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POVERTY LEVEL AS A CONDITION FOR SOCIAL ENTREPRENEURSHIP DEVELOPMENT IN LATVIA
Abstract
The poverty and income inequality indicators in Latvia are among the highest in the European Union, which indicates its social stratification and polarisation. The mathematic calculations show that there is a risk that the number of low-income individuals might gradually increase over the next years and their number may be estimated at 372 thousand in 2015. However, any forecast on the number of low-income individuals can be considerably affected by changes in wages, the unemployment rate, labour emigration, and the development of social entrepreneurship. The research aim is to examine poverty problems in Latvia and to find their solutions in the aspect of social entrepreneurship. Socially sensitive groups of people – the unemployed, large families and single parents – are most subject to the risk of poverty. Social entrepreneurship plays a substantial role in increasing the employment and living standard of these social groups. In Latvia, no legal and institutional frameworks are imposed upon social entrepreneurship; yet, social entrepreneurship activities may be identified in the country, which makes a social and economic contribution at the levels of socially sensitive groups, local authorities, and the national government.
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