Challenges to the Development of Work Integration Social Enterprises in Latvia

Abstract

Social entrepreneurship is becoming increasingly popular in Latvia because it allows enterprises to implement economic activities while tackling social problems relevant to society. Since 2018, when the Social Enterprise Law was introduced, the number of registered social enterprises has reached 195 (in 2021). Work integration is the most common field of activity of Latvian social enterprises. According to the Latvian legislation, 13 groups at risk of social exclusion can be employed in a work integration social enterprise (WISE), but, in reality, many of these groups are not employed. The research aimed to analyse the factors influencing the development of WISEs and identify the challenges to employing the target groups in Latvia. The challenges identified are related to the difficulties faced by entrepreneurs in finding potential employees from the target groups, the social, psychological and health conditions of the target groups, their level of education and motivation to work. The lack of specific support tools also poses a challenge. As a result, recommendations are given for improving this situation. The research used statistical analysis, however, for an in-depth analysis of the information, interviews were carried out with work integration social entrepreneurs and social entrepreneurship experts.