A survey reveals that startups primarily choose state support programs or rely on their own capital
In the annual innovative ideas competition “Ideju kauss” organized by the Investment and Development Agency of Latvia (LIAA), this year’s participants - Latvian startups -were surveyed. The results show that startups primarily seek to attract funding through state support programs such as LIAA incubators or similar initiatives, or they rely on their own capital. The least preferred option for funding is loans and financial institution services.
According to the survey conducted by LIAA, new entrepreneurs lack two key elements for successful business development - funding and knowledge. This insight from participants confirms that “Ideju kauss” can serve as a key instrument to improve both of these aspects. As last year’s winner, Toms Lazdovskis from the musical instruments and audio equipment company “Echo Monk,” noted, the main benefits were not only the cash prize but also the valuable advice from experts.
“We are pleased that almost all participants of this year’s ‘Ideju kauss’ recognized LIAA’s support programs as useful and are already receiving or planning to receive support services for implementing their business ideas. Moreover, the survey shows that nearly 75% of participants plan to reinvest their first major profits into business development, which demonstrates that young entrepreneurs are thinking long-term. We are happy to be a reliable and secure stepping stone for them on their path to the future,” said LIAA Director Ieva Jēgere.
Young entrepreneurs identified finance, financial management, and resource acquisition as the most useful webinar topics. This confirms that LIAA’s “Ideju kauss” can provide entrepreneurs with both financial resources and knowledge, helping them realistically launch and grow their new businesses. However, one of the main challenges mentioned by competition participants is the lack of time when starting a business. This time constraint also affects the availability of funding for startups.
It is clear that without state programs, including LIAA’s “Ideju kauss,” it would be more difficult for new entrepreneurs to successfully start and develop their businesses. In the “Ideju kauss” survey, the main and most valuable benefits of state programs were identified as access to funding, mentoring programs and training, investor networking events, opportunities for experience exchange, and socialization activities.
According to the competition participants, the two main sources of motivation for starting their own business are self-realization and financial independence. Other key reasons include having a positive impact on society, acquiring new knowledge and skills, building connections, and other factors. Meanwhile, the main motivation for participating in “Ideju kauss” is the competition for the cash prize, the opportunity to test and refine a business idea, to challenge oneself, meet like-minded people, attract investors, and gain knowledge through the provided training.
About the competition
“Ideju kauss” is implemented within the LIAA project “Development of Innovative Entrepreneurship for Small and Medium-sized Enterprises (SMEs),” co-financed by the European Regional Development Fund and the European Union.
About LIAA
LIAA promotes the competitiveness of Latvian entrepreneurs, export growth, and investment attraction, as well as develops the tourism sector and implements the national image policy. The agency acts as the state’s partner in business development—from idea to international markets. With a wide network of representations abroad and regional business centers in Latvia, LIAA helps companies grow and positions Latvia as a safe, innovative, and open country in the global economy.
The views and opinions expressed are solely those of the author(s) and do not necessarily reflect those of the European Union or the European Commission. Neither the European Union nor the European Commission is responsible for them.
