Evaluation of institutional factors of self-employment: comparative analysis of Lithuania and Latvia

Abstract

The article is aimed at the analysis of the main differences between the institutional factors of selfemployment in Lithuania and Latvia. In order to fulfil the raised aim, the first section has been designed for the analysis of the experience of entrepreneurship promotion from governmental positions in different geographical areas (Europe and the USA). The second section introduces the methodology of the empirical research and the course of the expert evaluation. 5 experts from Latvia and 9 experts from Lithuania were involved in the research. The results of the empirical research propose the following conclusions: the number of the selfemployed in Latvia could be increased by focusing on the financial measures of self-employment while in Lithuania it could be increased by focusing on tax incentives; the opportunity to receive a preferential credit is an influential factor of self-employment promotion in both Latvia and Lithuania; business expansion while becoming an employer could be promoted by facilitation of tax administration, less intensive regulation of the labour market and financial support provided for small and medium business.