According to Lursoft data, more new companies were registered in Latvia in 2024 compared to the previous year. However, the number of companies being liquidated has also increased. Notably, around 1% of all newly registered businesses in 2023 ceased operations within their very first year—a trend that has remained consistent for several years. “We observed the same pattern in 2023,” notes Sanita Bērziņa, CEO of Venipak Latvia.
Why Do So Many Startups Fail So Quickly?
Research shows that the main reasons why companies go out of business within the first year include:
- Financial difficulties – insufficient cash flow to cover monthly expenses, especially in the initial months.
- Poor business planning – lack of a clear strategy, financial plan, or marketing approach.
- Limited knowledge and experience – new entrepreneurs often lack skills in finance management, sales, customer service, or team leadership.
- Overspending or excessive investment at the start of operations.
- Lack of flexibility to adapt to real market conditions.
- Weak team dynamics or internal conflicts.
- Ineffective communication and marketing – potential customers simply don’t know the business exists.
Retail and Wholesale Sectors Hit the Hardest
Year after year, the highest proportion of liquidated companies are in the retail and wholesale sectors.
“Since the pandemic, delivery quality has become a key differentiator in these industries. Even if a business has a physical store, offering delivery has become almost a mandatory service,” explains Sanita Bērziņa.
“Office rent, staff salaries, marketing costs – these can be a heavy burden for young entrepreneurs. That’s exactly why we launched a support initiative to help businesses get through their critical first year,” she adds.
Introducing the “Venipak Accelerator” – A Support Program for New Businesses
Venipak Latvia has launched a dedicated support program for young businesses (up to 3 years old) – the Venipak Accelerator.
Applications are open until July 18, 2025, and entrepreneurs can apply here.
Participants will gain access to:
- Exclusive delivery rates – for the first 6 months, deliveries will cost just €1.29 per parcel, followed by a 15% discount for the next 6 months.
- Mentor support – consultations with experts in e-commerce, marketing, and sales strategy.
- Brand visibility – promotional exposure across Venipak’s communication channels.
“There are many mentoring programs and business incubators in Latvia, but our project stands out because it provides real, practical support. Mentoring is just one part of it,” says Sanita Bērziņa.
“We also help raise brand awareness using our channels – social media, website, press coverage – and offer exclusive delivery conditions that help businesses save significantly in their most vulnerable early stage.”
She continues: “Fewer cancelled orders means higher customer loyalty. Buyers tend to return to businesses where they know their order will arrive the very next day. That’s why 98% of deliveries within the Venipak network reach recipients on the next working day – a crucial benefit for both businesses and consumers.”
Applications for the Venipak Accelerator are open until July 18.
After the selection process, the most promising companies will be invited to join the program and receive year-long hands-on support from Venipak Latvia mentors, logistics and courier service specialists, as well as marketing and PR experts.