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Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.

Factsheet for measure LT-2023-49/3485 – measures in Lithuania

Support for business creation

Parama verslo kūrimui

Country Lithuania , applies nationwide
Time period Temporary, 06 December 2023 – 04 January 2024
Context COVID-19, Green Transition, Digital Transformation
Type Legislations or other statutory regulations
Category Promoting the economic, labour market and social recovery into a green future
– Active labour market policies (enhancing employability, training, subsidised job creation, etc.)
Author Inga Blaziene (Lithuanian Centre for Social Sciences) and Eurofound
Measure added 27 February 2024 (updated 26 April 2024)

Background information

The aim of the measure is to support unemployed persons and currently employed persons willing to become self-employed. The measure is implemented in accordance with the Order of the Minister of Social Security and Labour of the Republic of Lithuania, the Minister of Economy and Innovation of the Republic of Lithuania and the Minister of the Environment of the Republic of Lithuania on priorities for businesses (job) creation support in 2023 (TAR, 2023-05-02, Nr. 8324). Funding is limited to applications that contribute to the digital and green transformation objectives, promote the circular economy or reduce the impact of COVID-19 (coronavirus infection). The Recovery and Resilience Facility is used for business support here.

Content of measure

Eligibility criteria for applicants:

  • Having participated in the business creation training on the business training platform "Business e-Guide" and have received a certificate of completion of the training.
  • On the date of submission of the application, being registered with the Employment Service as unemployed or employed.
  • In the period between the date of the declaration of the emergency on COVID-19 (from 26.02.2020) and the selected application date, the employment relationship has been terminated or the self-employed activity has been terminated at least once, and the person intends to carry out an activity other than the terminated one by creating a job(s).
  • Create a job for themselves or for themselves and the unemployed person(s) sent by the Public Employment Service in micro-enterprises, which they create not later than 3 months after the date on which their application was selected.
  • Created job(s) must meet the priorities for the provision of business support (job creation) set out in the Priorities Order (TAR, 2023-05-02, Nr. 8324).

The amount of the subsidy for one planned job may not exceed the sum of 31,00 times the minimum monthly wage approved by the Government of the Republic of Lithuania.

Use of measure

709 applications were expected to be selected for funding of up to €13.5 million from the EU's Recovery and Resilience Fund. The jobs will have to be created by July 2024. The economic return of the measure (through taxes paid after the jobs have been created and maintained for 36 months) is expected to reach €18.7 million.

Target groups

Workers Businesses Citizens
Applies to all workers Does not apply to businesses Does not apply to citizens

Actors and funding

Actors Funding
National government
Public employment service
European Funds

Social partners

Social partners' role in designing the measure and form of involvement:

Trade unions Employers' organisations
Role Informed Informed
Form Not applicable Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

  • Unknown
  • Main level of involvement: Unknown

Involvement

N/A

Views and reactions

N/A

Sources

  • 25 February 2024: Parama verslo kūrimui (uzt.lt)
  • 25 February 2024: Dėl paramos verslui kurti (darbo vietoms steigti) teikimo 2023 metais prioritetų, kurie padeda įgyvendinti skaitmeninės ir žaliosios transformacijos tikslus, skatinti žiedinę ekonomiką ir (ar) mažinti COVID-19 ligos (koronaviruso infekcijos) poveikį, nustatymo (www.e-tar.lt)

Citation

Eurofound (2024), Support for business creation, measure LT-2023-49/3485 (measures in Lithuania), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/LT-2023-49_3485.html

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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.