Lately the number of the registered micro-businesses has increased at a staggering rate. This has been a tremendous boost for Latvian economy. Nonetheless, while there are multiple positive aspects of this legal status, the CEOs must be aware that there is also a number of disadvantages.

One of the main drivers of the bloom of micro-business is the willingness to legalize economic activity and profits. As the status of micro-enterprise allows considerably lower tax and simpler accounting rates, this seems to be a good option for many entrepreneurs, previously inclined to avoid tax (or any) authorities.