Generational change: can it break the 'glass ceiling' of Latvian entrepreneurs?
Around ten thousand new companies are founded in Latvia each year, but only a few grow large enough to invest in R&D and compete internationally. A generational shift might alter this dynamic.
Latvia’s entrepreneurial landscape presents a paradox: approximately ten thousand new businesses are registered annually, yet relatively few achieve the scale needed to regularly invest in research, product development, and succeed in international markets. This gap between startup activity and growth potential is often referred to as a 'glass ceiling' for entrepreneurs.
Studies by the OECD have highlighted this issue, raising the question of whether a generational change could break through these limitations. The younger generation may bring different ambitions, technological fluency, and a global outlook that could help Latvian firms overcome existing barriers.
Despite the high number of new companies, only a small share become medium-sized or large players actively competing on the global stage. This suggests that innovation and growth capital often remain underutilized. A leadership transition in businesses might be key to shifting this trend, but it will require openness to change from both current business owners and the new generation.
