Abstract
General factors, determining success of the business projects, are well described both in papers and textbooks. Still, the weight and relative importance of these factors could vary significantly within the business area, moreover, in some areas, additional factors should be considered, too. The medical devices (MD) sector is a typical example: the MD market is one of the most regulated, which increases MD production costs. Another feature of the MD market is the high role of public and insurance financing. Nevertheless, small and medium enterprises (SMEs) traditionally have played a crucial role in the development of new products in the MD industry. The present paper summarizes the peculiarities of the MD market and proposes a set of parameters that could be used to estimate the success of the investment projects in the MD sector in Latvia. Besides that, the paper reviews possibilities for Latvian entrepreneurs to find financial support for implementation of medical devices projects. At the moment, Latvian Investment Development Agency and state-owned loan company ALTUM are the most promising funding sources for SMEs. On the other hand, only 13 out of 23 crediting institutions and only one leasing company out of 10 have separate programs for SMEs.
Highlights
With recent advances in medical technologies, the longevity of human life continues to grow
Some restrictions may apply only to a certain class of medical devices (MD). This will be very important for the successful management and completion of the project, which is why this is indicated in the model as the first item
The presented model represents set of factors that could be used to characterize the success of the investment project on the medical device market
Summary
With recent advances in medical technologies, the longevity of human life continues to grow. With such increase in proportion of older people in the society, the demand for healthcare services continues to grow, too. Experts (Business Research Company, 2021; Precedence Research, 2021) foresee MD sector will grow at the rate 5 – 6 % toward 2027. All this expands the already wide list of prerequisites for the successful implementation of a business project in MD sector. The goal of the present paper is to add to these sources, outlining area – specific characteristics of MD projects and to develop a model of factors for assessing the success of an MD investment project
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