Social and economic aspects of self-employment in Latvia

Self-employment level in Latvia is almost twice lower than the average in EU countries. Until 2005 it reduced but in recent years the ratio of self-employed. persons in the market sector structure has; increased. At the beginning of the 90s the development of self-employment in Latvia was more influenced by pull factors-person's independence, opportunity to gain bigger income and pay less taxes. At the end of the 90s starting self-employment was more a push factor because to minimize labour costs, employers preferred collective agreements with self-employed persons. Further Latvia should facilitate self-employment of future entrepreneurs, as it gives an opportunity to test and develop one's abilities, to gather experience and capital for further business activity on a wider scale.