Regional Formation and Development Studies

In recent years many countries have experienced stagnation or even decline in the amount of mortgage credits granted to households. The credit-granting process has become significantly complicated, less transparent and excessively time consuming. This study seeks to define the improvement opportunities for credit granting through creation of a simple, transparent and accountable framework of decision-making process. To achieve this purpose the authors used qualitative method – structured interview and graphical tools – decision tree. The developed framework makes it possible to identify areas of the credit granting that might have potential for considerable improvements. The empirical results of the study indicate that decision-making process in credit granting has considerable potential for improvements. The developed framework is supposed to help commercial banks to improve the quality and efficiency of the decision-making process in the credit granting and reduce cost of credit granting process. This is possible to achieve by cutting down the duration time of alternative solutions with negative outcome – credit denial. This research introduces a valuable framework of transparent and accountable model of decision-making process in the credit granting. The authors have found that the introduced framework is suitable not only for commercial banks but also for a wide range of organizations having similar complicated and multiple staged decision-making processes.

Recent developments of information technologies have supported fast development of Internet shopping worldwide and also using mobile devices. Internet shopping creates convenience for customers, bigger selection of goods and services from one side, but also creates several challenges for companies as well as some problems for companies and customers from the other side. Active research on different aspects is done by businesses, academic researchers alone and in co-operation of business and academic researchers. The aim of research is to find recent ideas of customers on Internet shops and problems raised in Internet shopping using mobile devices and to compare the results with other countries. The authors used the research methods such as: scientific publications’ studies, analysis of statistics on Internet shopping development, a survey realised in Latvia at the end of 2017 and the beginning of 2018 on Internet shopping in co-operation with the company iMarketing, University of Latvia, and Chamber of Trade and Commerce of Latvia. The main results and findings of the study, theoretical and practical implications are the following: the response rate of respondents was very high in comparison with other surveys, respondents have also expressed their suggestions and improvements for Internet shopping using mobile devices. The main conclusions of research: increase in Internet shopping in Latvia using mobile devices is not so fast as in other countries, mobile devices for shopping on the Internet are used not so often as in other countries; several local brands already having experience on Internet shopping encounter big challenges in development of Internet marketing; customers highly evaluate previous personal experience and good references of relatives and friends (word of mouth) in use of a respective brand for Internet shopping, but does not want to leave personal information (bank card information, personal code, etc.).

Social entrepreneurship is an important component of the European social market economy that is based on the principles of solidarity and responsibility and the priorities regarding the individual and social goals; it promotes social responsibility and social inclusion. However, in practice, social enterprises face various problems that negatively affect their competitiveness. The present research has set an aim to examine the competitiveness of social entrepreneurship in Latvia. To achieve the aim, a case study was carried out to identify the factors affecting the competitiveness of social entrepreneurship and its competitive advantages and disadvantages in comparison with conventional enterprises. The research found that the key competitive advantages of social entrepreneurship were the story told by social enterprises and their employee motivation, while the negative effects regarding competitiveness were as follows: the lack of government support for social entrepreneurship, insufficient information in society about social entrepreneurship and the social value created by it, as well as various other factors in the internal environment of an enterprise.

Social enterprises are crucial for Europe and its economy. These enterprises significantly contribute to job creation (especially for socially sensitive groups) and accounts for about 6 % of GDP across the European Union. In Latvia the role of social entrepreneurship is underestimated. The research aim is: based on the international experiences regarding social entrepreneurship, to determine economic gains of social businesses in Latvia. During the first year of developing social enterprises (2015) in Latvia, it is envisaged to establish 250 social enterprises, in which in total 1250 people will be employed, of which 50 % will be individuals from socially sensitive groups. Thus, the social benefit burden in municipalities will decrease by EUR 61 thousand, while almost EUR 222 thousand will be collected by the national government. The total gain from social entrepreneurship will amount to EUR 1.5 million over a six year period (2015–2020).

Within development of telecommunication, e-commerce is rapidly replacing traditional shopping as well as offering new ways to pay for goods. Payment is one of the main phases of buying decision process and it is crucial to e-commerce, because there is a big possibility that consumer will abandon the shopping cart if preferred payment method is not available. Not only flexible payment options can help company to attract and retain customers, but it also can ensure that company get paid more quickly. The aim of the research is to find out how much money Latvian customers invest when shopping online and which payment methods they use to pay for the purchase on internet in Latvia. Research methods used in the study are scientific publication studies, studies of statistics on internet shopping development, survey realised in Latvia at the end of 2017 and beginning of 2018 on internet shopping in co-operation with company iMarketing, University of Latvia and Chamber of Trade and Commerce of Latvia. For many aspects in evaluation of opinion of respondents it was used evaluation scale 1–10, where do not agree with the statement; 10 – fully agree with statement. For data analysis there were used indicators of descriptive statistics, cross – tabulations, statistical tests of hypotheses, analysis of variance (ANOVA) and correlation analysis. Main results and findings of the study reveals that the most commonly used payment methods for online purchases in Latvia are paying with debit or credit card at the moment of purchase and paying at the store, but the least used payment methods for online purchase is cryptocurrency and at the pick-up box place. Also, there is no statistical difference between female and male customers on use of credit or debit card usage for online payments.