2. Business environment

The most popular business in Latgale is retail. Around one quarter of all registered legal entities state their business as some form of retail and in addition, almost 9% are working in wholesale trade. Almost half of all retailers are registered in Daugavpils and 17% are registered in Rezekne.

Other sectors include the production of crops, farm animal breeding, real estate trade and transportation services.

The most popular forms of business based on the turnover in 2013:

The most popular forms of business based on the amount of employees:

• Retail trade (25.59%);
• Wholesale trade (8.71%);
• Production of crops and farm animal breeding (6.26%);
• Transport and logistics (5.25%);
• Real estate trading (4.10%).

These are areas with the highest potential according to Latgale Region Development Agency:

• Metal processing and machinery: currently 38 companies with a turnover of EUR 80,906 thousand;
• Woodworking and processing industry: currently 83 companies with a turnover of EUR 90,686 thousand;
• Light manufacturing (including textiles): 21 companies with a turnover of EUR 27,497 thousand;
• Tourism: currently 37 companies with a turnover of EUR 10,800 thousand.