The effect of the Latvian business environment on society’s motivation to engage in entrepreneurship: comparative context with Estonia

The thesis examines the motivation of society to do business in Latvia, analyzing the development of the business environment, specific elements, and comparing them with the Estonian business environment. Thus, the objective of the research is to find out the motivation of Latvian society to do business, based on the development of the Latvian business environment in comparison with Estonia. Primary data sources include official national policy and economic strategy documents; issued reports on country competitiveness in various business-related segments; statistics from official statistics websites. Secondary data include books about the elements of business environment and individual motivation to do business, and publications in various internet sources. Research methods include quantitative method: survey - conducting a survey and analysis of the motivation of Latvian society to do business; and performing comparative analysis of the elements of the business environment in Latvia and Estonia. The results of the study show that elements of the business environment are less developed in Latvia than in Estonia, which explains Latvia's lower rankings in the international competitiveness indices. This is reinforced by the analysis, which concludes that the goals of Latvia's developing business environment strategy have largely not been achieved. The opinion of the Latvian society correlates with the results of the research. The motivation of Latvian society to do business is very positive, however, it is due to personal motivation factors, because the business environment created and developed by the Latvian government is perceived negatively. Proposals on further in-depth research, business environment and Latvian society’s motivation development were concluded. Further In-depth research is needed on the possibilities of increasing the motivation of society in Latvia, analyzing specific categories of business environment separately. Further business environment development is needed. Latvian society’s motivation development is to be achieved if additional measures and plans are executed.