countries of the OECD.
This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such data by the OECD is without prejudice to the status of the Golan Heights, East Jerusalem and Israeli settlements in the West Bank under the terms of international law.
Note by the Republic of Türkiye
The information in this document with reference to “Cyprus” relates to the southern part of the Island. There is no single authority representing both Turkish and Greek Cypriot people on the Island. Türkiye recognises the Turkish Republic of Northern Cyprus (TRNC). Until a lasting and equitable solution is found within the context of the United Nations, Türkiye shall preserve its position concerning the “Cyprus issue”.
Note by all the European Union Member States of the OECD and the European Union
The Republic of Cyprus is recognised by all members of the United Nations with the exception of Türkiye. The information in this document relates to the area under the effective control of the Government of the Republic of Cyprus.
© OECD 2026
Attribution 4.0 International (CC BY 4.0)
This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence (https://creativecommons.org/licenses/by/4.0/).
Attribution – you must cite the work.
Translations – you must cite the original work, identify changes to the original and add the following text: In the event of any discrepancy between the original work and the translation, only the text of original work should be considered valid.
Adaptations – you must cite the original work and add the following text: This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed in this adaptation should not be reported as representing the official views of the OECD or of its Member countries.
Third-party material – the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and for any claims of infringement.
You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.
Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shall be Paris (France). The number of arbitrators shall be one.