Blog author: Social Entrepreneurship Association of Latvia (SEAL)
In recent years, Latvia has witnessed a growing interest in social entrepreneurship (SE), with numerous enterprises striving to address societal challenges through innovative business models. However, the digital landscape presents both opportunities and hurdles for these mission-driven organizations. One of these challenges is the continuous and rapid digitization process. Main aim of SEAL is to promote the digitization of social enterprises and extend SE knowledge in the use of data. Social Entrepreneurship Association of Latvia (SEAL) is one of two Baltic partners in the project DoImpact.
The digital transformation of social enterprises is crucial for their efficiency, growth, and sustainability. The recent DO Impact Survey sheds light on the digital maturity of Social Economy Enabling Organisations (SEEOs) in Latvia, providing key insights into their current state, challenges, and opportunities. And also collects data on the social enterprises they are representing. Data are collected from 4 biggest SEEOs, which unite more than 400 lavian social enterprises and organizations that work in the field of Social Economy.
Current Digitalisation Level
According to the survey, 62% of respondent organisations across 13 countries that participated in survey (Sweden, Italy, Spain, Lithuania, Latvia, Serbia, Croatia, Germany, Jordan, Belgium, Greece, Romania, Ukraine), reported an intermediate level of digitalisation. This means that digital tools are actively used in key processes, such as customer management and social media marketing. However, 30% remain at a basic level, with limited reliance on digital technologies beyond essential office tools. Only 8% of organisations have reached an advanced stage, where digitalisation is fully integrated into their operations with automation, cloud-based systems, and data-driven decision-making.
Latvian Social Enterprises in the Digitalisation Landscape
The findings of Survey detects that the situation in Latvia mirrors broader trends, where the majority of social enterprises operate at a basic or intermediate level of digitalisation.
The most commonly used digital tools among SEEOs and SE include:
- Email and communication tools (98%)
- Collaborative platforms such as Google Workspace and Microsoft Teams (90%)
- Social media and digital marketing tools (90%)
However, more advanced tools such as AI solutions (18%), e-commerce platforms (14%), and data analysis tools like Power BI (24%) are used only by a small fraction of respondents. This suggests that while basic digital tools are widely adopted, there is significant room for growth in leveraging advanced technologies, data-driven decision-making etc.
Digital Skills and Competences
A key factor influencing digital maturity is the level of internal digital competence within organisations. Among survey respondents:
- 46% reported having a tech-savvy workforce
- 42% stated that only a few staff members have digital skills
- 12% had no internal digital expertise
In Latvia, the limited number of employees with strong digital skills may hinder the digital transition of social enterprises. Moreover, the main digital competences found in organisations are basic IT skills (91%) and advanced office suite skills (73%), whereas data analysis (41%) and programming (14%) remain underdeveloped.
Challenges in Digitalisation
The survey identified several key barriers to digitalisation, including:
- Lack of internal digital competences (58%)
- High implementation costs (60%)
- Resistance to change (36%)
- Lack of connectivity or necessary infrastructure (30%)
For Latvian social enterprises, these challenges likely contribute to the slow adoption of digital tools and the reliance on basic, more commonly used technologies and digital tools or easier opensourced tools.
Priorities for Improvement
Survey respondents highlighted practical workshops and training (74%), access to subsidized software (68%), and personalized consulting services (58%) as the most valuable support measures for improving digitalisation.
Latvian social enterprises can benefit from similar initiatives, focusing on:
- Training programs to enhance digital skills
- Financial support for technology adoption
- Networking opportunities to share best practices
Best practices of Latvia
There are also excellent examples of successful and effective use of digital technologies in the social business environment of Latvia:
“Izipizi.lv” Latvia’s first food dispenser solution with a thermal regime suitable for food storage. The food dispenser stores products at +2°C till +6°C and -18°C. “Izipizi.lv” self-service postal machine is for receiving and sending parcels. There are currently 6 locations in Latvia where such a self-service postal facility for receiving and sending parcels can be found. The existence of such facilities helps businesses, Latvian home producers and others to reach their target audience interested in various rural products. How does it work? Parcels can be dropped off at the exchange point by a courier registered and approved on the app. And the assigned courier will deliver the parcel to recipient.
“Visas iespējas” (eng. “All Opportunities”) – a platform that helps young people find jobs. “Visas iespējas” is a social enterprise that brings together youth organisations and their projects in Latvia and around the world. The aim of the “Visas iespējas” platform is to allow every young person to find the opportunities that are right for them and to realise their potential. They are not only actively developing this portal, but also creating various actions and events.
The “Visas iespējas” platform offers a wide range of job vacancies, from those with no experience to those where experience is required. They have also developed the website Darbnesis.lv and the platform Darbe.lv through which it is possible to find vacancies in companies that interest you.
“Visi Var” (eng. “Everybody can”) has an online shop, convenient delivery, and in-person stores outside Riga. “Visi Var” is a social enterprise dedicated to promoting the employment of people with disabilities, their relatives and vulnerable groups. In this way, by creating online shop, the social enterprise is able to reach its target audience, those who want to support social entrepreneurship in Latvia and the association “Cerību spārni” (eng.”Wings of Hope”). This approach ensures that the things that are made can be bought quickly, easily and conveniently, instead of having to visit a shop. And of course, profits are invested in association “Cerību spārni”, angliski var pielikt klāt “Wings of Hope”charitable projects and social support, the creation of new jobs and the purchase of necessary equipment.
Association “Tavi draugi” (eng. “Your friends”) uses digital communication to raise funds for Ukraine.The charity association “Tavi draugi” provides assistance in Latvia and Ukraine by organising and coordinating the involvement of volunteers from Latvian citizens, organisations and companies. Today’s fast-paced digital environment is increasingly providing opportunities for social enterprises to take advantage of to communicate as well as possible with their target audiences. The analysis of advertisements, algorithms, target audience allows the association to adapt the way they communicate, what they communicate about, what needs to be given special emphasis.
In conclusion, the digital maturity of social enterprises in Latvia is still in its early stages, with many organizations relying on basic digital tools. While there is significant potential for growth, challenges such as limited digital skills, high implementation costs, and resistance to change hinder their progress. However, there are opportunities for improvement through training programs, financial support, and networking. By adopting more advanced technologies and developing internal digital competencies, Latvian social enterprises can enhance their efficiency, sustainability, and impact, ultimately contributing to the broader goal of social entrepreneurship. The examples of successful digital initiatives, such as “Izipizi.lv”, “Visas iespējas”, and others, demonstrate the potential of digital tools to improve services and reach target audiences effectively.
