Rural Area of Vidzeme, Latvia: Knowledge Management in Micro Enterprises

Ieva Krumina, Gatis Krumins, Sarmite Rozentale


Purpose. The main purpose of the paper is to investigate smartness of Latvian micro enterprises in rural areas, analyse knowledge management issues in micro enterprises and develop proposals for micro entrepreneurs in Latvian region Vidzeme rural areas what allow smart, inclusive and sustainable growth.

Methodology. Study was performed by analysing statistical data, researching knowledge management theoretical issues in micro enterprises exploring latest tendencies and recommendations in literature and scientific journals.

Results. Vast majority of micro enterprises in Vidzeme rural area focus insufficient attention on knowledge management issues. By changing approach and using latest theoretical discoveries of the site, Vidzeme rural area`s micro enterprises could prosper and flourish developing greater value for Latvia. Development of micro enterprises provides economic growth, new work places and creates prosperity. In conditions of highly centralized population distribution in Latvia development of rural areas is top priority. Unfortunately exactly most micro enterprises in rural areas are not knowledge-inclusive, facing different challenges and lacking basic knowledge management skills and tools.

The theoretical contribution. The value of the paper lies in covering governmentally very important area, underestimated and seldom investigated by researchers. Micro enterprises cover 92.3% of all the enterprises in Vidzeme and small enterprises another 6.4% clearly showing focus must be there. Adding increasing interest in knowledge as main factor of enterprise`s development and development as indicator of growth, it is surprising these factors are rarely viewed together in one research, focused on rural area.

Practical implications (if applicable). This paper gives insight in need of knowledge management for micro entrepreneurs in Vidzeme rural area. Suggestions are developed on fostering smart and sustainable micro enterprise growth. Latvian rural area faces new challenges: rapid depopulation and increasing role of modern technology. Understanding role and processes of knowledge management promotes growth possibilities of small sized enterprises. It is exceptionally challenging to foster smart, inclusive and sustainable growth of micro and small enterprises in rural areas of Latvia.

Keywords: knowledge management, Latvia, micro enterprises, rural area, Vidzeme.

Paper type: Theoretical paper.


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