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With the goal of ensuring effective and continuous state support in the current volatile market conditions, where entrepreneurs need to reorient markets and promote exports by constantly seeking new supply and sales markets, the Cabinet of Ministers decided at its August 27 meeting to increase support for small and medium-sized enterprises (SMEs) by more than 11 million euros for export promotion and to allocate an additional 2 million euros for the development of dual-use products and technologies.
Under this initiative, businesses will be able to receive grants for participation in international events and platforms; the development of publicity and marketing materials; the creation and purchase of market research in target markets; the evaluation of the compliance of production facilities and products; participation in international industry associations; the recruitment of foreign experts in relevant industries for export markets; the design and registration of trademarks and designs; participation in international trade missions organized by the funding recipient and in visits abroad by high-ranking Latvian state officials, both in-person and online; as well as the organization of international sports events and exhibitions. Additionally, the Latvian Investment and Development Agency (LIAA) will provide consultations through Latvia’s external economic representations, organize business and export promotion events both in-person and online, and support participation in the funding recipient's national stands, adaptation of products or services to foreign markets, and export consultations for establishing business contacts abroad.
Furthermore, a funding of 2 million euros is allocated to ensure business incubation for companies developing new dual-use products and technologies. This involves collaboration between LIAA and the Ministry of Defense in evaluating beneficiary applications.
"The expansion of support in the small business segment, including manufacturers of dual-use products and technologies, is a clear signal for the development of the defense and related industries in Latvia. I would like to emphasize that, in addition to the already available support instruments, the Ministry of Economics has prepared two new large-scale programs, which provide both grants and loans with capital discounts for the development of new dual-use product manufacturing in Latvia, allocating a total of 100 million euros for this purpose," stated Minister of Economics Viktors Valainis.
The support program under the European Union Cohesion Policy Program for 2021–2027, specifically under goal 1.2.3 "Promote sustainable growth, competitiveness, and job creation in SMEs, including through productive investments," and action 1.2.3.1 "Support for the Development of Innovative Entrepreneurship in SMEs," was approved on July 13, 2023. By the end of July this year, within the framework of the EU fund support program "Support for the Development of Innovative Entrepreneurship in SMEs," support has been granted to 96 companies for business incubation, 156 grants have been issued, and non-financial support has been provided to 57 companies for export promotion.
More information on the amendments approved by the Cabinet of Ministers to the Cabinet Regulations No. 407 "Implementation Rules for the Support Program of the European Union Cohesion Policy Program for 2021–2027, Specific Support Goal 1.2.3 'Promote sustainable growth, competitiveness, and job creation in SMEs, including through productive investments,' Action 1.2.3.1 'Support for the Development of Innovative Entrepreneurship in SMEs'" can be found on the Unified Legislation Portal.