In Latvia this year, the number of “dead” enterprises exceeds the number of “newborns” by more than 50%, according to Lursoft data from the Register of Enterprises.
For about seven months, 12,309 enterprises were liquidated, and only 6127 were registered. The preponderance of the liquidated enterprises over the registered enterprises compared to 2016 and 2017 became larger.
Some respondents believe that the decrease in the number of enterprises is due to the liquidation of inactive enterprises, associated with an unsuccessful business, an increase in business costs, and with changes in the purchasing power of the population and a reduction in its number.
In regions far from Riga, the main reason is the narrowing of the market and the low purchasing power of people. That is, if the number of consumers in Latvia decreases, it is logical that the competition among the traders is growing competition, and someone is not able to withstand it.