Strategic positioning and the importance of communication for startups in Latvia

The research aims to perform a complex analysis of startups to identify external and internal factors in the development of startups in Latvia, the strategic positions of startups and future action strategies thereof. The research employed various methods, including monographic and descriptive; graphic; expert interviewing and pairwise analysis for identifying the main factors included in a startup survey questionnaire; surveying that gives insight into self assessments of the situation by startups and the Strategic Position and Action Evaluation Matrix (SPACE) that helps to identify the strategic position and identify future action strategies for startups. The research analysed in detail only two fields of economic activity of startups: fintech and healthtech. The research revealed that the main problems for startups involved insufficient market research, a lack of financial resources and improper strategic planning. The strategies proposed by the research are aimed at diversifying product and service development by startups, optimizing costs and increasing competitiveness, focusing on digital transformation and innovation. An effective communication strategy is one of the most essential prerequisites for successful business for startups. The research contributes to an assessment of external and internal factors in the performance of startups in Latvia and to the identification of strategic positions, thereby suggesting strategies for national startups to improve their strategic positions and actions in the market. The research results are important for both current startups and those individuals who plan to start their businesses.