Small & Medium Business

Seeking to promote business development the Small and Medium Business Development Fund was established in Palanga in the year of 2000.

The stimulation of small and medium business development, expansion of support for SMEs, developing business infrastructure, promoting the establishment of new working places and reducing unemployment, passing knowledge and news necessary for start and promoting Palanga both nationally and internationally as an attractive town for business development are among major goals of the Fund.

Palanga is a resort located in the western part of Lithuania on the Baltic seacoast, accommodating mostly small and medium size enterprises. Business development evolves around the development of tourism infrastructure, recast of fish and production of other products, and public service. Most developed field here is tourist services, namely hotels, cafes, restaurants, bars, etc.

As for January 1,2003 there were 1416 businesses registered in Palanga, but only 45% of them were actually operating. 20% of enterprises work seasonally only. In most cases, registered businesses (80 %) are individual enterprises, 16% small enterprises with 10-49 workers and only 4 % refer to medium size enterprises with 50-249 workers.

The activities of the Small and Medium Business Development Fund are implemented according to the Lithuanian Law and the programs for small and medium business development. 12100 Lt. were spent only in 2001, and a year later four times more for implementing various programs. Additionally ca. 38200 Lt. will be spent in 2003 for the purpose.

Seeking to promote infrastructure of holiday camps in Palanga, the City Council approved the order of taxation privilege for enterprises, which have the right and wish to render services of special type accommodation (holiday camps). There are also applicable privileges for rental payment of state's land for various economic-commercial and other activities.