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Stimulating Entrepreneurship in Rural
Areas of Latvia
Rural area of Latvia
Covers 98% of the territory of Latvia
31% of the population lives in the rural area
Population density – 12 people per square kilometre
Rural politics today
The responsibility for the development of rural area is shared between ministries
The main document is “Rural Development Programme” (adopted in 1998)
Specially Supportable Regions’ Programme Rural Development Project (World Bank) Rural Partnership Programme SME’s development program Single Programming Document
Financial Resources for the Development of Rural Area
Governmental supportDirect payments
Rural development plan
EU Structural Funds European Regional
Development Fund European Social Fund European Agricultural
Guidance and Guarantee Fund
Financial Instrument for Fisheries Guidance
Single Programming Document
Priorities of the Rural Development Plan 2004 -2006
1st priority – development of effective, flexible and sustainable development of rural economy
The aim - to support the projects promoting effective and flexible business activities in rural area and to ensure the improvement of economical conditions for inhabitants of rural territories
2nd priority – preservation of biological diversity of rural areas
The aim - to support the activities ensuring biologically diverse environment and quality of landscape
Riga RegionTotal area: 10352.6 km; city area: 4%; woods and forests: 47.4%; agricultural area: 32%.
Population: 1.1million
inhabitants (47.4% of all the inhabitants living in Latvia). 84% live in Riga and towns of Riga region, but 16% - in the rural area.
Unemployment rate: 6%
Density
Density of Economic Activities
Economy
The largest contribution to the region’s economy is made by the metropolis. The key sectors of economics are: transit, finances, power industry, food production, wood-processing, furniture production, textile production and production of communication equipment. There are 27,695 companies in the region, 98% of them are private enterprises. 76,4% of all the enterprises are SME (enterprises with up to 9 employees).
Business Development Problems in the Rural Territory of Riga Region
Undeveloped infrastructure (roads, IT) Insufficient qualification of labour resources Undeveloped cooperation links, networks Few businesses with high added value Lack of foreign investments Problems with overqualification, i.e, farming is
still the main employment field Small density of population (7% - 12%) Undeveloped business support networks
Business & Technology Park TUKUMS
500 ha to Make Your Dreams Come True
Location
50 km from Riga, the capital of Latvia Bordered with Tukums, the centre of district 5 km from railway station "Tukums", the significant cargos trans-shipment point The cross point of important higways Riga – Ventspils and Jelgava –Tukums ~200 000 people within 90 minutes radius can
reach the object by highway connections
Potencial Regional Labor Force
Goal
To create well developed knowledge based business area in the former
military airfield Tukums
Objectives
To elaborate the trends in the business and territorial development
To establish the concept and strategy of BTP development
To establish the socio-economic plan of the territory
Advantages
Business industrial park: Transportation Distribution centres Logistics Centre of competences Garden and landscape services Professional training services Recycling Wood industry
Main Tasks to Develop the Rural Area
To increase the capacity of human resources To facilitate the co-operation among NGOs To make the network of support centres with
the aim to develop entrepreneurship The involvement of inhabitants in the
implementation of activities in the local level
Key issues
To increase the awareness of people living in the rural areas To provide information on investment programmes and financial
opportunities To activate the capacity of local action groups To facilitate attractive projects To increase the capacity of competitiveness in the labour market To establish the network of coordinators To develop the possibility to use information technologies in rural
areas To attract the attention of government to the problems in rural areas To build partnership among different sectors To solve social problems
Gain profit from changes, do not become their victim.
(Brian Tracy)
Thanks for your attention!
DACE GRĪNBERGATel. +371 9 404 788
Tukums district council Head of the Regional
Development Centre
