Bankruptcies can have a devastating impact on other companies in the value chain, on local communities, on public finances, and on the company owners, their families and their employees. Preventing a bankruptcy is crucial in order to help the business community, avoid job losses and improve public finances. It is also a key to promote social stability by saving local communities, families and company owners from economic, social and mental problems. Furthermore, bankruptcy has an important secondary effect on entrepreneurship as many entrepreneurs do not start a company because of their fear of the consequences of business failure.
The Restart BSR project brought together innovation actors in Estonia, Latvia, Lithuania and Poland, offering innovation support to SMEs experiencing stagnation and heading towards bankruptcy. Apart from restarting businesses onto a new path of growth, the project kicked off policy dialogue to support innovation and growth of companies facing stagnation or financial distress in the Baltic Sea region.
0.00MillionEni + Russia
Mapping clarifies the status
The partners from Poland, Latvia, Lithuania, and Estonia carried out a series of tests with 40 selected companies (10 from each country). This way the project piloted tools for design-driven innovation that the business consultants and mentors can use when supporting companies in financial difficulties and “restarters”.
Through a series of national events and interviews with national decision-makers, the project partners conducted a state-of-play analysis of the involved countries in the Baltic Sea region on the challenges and barriers facing financially distressed and restarting companies. These challenges included legal barriers, access to finance, social stigma, and others. In addition, the project reviewed and compared the local policies and legal frameworks, as well as support measures regarding non-technological innovation, crisis management, and second chances. Thus, Restart BSR
addressed the lack of an “innovation dimension” in the existing crisis management and second chance approaches. Combining design thinking with actual experiences, the project made a comprehensive publication for business supporters, mentors, and policy-makers.
Supporting toolkit is developed
As a result, the RESTART Baltic Sea Region Roadmap was prepared, providing an overview of the economic situation as well as policies and initiatives relevant to companies in financial distress in Poland, Estonia, Latvia, and Lithuania. In addition to that, the partners prepared guidelines and future recommendations for policymakers on how to build and strengthen the institutional ecosystem to support companies in financial distress.
Besides, the Latvian partners joined the Early Warning Europe network.
RESTART Baltic Sea Region - innovation tools, roadmaps & policy manual
Lower Silesian Intermediate Body
- RepresentativeRobert Hadaś
Design School Kolding
- RepresentativePernille Thøstesen
Vilnius Gediminas Technical University
Latvian Technological Center Foundation
- RepresentativeInts Viksna
Ministry of Economics of the Republic of Latvia
- RepresentativeAgnese Šķēle
Harju County Entrepreneurship and Development Consultancy