In 2025, 51% of Latvian entrepreneurs indicated they were informed about capital market opportunities, reaching the highest indicator so far, while in 2026, this has decreased to 44%. Simultaneously, the proportion of entrepreneurs indicating they do not understand the capital market has increased – 30% compared to 24% in 2025. Meanwhile, the proportion of “hard to say” responses remained relatively stable – 26% this year, which is one percentage point more than in 2025. This trend can be explained by analysing entrepreneurs' level of understanding regarding capital market opportunities. Data shows that the main obstacle remains a lack of knowledge – 23% of entrepreneurs indicate they lack sufficient understanding of capital market opportunities.
At the same time, it is positive that traditional obstacles are gradually losing their significance – 16% mention administrative burden as a significant challenge, while costs and reluctance to publicly disclose information about the company are cited by 16%. The proportion of entrepreneurs who believe the capital market is too expensive has also decreased – 7%, and fewer entrepreneurs point to a lack of bank offerings as an obstacle (3%). This suggests that the capital market as an instrument is becoming more accessible and understandable from a practical standpoint.
However, a significant challenge remains – understanding. As capital market relevance and information volume in the public space grow, entrepreneurs' understanding becomes more nuanced, which in the short term may reflect as a lower self-assessment of their knowledge. This is also confirmed by the increasing proportion of “hard to say” responses (22%), as well as the “other” category (13%), which may indicate that some entrepreneurs have not yet formed a clear opinion on capital market use or face individual obstacles.
Have you heard about capital markets oppertunities with which to secure business funding?
Why are you not considering utilising capital market opportunities for company needs?
Availability of funding: perception influences action
Entrepreneurs' perception of funding availability can significantly influence their perception of capital market instruments. If raising funds in the next 12 months is perceived as difficult and marked by high uncertainty, it may promote more cautious behaviour and reduce motivation to actively seek and evaluate alternative financing sources, including the capital market.
Survey data shows that the difficulty of raising funds over the last 12 months is determined by a combination of factors according to entrepreneurs – banking policy (23%), bureaucracy and process complexity (20%), and the economic and geopolitical situation (20%). These factors create an environment where raising funds, in the eyes of entrepreneurs, becomes not only more complicated but also more time-consuming.
In such a situation, entrepreneurs more often focus on solving primary financing challenges rather than evaluating alternatives that require additional knowledge and preparation. Accordingly, the capital market is not always fully considered as a financing source.
Why, in your opinion, has it become more difficult to receive business financing in the last 12 months? (2026)
State support instruments still receive the highest rating
The highest level of awareness remains for state support instruments – ALTUM programmes are known to 70% of entrepreneurs, while other Latvian and EU support programmes – 44%. Conversely, capital market financing types are less known: 27% of entrepreneurs know about bond issuance, 26% about IPOs, and 35% about raising capital from funds. Compared to previous years, it is evident that awareness of capital market instruments is gradually increasing; however, it still significantly lags behind the awareness of state support instruments, which, along with the high share of “hard to say” responses, points to fragmented and uneven information distribution.
Overall, these data mark a structural trend – although the spectrum of financing opportunities in Latvia is objectively expanding, it is not always fully reflected in entrepreneurs' perceptions. Awareness still concentrates on traditional and state-supported instruments, whereas capital market solutions require more targeted explanation and education. Accordingly, capital market potential in Latvia largely depends on how successfully availability can be converted into practical understanding and real utilisation.
