Who becomes self-employed comparative analysis of Lithuania and Latvia

Abstract

Personal decision to change a position of a employee / unemployed to a status of a self-employed is extremely important in such countries with small economics as Lithuania or Latvia. The research (Remeikiene, Startiene, 2012) revealed that in Lithuania, self-employment is treated as an alternative to escape unemployment but not as an opportunity to find new business niches or implement one’s dreams while Latvia took the second position from all EU countries by the share of population activity in early-stage entrepreneurial activity, according to the data of Global Entrepreneurship Monitor (2012). In general sense, Lithuania and Latvia are treated as similar countries comparing them by both the level of economic development and culture. That is why the aim of the article is to assess which group of people (employee or unemployed) are inclined to self-employment in Latvia and carry out a comparative analysis of the results of the research in Latvia and Lithuania on this topic.