Startups as social actors in small open economies: evidence from the Baltic States

Startups have become a central element of economic development strategies in small open economies, particularly in Central and Eastern Europe.Existing research predominantly conceptualizes startups as instruments of innovation, economic growth, and international competitiveness.However, this economocentric perspective tends to overlook the social functions of startups and their role in shaping institutional and relational environments.This article addresses this gap by conceptualizing startups as social actors embedded in networks of social, institutional, and communicative relations.The study aims to analyze how startups perform social roles in small open economies, using the Baltic States -Latvia, Lithuania, and Estonia -as an empirical case.Methodologically, the article combines a qualitative comparative approach with document analysis of policy frameworks, ecosystem reports, and secondary empirical studies.The analytical framework draws on insights from economic sociology, institutional theory, and the literature on entrepreneurial ecosystems.The findings demonstrate that startups in the Baltic States function not only as economic entities but also as intermediaries between the state, the market, and elements of civil society.They contribute to the formation of entrepreneurial communities, the accumulation of social capital, and the reproduction of hybrid institutional arrangements characteristic of small open economies.At the same time, the study identifies ambivalent effects of startup development, including risks of social and regional concentration.The article contributes to comparative economic research by integrating social and institutional dimensions into the analysis of startups and offers policy-relevant insights for the design of more inclusive startup support strategies in small open economies.