Innovative start-ups: challenges and development opportunities in Latvia

Purpose The purpose of this study is to identify the problems and possibilities for development of innovative start-ups in Latvia. Design/methodology/approach To achieve the aim of this study, a survey of Latvia's high school students in 2015 (n = 5,910) was undertaken by an online questionnaire within a financial skill built-up contest New Financial Expert 2016 held by the Financial Institute of Swedbank (Swedbank survey, 2016). Further, Latvia University of Agriculture master students (n = 97) were interviewed in the year 2016 to identify master students opinion about necessary support for entrepreneurship, future services or goods with potentially high added value and find out their readiness for innovative action. Findings A comparative analysis of data of the master student interviews and the survey of Latvia's high school students showed that most of the youth associated their entrepreneurship prospects with innovative ideas, new technologies and new skills. The results of the research indicated that the foundation of start-up enterprises in Latvia led to positive results and gave an impulse to increasing economic activities as there were the necessary preconditions for their development. Originality/value The studies are mostly dedicated to start-ups that are less likely to innovate and have linked the concept of the start-up with business incubation. Unlike other studies, this is a specific research that provides insights into the situation in Latvia and is directed toward building innovative start-up enterprises that should be linked with the growth-oriented new technology, globalization and global market with a focus on innovation. Thus, research findings contribute to extant research on the possibilities of development of innovative start-up enterprises in Latvia and advance the present understanding of the main problems in the creation of new innovative start-ups.