Latvia’s business-related legislation is poor to very poor, according to 50.6% of interviewed entrepreneurs. Only 19.2% view legislation as either very good or more or less good, according to Turība University’s Business Index.
Companies with 250 or more employees seem the most positive about Latvia’s business legislation, whereas companies with 10 to 49 employees are the most negative, results show.
Analysing results in different sectors it was concluded that the trade industry is the most negative about Latvia’s business-related legislation – 50% of respondents said the environment is poor or very poor. Service sector’s businessmen are slightly more positive about it even though 51% of them have said that the legislative environment is either very poor or poor. In the construction sector 50% of businessmen believe this, whereas in the production industry the proportion of such businessmen is 45%.
Region-wise the most negative entrepreneurs come from Vidzeme, where 62% consider Latvia’s legislative environment negatively; Zemgale and Kurzeme – 55% in each; Pieriga – 54%, Riga – 50% and Latgale – 37%.
«Enhancement of legislation associated with the business environment is one of the main pre-conditions for a sustainable national economy. Existing legislative acts, their application, efficiency of judicial power, efficiency of state administration, as well as society’s and entrepreneurs’ legislative literacy has a direct effect on commercial activities in every industry,» says Turība University’s Business Management Faculty’s dean Zane Driņķe.
She continues: «These indexes also reflect the attractiveness of Latvia’s business environment, which is highly important when it comes to attraction of foreign investments. Doing Business rating directly correlates with the country’s legislative environment, especially with the country’s approved laws and amendments.»
The study was carried out between the beginning of December 2018 and the end of January 2019. A total of 750 companies and CEOs participated in it.