Adaptation to the Covid-19 crisis: case study analysis of social economy actors in Latvia

Covid-19 has affected the whole economy of Latvia, leading to various social and economic problems in the country. Social economy actors applying an innovative approach to solving social problems could make a significant contribution to improvement in social life, especially during the Covid-19 crisis and the post-crisis by supplying various services and products, helping the state to solve gaps that it cannot cope with without the help of the private or non-governmental sector. The research aims to describe the challenges faced by social economy actors in Latvia during Covid-19 and their responses to the crisis. The research employed case study analysis to describe the responses of 9 social economy organizations to mitigate the consequences of the crisis. The research found that Covid-19 had a negative impact on the performance of social economy actors faced by financial, organizational, social and psychological challenges, which overall did not significantly differ from those faced by other market actors in the particular situation. To solve the current problems in society and ensure their self-existence, social economy actors implemented an innovating strategy that focused on three priorities: new digital experiences, products and services in response to changes in customer behaviours and needs; development of new offers for a new or the current target group; new partnerships both within and outside the industry.