2025 POLICY ROADMAP

Access to international markets for Lithuania’s new entrepreneurs is improving. Around one‑third of Lithuania’s SMEs sell online, above the EU average of about one‑fifth, and a significant share of these online sellers’ export to foreign markets. At the same time, the combined enterprise value of Lithuanian start‑ups increased 7.1‑fold between 2018 and 2023 to about EUR 13.7 billion. Together, these indicators suggest that, despite short‑term fluctuations in trade flows, the structural conditions for Lithuanian start‑ups and small firms to reach international markets are getting better.

In terms of policy changes, a new Investment Account regime for individual investors allows deferral of personal income tax on reinvested investment income, to stimulate private investment into startups and SMEs. Licensing for many fintech and other financial firms can now be handled fully online, reducing documentation burdens while aligning with EU standards. At the same time, labour‑migration rules have been tightened: with a new annual quota for third‑country workers accompanied by stricter residence‑permit requirements.

2025 Framework Conditions Review 

Lithuania’s entrepreneurial environment remains robust in 2025, with a National Entrepreneurial Context Index (NECI) score of 6.4, essentially unchanged from 2024. This NECI score is a measure of the overall quality of the entrepreneurial environment, as assessed by that  national experts. Lithuania ranks fourth globally (among 53 GEM economies), maintaining a strong position among high-income economies. 

National experts scored all 13 framework conditions at 5.0 or higher, indicating a comprehensive and supportive environment for entrepreneurship. The highest scoring conditions include Physical Infrastructure (7.7) and Commercial and Professional Infrastructure (6.8), as well as Government Entrepreneurial Programmes and Entrepreneurial Education Post-school, (both 6.6). In the year to 2025, 6 conditions improved their scores, though most changes were marginal, while seven conditions had lower scores, including Physical Infrastructure (from 8.2 to 7.7) and Government Policy: Support and Relevance, (from 6.1 to 5.7).

Despite these shifts, Lithuania’s overall entrepreneurial environment remains strong and balanced. For example, all thirteen of Lithuania’s framework conditions rank in the global top ten among the 53 GEM economies, with the highest ranked being both Education conditions and Ease of Entry: Burdens and Regulations (all three ranked 2nd), while the lowest ranked is Government Policy: Support and Relevance (10th).

Lithuania demonstrates commitment to sustainability and responsible business practices, with new and growing businesses perceived prioritisation of sustainability scored at 6.4, while their awareness of the need for AI solutions scored an exceptional 7.7.

Lithuania continues to offer a highly supportive entrepreneurial environment in 2025, with all framework conditions scoring above 5.0 and all ranking in the global top ten. The country scores well in sustainability and responsible business practices. However, challenges remain in enhancing institutional support for AI adoption. Overall, Lithuania remains a strong performer in the GEM framework, with a balanced and forward-looking entrepreneurial ecosystem.

2025 Entrepreneurial Activity Review

Entrepreneurial awareness is high in Lithuania, with seven out of ten adults knowing someone who has recently started a business. More than one in two adults see themselves as having the skills or experience to start a business of their own, or see good opportunities to start a business locally, while nearly a half of these would not start that business for fear it might fail. Nevertheless, business intentions are high, with more than one in four adults expecting to start their own business in the next three years.

The proportion of adults actually starting or running a new business in Lithuania has increased rapidly in recent years, from 7% in 2023 to 12% in 2024 and then to 17% in 2025. The proportion owning an established business is a much lower, reaching just 5% in 2025. Men are more likely to be starting a new business then women.

More than two in three new entrepreneurs agree with the motivation “to build great wealth or very high income”, while just under one in two expect to use more digital technology to sell their product in the next six months. One in ten anticipates employing more than an additional five people in the next five years. In contrast to many other economies, the proportion of new Lithuania entrepreneurs with customers beyond their own country has increased, from one in three in 2024 to more than one in two in 2025. Around three in five new entrepreneurs claim to have acted to reduce environmental impacts or maximise social impacts in the past twelve months, with slightly fewer report prioritising such impacts over profitability or growth.