Latvia‘s economic future is increasingly reliant on a workforce equipped with adaptable skills, prompting a national conversation about modernizing education and fostering entrepreneurship. A new analysis highlights a widening skills gap within the country, with nearly one in five employees lacking adequate planning for their current roles and a continued outflow of qualified professionals [1]. this report examines the critical need to integrate practical, entrepreneurial training into Latvian schools and universities to bolster innovation and long-term economic resilience, drawing on triumphant models from nations like Finland and Estonia.
Zane Driņķe. Publicitātes foto.
Economic growth in developed nations, including Latvia, is increasingly tied to the quality of human capital and the ability to adapt to rapid economic and technological shifts.
A growing skills gap is emerging as a critical challenge for economies worldwide, impacting both individual opportunities and overall productivity. Analytical research indicates that future job market competitiveness will hinge on so-called “soft skills”—problem-solving, digital literacy, creative thinking, and initiative. Traditional education models focused on rote memorization are proving insufficient to meet the demands of a rapidly evolving business landscape.
The Organisation for Economic Co-operation and Development (OECD) emphasizes that skills imbalances in Latvia are creating significant costs for individuals, businesses, and the economy as a whole. A substantial portion of the Latvian workforce – 18% of employees – are considered inadequately prepared for their roles, contributing to a skills shortage exacerbated by emigration of highly qualified specialists. Declining population figures and demographic trends are intensifying this challenge, forcing companies to hire workers lacking necessary qualifications. These trends hinder long-term investment and impede productivity growth.
Entrepreneurship education, encompassing strategic thinking, foundational financial and digital skills, risk management, project leadership, and the ability to develop and implement solutions in real-world markets, is becoming increasingly vital. International best practices demonstrate that these skills aren’t developed organically; they require a deliberately structured learning process that balances theory with practical application, collaboration with businesses, and problem-solving methodologies. Analysis from the OECD and the European Commission reveals that countries systematically integrating entrepreneurship development into their education systems achieve higher innovation rates, more resilient labor markets, and more dynamic startup ecosystems.
Experience in higher education and the private sector shows that students involved in entrepreneurial projects and real-world business assignments demonstrate greater self-efficacy, improved teamwork skills, and increased flexibility in their career choices. Demand for these skills is rising, with employers increasingly prioritizing initiative, independent decision-making, and the ability to navigate complex problems over simply following instructions.
Global examples illustrate the effectiveness of this approach. Finland is developing entrepreneurial competencies across all levels of education, while Estonia has incorporated them into its digital and innovation strategy, fostering one of Europe’s most vibrant startup ecosystems. Latvia has the potential to follow a similar trajectory, but requires a consistent and systematic approach—from primary schools through higher education and lifelong learning. Developing entrepreneurial skills in education isn’t solely about creating new businesses; it also encompasses the ability to identify and solve problems in the public, private, and social sectors. These skills are linked to broader societal resilience: individuals with higher entrepreneurial capacity are more likely to participate in community initiatives, adapt to economic changes, and engage in civic participation.
To fully realize this potential, the education system must adopt practice-based learning methods—interdisciplinary projects, business leader involvement in the curriculum, simulations, and regular collaboration with industry. Initiatives like the “Entrepreneurship School” at Turība Business School, and the investment support programs offered by the Investment and Development Agency of Latvia (LIAA), already demonstrate this approach. Such learning environments allow students to test ideas, analyze failures as a natural part of development, and gain practical experience aligned with the demands of today’s job market and dynamic business environment.
Investing in entrepreneurship development is a direct investment in a nation’s long-term competitiveness. A flexible, proactive, and capable workforce is fundamental to innovation and sustainable economic growth. A country’s future dynamism and resilience will depend on the entrepreneurial spirit, initiative, and responsibility of its citizens.
The author is the rector and professor at Turība Business School.
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