Which alternative financing options have you heard about?
Please indicate which of the aforementioned alternative financing options you have used?
The Reluctance of Entrepreneurs to Adopt a Prominent Public Profile is a Potential Brake on Capital Market Development

When asked about the main reasons why entrepreneurs still desist from using the capital market, respondents indicated that this is due to an excessive administrative burden and a lack of knowledge. According to data from 2025, 20% of entrepreneurs cite the administrative burden as the primary obstacle, while 9% believe that the capital market is too expensive. Compared with 2023, the proportion of entrepreneurs who admit a lack of knowledge (from 23% to 20%) or choose the answer "hard to say" (from 20% to 17%) has slightly fallen, indicating a gradual increase in awareness. However, the capital market is still viewed as a complicated and less accessible source of financing.

Crucially, in addition to the main obstacles, some companies are reluctant to adopt a public and transparent profile – 6% of respondents admit they are not ready to talk about their company publicly. Among the reasons mentioned less often but nevertheless significant are concerns about disclosing financial information, reputational risks, loss of ownership control, and perception of the capital market as a bureaucratic solution. Together these aspects form psychological and perceptual barriers that significantly impede use of the capital market in practice.

Why don't you consider the opportunities offered by the capital market to serve your company's needs?

The survey data indicate that a change in culture and mindset is just as vital as improved regulations or the creation of financial incentives. As long as the business environment is built on closed and limited operations, the capital market cannot become the platform for a genuine breakthrough.

Although awareness is increasing, the potential of the capital market in Latvia is still being used minimally. The root of the problem not only lies in deficient knowledge or regulation, but also deeper – in the attitudes, culture, and perception of entrepreneurs. As long as the capital market is perceived as ambiguous, expensive, and bureaucratic, it is not going to become a breakthrough platform. Therefore, the development of the capital market is not possible without an astute strategic direction and the courage to change the paradigm of entrepreneurial thinking.