Evaluation of social enterprise status criteria in Latvia

Abstract

Social entrepreneurship plays an increasing role in national and sectoral strategic policy documents, education, research and the business sector. The number of social enterprises in Latvia tends to increase; at the same time, however, a large number of enterprises were not granted social enterprise status, or the applicants refused the status. Therefore, the aim of the research is to analyse criteria for granting social enterprise status in Latvia. The research found that defining and measuring social impacts were the main challenges faced by social entrepreneurs in obtaining social enterprise status. The issue of non-distribution of profits is discussable because potential social entrepreneurs are not sufficiently motivated to apply for social enterprise status as well as face problems with the attraction of investors. Besides, the criterion of involvement of target groups in the executive or supervisory body of a social enterprise as well as the employment of employees is often formally met. Overall, it could be concluded that the entrepreneurs who have previous experience in administrative work or entrepreneurship do not face significant problems in meeting the criteria for granting social enterprise status when applying for the social enterprise status and filling in the relevant documents. However, most often the individuals who do not have previous experience in administrative work or entrepreneurship do not find it easy to meet the criteria and apply for the status.