OPENNESS AND KNOWLEDGE AS LEADING TENDENCIES IN DEVELOPMENT OF MICRO ENTERPRISES

Abstract

Small and micro businesses are the key elements of market economy and most dynamic, flexible business sales form. Establishment and development of micro enterprises are a necessary condition for forming normal economic environment, what promotes manufacturing goods and competition between service companies. Micro enterprises are important source of work-places, create spirit of entrepreneurship and innovation in European Union and therefor are essential for strenghtening empoyment and competition. Lately there are heard a lot of speeches in media about importance of small and medium enterprises in the European Union and national level, but rarely are mentioned that most of these enterprises are exacly micro enterprises. Micro-enterprise is not a small version of a large company! Their legal condition, situation in market, opportunities of attracting financial means fundamentally differs from large companies. So approach in fostering development of micro enterprises has to be tailor-made for exact needs of micro entrepreneurs. Practice shows that micro enterprise managers often deal with problems, rather than foresees problems and plans solutions in advance. They lack knowledge (its world-wide problem of micro entrepreneurs!), skills and funding. State initiatives are formal, not connected to real micro entrepreneur`s needs and focused on the supply of financial resources, but part of knowledge and skills sometimes are of greater importance as it determines correct and effective use of money. Taking into account specific details of micro enterprises management, probably the best solution for getting knowledge is a partnership, openness to information from other micro-entrepreneurs and the power of cooperation. The article aims to analyze the specific features of micro-enterprises, their importance and resources fostering competitiveness, particularly highlighting two emerging trends in the world: focus on knowledge and openness in context of micro entrepreneurs and possibilities to adjust these tendencies to the needs of Latvian micro-entrepreneurs.

Study was performed by analyzing data, researching best practice examples, interviewing experts and exploring latest tendencies and recommendations in literature and scientific journals.

Research shows that Latvian micro enterprises lack cooperation between themselves, enterprises and research institutes and Univeristies and between micro enterprises and government institutions. Therefor partnerships are insufficiently used tool for creating knowledge-oriented business environment and have to be promoted between both entrepreneurs and researchers. Several changes have to be made to foster development of Latvian micro enterprises and ensure orientation to knowledge and innovation. First, there is need of paradigm change in minds of micro-entrepreneurs to promote openness and free knowledge flow instead of secrecy. Secondly, initiatives showing best practice examples and encouraging knowledge sharing and partnerships are needed. Thirdly, information of specific details of knowledge and other resource manegement in micro enterprises has to be outspread. Only keeping in time with newest and effective proved tendencies of the world can ensure orientation of Latvian micro enterprises to knowledge- inclusive economics.

DOI: http://dx.doi.org/10.5755/j01.em.17.4.3032