Just as farmers are sowing seeds in the spring and waiting for the autumn to come, so this spring, for the first time in the business incubator program, we have started to “grow” 74 innovative ideas from our diaspora in the hope of harvesting exportable products or services this autumn.
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In March, when announcing the admission of new participants to the Latvian Investment Development Agency (LIAA) business idea forges – incubators – the Latvian diaspora was addressed abroad for the first time, inviting to apply for an online pre-incubation or incubation program. We received an unexpectedly great response from compatriots abroad.
We have a world-class program, inspired by the business culture and working methodology of start-ups, and has been tested in practice over several years. Therefore, there was a desire to share it outside Latvia, giving compatriots anywhere in the world the opportunity to start a business in Latvia, thus maintaining a special connection with the homeland. The pre-incubation (PINK) program for the diaspora was created online for the first time. Given the popularity of the program, we plan to attract additional funding, although in the autumn, when the admission of new entrepreneurs to business incubators will take place, it would also allow diaspora business ideas to develop.
When we started this activity, we realized that reaching people outside Latvia all over the world, who have not heard anything about business incubation, will require a lot of work. Thanks to partners – advertising agency A.W.Olsen&Partners, the diaspora for the media latviesi.com, Latvian media, diaspora organizations and clubs, Latvian embassies abroad -, the program gained wide resonance. We saw that people are very interested in this program. A total of 71 business idea authors and teams from eight companies from 25 countries responded to the call, including from Canada, the United States, Switzerland, France, Croatia, Greece, Hungary, Italy, Turkey, Taiwan, Japan, Mozambique and South Africa. Among the diaspora applicants, 71 business idea authors have been admitted to the LIAA Business Incubator Online Pre-Incubation Program, which will refine their business ideas into a ready-made product prototype or service that can be offered to customers in six months, and three company teams in the incubation program.
How do the ideas of young Latvian entrepreneurs differ from the business intentions of diaspora representatives? This is a new, fresh, global view and offer of ideas from compatriots abroad, who know the export market (from Latvia’s point of view) “from the inside”, because they have lived there and learned about a business niche, have already established a certain circle of contacts abroad. Our local entrepreneurs, on the other hand, have to explore export markets remotely, and most do not have such real-life experience.
Of course, everyone wants the business idea to be ambitious and immediately feasible. However, it all depends on the young entrepreneur himself: what is his vision, ambitions and, of course, the business idea itself. We have realized that, starting with a seemingly small idea, it can turn into a business with at least half a million turnover a year in incubator programs.
We noticed that many of the ideas submitted by the representatives of the diaspora this spring actualized the possibility to live better and healthier, to integrate, to reduce everyday problems. These were health, wellness, quality of life services and products. For example, Sandra Āboliņa, who has just returned to Latvia from living in Hungary, will develop a platform to reduce the burnout syndrome, which is especially relevant during a pandemic, when the boundaries of work and home converge. Oleg Mironov in England is creating a platform where a user can create their own health care plan and accumulate or raise funds to pay for medical services. In order to jointly build a community that cares about people’s health, employers and medical institutions will also be involved in the flow of information about available services and current events in the field of health.
Many ideas of the diaspora came from working or studying the field abroad and seeing that the product could be successful not only for export, but also for the local market. For example, Anta Gulbe, who lives in Germany and has been working in the field of surveying for more than 15 years, wants to develop her business idea of further use, processing and application of drone data not only in surveying but also in other fields and industries, such as agriculture, forestry and solving ecological problems.
Kristine Botrosa, who studies music production in Sweden, thinks that Latvia, like Sweden, could become a music export power. She has the idea to promote Latvian art and design in world markets, creating it as a new trend, similar to Scandinavian laconic design. Liene Zagante from Italy, who is close to rock climbing, has decided to create a prototype for a special storage cabinet for expensive equipment, with a like-minded person and idea partner in Latvia, who in turn is familiar with the furniture industry.
Young entrepreneurs understand that these still “green” business ideas need to attract a team – one is not a warrior. When building a business abroad, the connection is formed by attracting Latvian people to the team, who help to implement the idea (raw materials are obtained in one country, but the product is produced in Latvia, etc.), or start developing it within this program, as well as the necessary support to hone the idea. to a product suitable for the customer. For example, Andis Simsons from Norway is developing the idea of a snow blower, but the technical solution, which could be exactly that, will be developed in this program, Jānis Dambergs, who lives in Germany, will also refine the idea of exporting a wooden tub and sauna. In turn, Ivars Bērs from Germany has decided to focus on the production of sparkling wines, using his bee honey kept in Germany and quinces grown by his brother living in Latvia. Researchers from Latvia are also involved in the development of the product, while the brother will also be a partner in the new company.
The LIAA pre-incubation program for the diaspora also acts as a facilitator of re-migration. At present, the diaspora abroad consists of relatively two groups: those who have emigrated relatively recently, and those who have already been born abroad and for whom Latvia is the homeland of their ancestors. This program allows Latvia to attract compatriots and is an incentive not only to come to visit relatives, but also to do business here or even move to Latvia to live.
We know a lot of people who are planning to move to Latvia or who have already done so this spring – from Canada, Japan, Hungary, England and other countries – and for them the program is a real opportunity to “land”. By already knowing what you will be doing, it is possible to find out the current situation in business. The community of young entrepreneurs, training, mentors, as well as support for business ideas available within the framework of the incubator program are purely practical things that are useful when starting a business in Latvia.
The Latvian market is small, therefore it is important to create export-capable, innovative goods or services that would be able to scale, grow and develop with world products. I am convinced that diaspora business ideas within this program will be a good addition to strengthening our country’s export capacity. In addition, this first experience of hosting diaspora business ideas will stimulate other compatriots abroad to strengthen ties with their homeland and develop business ideas in Latvia.
Let me remind you that there are 13 LIAA business incubators and 5 support units in Latvia. LIAA business incubators are a support program of Latvia and the European Union, which has been operating since 2016. It is the largest community of new companies and a network of contacts in Latvia with access to LIAA representative offices in 18 countries around the world. Participation in business incubator support programs is free of charge.
The aim of the incubator is to support the establishment and development of new, viable and competitive companies by providing individuals and companies with the necessary environment for starting and developing a business, consultations, training, mentor support and grant co-financing. The pre-incubation program is suitable for idea authors who are still on their way to their product or service, but the incubation program invites companies that have already developed their products or services and started to implement them.
Admission to LIAA business incubators is usually open twice a year – in spring and autumn. The next admission of new participants is planned for September 2021 or March next year. Information on support programs and events in LIAA business incubators is available on the incubators’ Facebook websites, as well as on the LIAA website https://www.liaa.gov.lv/lv/programmas/biznesa-inkubatori and https://inkubatori.magneticlatvia.lv/
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