bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Monday 24.07.2017 | Name days: Krista, Kristiāna, Kristiāns, Kristīne
LatviaLatvia

Tax burden worries start-ups in all three Baltic States

FaceBook
Twitter
Draugiem
print
(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUStart-ups in all three Baltic States mention high tax burden as the biggest challenge of 2017, according to results of SEB Bank’s study.

Results show that attraction of funding remains a major challenge for start-ups in Baltic States. In Latvia and Lithuania, start-ups also experience difficulties with finding qualified workers. Their Estonian colleagues mention problems with attracting new clients.

SEB Bank board member Arnis Skapars: «Establishing a positive financial flow to cover business costs is the toughest challenge for the starting point of any business. This is why payment of taxes can cause serious headaches in the first years of starting a business. This situation in Latvia, Lithuania and Estonia is similar in this regard.»

Continuing, he adds: «In my experience, the deciding factor for success has always been the level of ambition of every new company, as well as their ability to act and fight for their place under the sun. I see some reasons for optimism here, because 53% of Latvian start-ups are busy working on products and services, 24% invest in training of their employees, 21% develop new business models, and only 26% have no plans to introduce any innovations.»

An addition, Skapars mentions that until companies are able to form a stable flow of finances and risk balance allows them to attract bank funding, the role of credit institutions is that of supporting emerging businessmen with efficient transaction solutions, advice and experience.

Interesting differences are noted in the reasons used by Baltic residents to start their own business. 38% of Latvia and 35% of Lithuanian respondents mentioned the main reason for them is the desire to increase their income. 35% of Estonian start-up businessmen mentioned the goal to become independent, according to study results.

Latvian Investment and Development Agency’s Innovation Support Department manager Sarmite Karlsone comments the situation the following way: «Latvia has a developed ecosystem that helps emerging businessmen develop their ideas. Creation of regional incubators and Start-up Law also served as positive impulses. We have noticed that emerging businessmen have to improve their sales skills, because the ability to present a product goes a long way on the global market. This is why we help establish information exchange between experienced and young businessmen.»

In addition, 57% of respondents in Latvia said they would like to receive advantageous offers and discounts for everyday transactions, 37% would like to participate in seminars and training organized by banks, and 29% would like to receive new digital solutions to simplify work with banks.

42% of start-ups in Latvia, 39% in Estonia and 50% in Lithuania plan to take on more employees this year. The majority of businesses in Baltic States (60% in Latvia, 66% in Estonia and 63% in Lithuania) focus their activities on domestic markets. 67% of Lithuanian, 80% of Latvian and 84% of Estonian companies plan that their turnover will not exceed EUR 100,000 this year, the data suggests.

ZGI Capital investment director Rudolfs Krese mentions: «The second generation of start-ups has begun growing in Baltic States after the first wave of success. Success stories like Skype inspire others – if they accomplished that, so can I. Most concerns are associated on the excessive focus on domestic markets. Our advice is for companies to consider exports from day one, and use Latvia’s market to test products.»

Ref: 225.109.109.6109


Leave a reply

17 journalists of Turkish newspaper charged with aiding terrorist organisation

In Turkey, 17 journalists of the opposition newspaper Cumhuriyet are to be tried over charges of aiding a terrorist organisation and, if found guilty, they face up to 43 years in jail.

Week to be warm in Latvia, but some rain is still expected

At the beginning of the week, weather in Latvia will be dictated by a small cyclone with its centre above Lithuania. The precipitation zone associated with this cyclone will bring about rain to south-east parts of Lithuania, as reported by State Environment, Geology and Meteorology Centre.

BNN summary of the week: Kucinskis in Ridzene’s room and government’s rushed decisions

BNN offers a summary of this week’s topical news in a variety of categories: Change; Fight; Truth; Business and Growth.

Tourists die in Aegean Sea earthquake

A powerful quake that struck in the Aegean Sea has taken the lives of two persons in Greece, local authorities have stated.

Fashion in business: how to be heard in the modern-day world?

It would seem that nowadays strict fashion trends have «died». This is because people for ways to look beautiful and comfortable. One of the minds behind TRÉS fashion line, Enija Mugurevica shares advice how to start a business in the fashion industry from scratch and be heard and noticed in the modern-day world.

FCMC fines Norvik Banka for EUR 1.3 million and Rietumu Banka for EUR 1.56 million

Finance and Capital Market Commission in cooperation with Federal Bureau of Investigation’s Counterproliferation Center found out in a target inspection that Latvian banks – Norvik Banka and Rietumu Banka – have not followed requirements of regulations for the prevention of money laundering and terrorism funding.

Saeima approves controversial amendments to Credit Institutions Law

On Friday, 21 July, Latvian Saeima approved amendments to the Credit Institutions Law, which were previously returned to the parliament for a repeated viewing by President Raimonds Vejonis, completely unchanged.

Bank of Latvia: tax reform is a disappointment; it will not improve competitiveness

The tax reform submitted to the Saeima for approval is one big disappointment that will not improve competitiveness, said head of the Monetary Policy Office of the Bank of Latvia Uldis Rutkaste in an interview to LNT 900 seconds.

Betsafe predicts: will Duklavs remain Latvia’s Agriculture Minister?

Although Unity has asked the Union of Greens and Farmers to replace Agriculture Minister Janis Duklavs with someone else after the scandalous oligarch talks in Ridzene hotel, Duklavs will likely keep his post, according to Betsafe bookmakers. There is a 33% probability of Duklavs losing his post.

Latvian alcohol industry has an offer to increase excise tax rate

Experience shows – rapid increase of excise tax results in rapid increase of prices and rapid decline of revenue for the state treasury. Based on careful calculations, Latvian Alcohol Industry Association asks the government to stick with the current excise tax increase plan.

Air temperature to reach +24° C… +25° C in Latvia on weekend

Weather is expected to be largely dry this weekend in Latvia. Next week, however, is expected to be rainy, as reported by State Environment, Geology and Meteorology Centre.

Saeima deputies sign agreement on Oligarch talks committee’s formation

So far only parliament members have signed the agreement on the formation of a Saeima committee for the investigation of Oligarch talks. Neither of them represents Unity – Karlis Serzants from Union of Greens and Farmers and Einars Cilinskis from VL-TB/LNNK.

Seaima Praesidium approves parliamentary budget for 2018

On 20 July, Saeima Praesidium approved the parliament’s budget request for 2018. It is planned to be EUR 22.04 million, setting funding to maintain current functions on the level of 2017, BNN was informed by Saeima press-service.

Beer brewers: fooling around with tax reforms could destroy Latvia’s beer industry

By increasing excise tax for beer, the goal of reducing alcohol consumption will not be achieved. This is because consumption of other alcoholic beverages will increase as a result, notes CEO of Latvian Breweries Union Peteris Linins, commenting on the government’s plans to raise excise tax for beer.

4,558 marriages registered in Latvia in first six months of 2017

Over the past three years, Latvian birth number almost has not changed and constitutes 22 thousand annually. 10,175 children were born in the first half of 2017, which means 990 newborn fewer than in the same period a year ago.

Broadcasting organizations ask NEPLP to stop meddling with public media contents

The board of Latvian Association of Broadcasting Organizations urges the government and National Electronic Mass Media Council to continue realizing reforms in public media.

Kucinskis also met with Slesers in the infamous meeting room of Ridzene hotel

Latvian Prime Minister Maris Kucinskis admits having met with Ainars Slesers in the now infamous meeting room in Ridzene hotel a couple of times, specifically when the People’s Party made the decision to join Par labu Latviju.

Pumpurs hands 99% of Užavas alus capital shares to his son

Ildis Pumpurs, up until now the only owner and board member of Ventspils Užavas alus brewery, has handed 99% of the company’s capital shares to his son Oskars Pumpurs.

Repeated elections in Kekava – activity twice as high so far

Repeated election has commenced in Kekava’s 785 election site. 274 voters or 7% of local voting population took part in elections in the first day, according to data from the election site.

Estonia plans accepting from Turkey 160 Syrian refugees

Estonian police are looking into the documents on 160 refugees from Syria that are to be moved to Estonia in line with an agreement reached between the EU and Turkey.

Experts: potato harvest in Latvia may come later than usual this year

Potato harvest in Latvia may come one week later than usual. Still, the harvest is expected to be on the level of last year, BNN was told by Potato Growers and Processors Union.

News feed to be added to Google's website and mobile app

Internet search giant Google has said it would add a continuous feed of news and other content to its homepage and mobile app, which would be displayed before a user makes a search query.

NATO and Chinese ships perform joint manoeuvrer before entering Baltic Sea

This week, Standing NATO Maritime Group One welcomed in international a group of Chinese Navy ships that entered the Baltic Sea through the Strait of Denmark from the North Sea. Ships of both groups performed a mutually coordinated manoeuvrer for the ships to ensure safe entry of ships into the Baltic Sea, as reported by Latvian Defence Ministry.

Russia distances itself from proclamation of «Malorossiya» in eastern Ukraine

The Kremlin has noted that the proclamation of a county entitled «Malorossiya», or «Little Russia» in the pro-Kremlin-separatist-held eastern parts of Ukraine is a personal initiative of the rebel leader.