Business Diversification Opportunities for Small and Medium Enterprises in Latgale Region

Purpose and aim of the study: The present research aims to identify and assess business diversification opportunities for small and medium enterprises in Latgale region.Design / Methodology / Approach: The research also conducted an expert survey, and all the experts indicated that the introduction of new products/services is an important and very important opportunity for small and medium enterprises to grow. In addition, most of the experts indicated that implementing a diversification strategy by a company would contribute to reducing/diversifying risks thereto. Main Findings: The research identified the following disadvantages that could arise from business diversification: a decrease in quality (all available resources and attention are redistributed to several industries/products of diversification) and a lack of resources (human, technical and financial), depending on the kind of diversification strategy and the specifics of the company’s economic activities.Originality: The research gives insight into the theoretical aspects of diversifying the economic activities of enterprises and analysed development opportunities for small and medium enterprises in Latgale region.Implications: With the rapid growth of the market, small and medium enterprises need be able to effectively adapt to changing conditions, and consequently business diversification becomes important for such enterprises.