<abstract xmlns="http://www.w3.org/1999/xhtml"><bold>Research purpose.</bold> The purpose of this study was to determine the role of small and medium enterprises in the economy, as well as to study and evaluate the effectiveness of government support methods for small business entities (SMEs) using the example of the Republic of Latvia. The subject of the research was the system of state regulation and promotion of SME development. The object of the research was the sphere of small business in the Latvian economy, including SMEs, infrastructure support and development of small business.<bold>Design/Methodology/Approach.</bold> The study used basic methods of scientific knowledge of economics: an interdisciplinary approach combining methods of systems and comparative analysis, an integrated approach, induction, deduction, analysis, synthesis, methods of organization theory and management, logical analysis, strategic management and also economic analysis of small businesses.<bold>Findings.</bold> The research resulted in a system of state regulation and promotion of SME development in Latvia developed by the author, based on an assessment of the impact of measures provided to support SMEs, taking into account the importance of the role of small business in the economy of the Republic of Latvia.<bold>Originality/Value/Practical implications.</bold> The practical significance of the work is that the study completes a number of conclusions and practical recommendations in the field of organizational measures for effective support and multilateral development of the SME sector in the economy, recognition of the role of small business as the basis of the economic stability of the Republic of Latvia and the effectiveness of its support as the main state economic policy goal.</abstract>

Research purpose. The purpose of this study was to determine the role of small and medium enterprises in the economy, as well as to study and evaluate the effectiveness of government support methods for small business entities (SMEs) using the example of the Republic of Latvia. The subject of the research was the system of state regulation and promotion of SME development. The object of the research was the sphere of small business in the Latvian economy, including SMEs, infrastructure support and development of small business.Design/Methodology/Approach. The study used basic methods of scientific knowledge of economics: an interdisciplinary approach combining methods of systems and comparative analysis, an integrated approach, induction, deduction, analysis, synthesis, methods of organization theory and management, logical analysis, strategic management and also economic analysis of small businesses.Findings. The research resulted in a system of state regulation and promotion of SME development in Latvia developed by the author, based on an assessment of the impact of measures provided to support SMEs, taking into account the importance of the role of small business in the economy of the Republic of Latvia.Originality/Value/Practical implications. The practical significance of the work is that the study completes a number of conclusions and practical recommendations in the field of organizational measures for effective support and multilateral development of the SME sector in the economy, recognition of the role of small business as the basis of the economic stability of the Republic of Latvia and the effectiveness of its support as the main state economic policy goal.

The Role of Small Business in the Economy and Methods of Its Government Support Using the Example of the Republic of Latvia

Economics and Culture

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Research purpose. The purpose of this study was to determine the role of small and medium enterprises in the economy, as well as to study and evaluate the...

The Role of Small Business in the Economy and Methods of Its Government Support Using the Example of the Republic of Latvia

Published Online: Dec 30, 2019

Page range: 72 - 81

DOI: https://doi.org/10.2478/jec-2019-0023

Keywords
government support for small businesses, Latvian economy, small business, SME

© 2019 Ludmila Verovska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The Role of Small Business in the Economy and Methods of Its Government Support Using the Example of the Republic of Latvia

Published Online: Dec 30, 2019

Page range: 72 - 81

DOI: https://doi.org/10.2478/jec-2019-0023

Keywordsgovernment support for small businesses, Latvian economy, small business, SME

© 2019 Ludmila Verovska et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
government support for small businesses, Latvian economy, small business, SME