On 1 April, Latvia marks eight years since the Social Enterprise Law entered into force – a milestone that has helped drive the development of social entrepreneurship in the country. Symbolically, the eighth year reflects a shift from building experience to unlocking open-ended growth potential. The law sets out how social enterprise status is granted, registered and supervised, and it establishes support mechanisms for businesses whose core activities pursue social objectives.
Minister for Welfare Reinis Uzulnieks underlines the law’s role in growing the sector: “Over these eight years, social entrepreneurship in Latvia has proven to be more than a support mechanism—it is a powerful tool for strengthening societal well-being. The Social Enterprise Law has provided a solid foundation for businesses that tackle socially important challenges, create jobs and deliver services that might otherwise be unavailable. Interest in obtaining social enterprise status remains high, showing that people want to create meaningful change. The Ministry of Welfare will continue to support social entrepreneurs through consultations, funding opportunities and initiatives that strengthen the sector and promote long-term sustainability.”
Since the law entered into force, 404 enterprises have been granted social enterprise status. At present, 294 social enterprises are operating in Latvia. Of these, 61% focus on supporting groups of population facing major social challenges—for example by improving access to education, health care, sport and recreation, or social services. Another 20% are work integration enterprises, creating employment opportunities for target groups. The remaining 19% deliver long-term social impact through activities related to environmental and animal protection or the promotion of cultural diversity.
Social enterprises operate across Latvia. Of the 294 active social enterprises, the largest share is based in Riga: 137 enterprises, or 47% of the total. 60 enterprises (20%) are located in the Riga metropolitan area. With regards the other regions: Vidzeme region has 35 enterprises (12%), Kurzeme and Zemgale each have 24 enterprises (8%), while Latgale region has 14 enterprises (5%).
The Social Enterprise Law also provides a range of practical support measures. These include municipalities’ ability to grant real estate tax relief, the possibility for public entities to provide their property for use free of charge, and the option to engage volunteers. In addition, social enterprises may receive compensation for the employer’s share of mandatory state social insurance contributions paid for employees with disabilities and mental disorders, a one-off wage subsidy, and compensation for employer-paid sick leave.
One of the most in-demand support measures is grant funding available through the financial institution ALTUM. Grants can provide up to €40,000 to start a social enterprise and up to €200,000 for business development. Once a company has obtained social enterprise status, it can apply by submitting a business plan. Under the ALTUM grant support programme, available since 2024, 112 contracts have been signed with social enterprises for a total of €6.02 million; the average grant is €54,000.
The Ministry of Welfare receives around 4–6 applications each month for social enterprise status. To support applicants in preparing strong business plans, the Ministry offers free consultations to social entrepreneurs.
In 2026, Social Entrepreneurship Week will once again be held to raise the visibility of social entrepreneurship and encourage public engagement. Alongside this, further activities will be implemented to strengthen and develop Latvia’s social entrepreneurship ecosystem. Information on planned events will be published on the Ministry of Welfare’s website and social media channels, as well as in the media.
The project “Support for Social Entrepreneurship” is implemented with support from the European Social Fund Plus (ESF+) under the European Union Cohesion Policy Programme 2021–2027.