bnn.lv Latviski   bnn-news.com English   bnn-news.ru По-русски
Ceturtdiena 21.06.2018 | Name days: Monvīds, Egita, Emīls
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

Ukraine's anti-corruption court law insufficient to IMF commitments

The International Monetary Fund has commended the Ukrainian parliament for passing a law to establish an anti-corruption court and pointed to need to amend it to ensure the court can work effectively.

Opinion: they’re trying to shut us up; KPV LV is inconvenient for current government

«We are inconvenient for the current government, the established order, because for the first time a party is prepared to use facts in its rhetoric in the pre-election period. They are trying to shut us up,» said KPV LV prime minister candidate Aldis Gobzems at a press-conference after Artuss Kaimiņš was taken away by Corruption Prevention and Combating Bureau.

Hydro and wind power plants produced 70.5% more electricity last year

In 2017 gross energy consumption in Latvia comprised 194.9 petajoules, which is 5.5 % more than in 2016. Over the past five years, the gross energy consumption has not changed significantly. However the share of renewable energy has increased by 2.55 percentage points.

Milder penalties for the accused in digital TV case; idea’s authors get no prison sentence

Riga Regional Court has released a shortened ruling in the so-called digital television criminal case. With it, the court acquitted previously convicted former director of Latvia’s National Theatre Ojārs Rubenis. Nevertheless, some of the accused have been sentenced to fines and actual prison time.

Estonian traitor Simm ruled to serve full 12.5 years in prison

A court in Tartu has decided that the Estonian Defence Ministry ex-official Herman Simm, found guilty of treason in 2009 and sentenced to 12.5 years in jail, has to serve his full sentence, not to be released earlier.

CPCB officers detain Kaimiņš after Saeima meeting

Officers of Latvia’s Corruption Prevention and Combating Bureau detained Saeima deputy Artuss Kaimiņš after the end of the parliament’s meeting.

Around 15% of Estonian 15-19-year-olds estimated to have mental illness

In Estonia, an estimated total of 20,000-40,000 adolescents, comprising 10-20% of all teenage Estonians, have been found to suffer from a mental illness and close to 3,000 children have been prescribed antidepressants.

Chief: Anti-Money Laundering Service should not submit to a single person

Anti-Money Laundering Service should not be controlled by a single person, says chief of the Control Service Ilze Znotiņa.

Saeima permits commencement of criminal process against Artuss Kaimiņš

This week Latvia’s Saeima voted in favour of the decision to detain and then perform a search in the home of Saeima member Artuss Kaimiņš from KPV LV political party.

U.S. withdraws from UN Human Rights Council voicing sharp criticism

The U.S. has withdrawn from the United Nations Human Rights Council describing the body as being politically biased and not working towards reducing human rights violations globally.

Latvian minister confirms interrogation by Lithuanian investigators

In the case regarding possible corruption in the National Blood Centre, Lithuanian services have interrogated Latvia’s Healthcare Minister Anda Čakša, as confirmed by the official.

Recreational use of marijuana legalised in Canada

Canadian Parliament has adopted a law legalising the recreational use of marijuana nationwide after medical use of the drug has been allowed since 2001. Canada is to become the second country in the world allow buying marijuana for recreational use.

Human Rights Committee: KGB documents should be made publicly accessible

Documents left from Latvian SSR KGB office are part of national document heritage and therefore should be handed over for lifetime storage and be made publicly accessible for research in Latvia’s National Archive.

Non-negotiated contracts; fictive deals: digital television introduction schemes for «mere mortals»

The criminal process revolving around digital television project’s realization in Latvia was launched 15 years ago – in 2003. And it began with a search in a company owned by Andris Šķēle. After that, the list of involved people started expanding with names like Andrejs Ēķis, Jurģis Liepnieks and others.

Doctors unjustifiably charged fees for services worth 255,000 last year

Last year, authorities found that medical institutions that provide state budget-financed healthcare services had charged fees for services worth EUR 254,994, according to data compiled by Health Inspectorate.

Budget Committee picks Swedbank economist for Bank of Latvia Council

On Tuesday, 19 June, Saeima’s Budget and Finance Committee unanimously decided to submit to the Saeima a decision project regarding approval of Mārtiņš Kazāks for the post of member of the council of the Bank of Latvia, as confirmed by Saeima’s press-service.

Farmers Saeima proposes declaring state of emergency in Latvia’s agriculture sector

Farmers Saeima association has sent a letter to Latvia’s State Chancellery, Agriculture Ministry, Finance Ministry and Latvian Association of Local and Regional Governments, detailing a request addressed to the Cabinet of Ministers and Saeima to declare a state of emergency in the country’s agriculture sector because of the lasting drought.

IT specialist’s lawyers appeal client's arrest in recent restaurant case

Lawyers of Edgars Štrombergs, who is the accused party in the Vairāk saules restaurant cash register data manipulation case, have appealed the security measure applied to him, as confirmed by sworn attorney Mareks Halturins.

Russian and Belarusian arms control experts hosted by Lithuania

Russian and Belarusian arms control inspectors have been hosted by Lithuania as NATO forces trained across the Baltic states and Poland in exercise Saber Strike 2018.

Latvia’s ports suffer freight volume decline in first five months of 2018

Latvian ports handled 27.072 million tonnes of freight in the first five months of this year, which is 7.5% less when compared to the same period of last year, according to data compiled by Transport Ministry.

Bicycle rickshaws in Tallinn will need safety belts from July

Seeking to regulate the provision of bicycle rickshaw services in the Estonian capital, the Tallinn City Council has is to more particular bicycle rickshaw regulations that would align the services closer to car taxis.

158 election sites to open in Riga during next Saeima elections

A total of 158 election sites are planned to be opened in Riga for this autumn’s Saeima elections, as confirmed by documents prepared by Riga City Council.

30% of Latvian residents are dissatisfied with their family’s financial state

Residents’ overall mood has declined considerably across all survey positions. Residents have become the most negative about Latvia’s economic situation – 31% of them believe it has worsened. When asked to voice their outlooks for Latvia’s economy in a year from now, 17% of respondents said it will have improved, according to results of Baltic International Bank’s latest Latvian Barometer.

Apple fined 5 million euros for customer rights violations in Australia

A court in Australia has ruled that U.S. tech firm Apple has to pay a fine of 5.7 million euros refusing to repair iPhones and iPads that had been serviced by third parties as those actions breached consumer law.

Latvian coalition still torn about attracting highly-qualified guest workers

Because of differences in opinions among ministries, Latvia’s government is unlikely to support and view the proposal to ease the issue of EU blue card to highly-qualified guest workers without appropriate higher education, says Prime Minister Māris Kučinskis.