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Title: FROM REGULATION TO ACTION: UNDERSTANDING THE GREEN TRANSITION CHALLENGES FOR LATVIAN BUSINESSES
FROM REGULATION TO ACTION: UNDERSTANDING THE GREEN TRANSITION CHALLENGES FOR LATVIAN BUSINESSES

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Ilona Beizitere; Ieva Brence; Baiba Rivza
10.5593/sgem2025/5.1/s22.086
10.5593/sgem2025/5.1
1314-2704
978-619-7603-85-9
English
25
5.1
• Prof. Dr. hab. oec. Baiba Rivza, LATVIA• Prof. DSc. Ildiko Tulbure, GERMANY• Prof. DSc. Oleksandr Trofymchuk, UKRAINE
Economics of Sustainability, Policies & Environmental Legislation
The European Green Deal (EGD) represents a transformative policy initiative aimed at shifting the EU economy toward climate neutrality and environmental sustainability. While the EGD provides a strategic vision and financial instruments for achieving green goals, its implementation poses substantial challenges for enterprises, including tiny and medium-sized enterprises (SMEs). This paper examines the perceptions of Latvian entrepreneurs regarding the EGD’s anticipated impact on business performance, the key obstacles to green transformation, and the types of support required for successful adaptation. A mixed-methods approach was employed, comprising desk research on European Union (EU) and Latvian policy frameworks, as well as a survey conducted among existing and prospective entrepreneurs. Factor analysis revealed four principal dimensions shaping entrepreneurial attitudes: growth and expansion potential, cost management pressures, risks of decline, and uncertainty linked to regulatory ambiguity. Compared to other EU countries, Latvian SMEs exhibit lower levels of engagement with green practices, partly due to the fragmented implementation of policies and limited access to tailored support. Survey results indicate that entrepreneurs primarily associate the EGD with rising operational costs rather than competitiveness gains. Moreover, current financial instruments and state aid often fail to align with the real challenges faced by SMEs. The study emphasizes the need for a more cohesive policy framework that integrates financial assistance, advisory services, and regulatory clarity. It also underscores the importance of international cooperation and the need to harmonize support across EU Member States. The findings offer practical recommendations for policymakers, financial institutions, and support agencies to ensure that the green transition becomes an inclusive and economically sustainable process for Latvian businesses.
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This research was supported by project “Strengthening the Institutional Capacity of LBTU for Excellence in Studies and Research”, funded by The Recovery and Resilience Facility.
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https://doi.org/10.5593/sgem2025/5.1/s22.086
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FROM REGULATION TO ACTION: UNDERSTANDING THE GREEN TRANSITION CHALLENGES FOR LATVIAN BUSINESSES
Proceedings of 25th International Multidisciplinary Scientific GeoConference SGEM 2025, Volume 25, Issue 5.1
25th International Multidisciplinary Scientific GeoConference SGEM 2025, Volume 25, Issue 5.1, 29 June - 6 July, 2025
Proceedings Paper
STEF92 Technology
International Multidisciplinary Scientific GeoConference Surveying Geology and Mining Ecology Management, SGEM
SWS Scholarly Society; Acad Sci Czech Republ; Latvian Acad Sci; Polish Acad Sci; Russian Acad Sci; Serbian Acad Sci and Arts; Natl Acad Sci Ukraine; Natl Acad Sci Armenia; Sci Council Japan; European Acad Sci, Arts and Letters; Acad Fine Arts Zagreb Croatia; Croatian Acad Sci and Arts; Acad Sci Moldova; Montenegrin Acad Sci and Arts; Georgian Acad Sci; Acad Fine Arts and Design Bratislava; Russian Acad Arts; Turkish Acad Sci.
685-696
29 June - 6 July, 2025
website
10521
Green transition, Latvian enterprises, regulatory framework, state support, sustainability

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