Nearly half, or 47%, of small business owners have observed growing price sensitivity among buyers over the past six months, according to the latest small business survey conducted by Luminor bank*. At the same time, almost a quarter, or 24%, of business owners report that customers now expect higher value for the same price.

Asked how their customers' expectations have changed over the past six months, most small business owners point to customers' price sensitivity (47%) and to customers expecting higher value for the same price (24%), while 27% of small business owners have not observed any change in customer expectations.

“People's spending has become more deliberate – our surveys of residents also show that buyers compare prices more often, weigh up alternatives and consider more carefully whether a product or service delivers a better overall experience. At the same time, Latvia's economy continues to grow steadily, and there is no reason to expect a significant deterioration in household purchasing power.

That means it is becoming increasingly important for small businesses not only to offer a competitive price, but also to communicate their advantages clearly and give customers a good experience – quality, convenient service or other benefits that can set them apart from the rest. In the long run, the most successful businesses will be those that manage to strike a balance not only between price and value that is clear to the customer, but also the quality of their service,” says Uģis Počs, Head of the Small and Medium Enterprise Service Department at Luminor bank.

The survey data show that 14% of business owners are encountering customers' preference for digital or remote communication, while 8% notice a clear demand for faster and more convenient service.

Across the Baltic states, the most pronounced shift in customer expectations is seen by small business owners in Estonia – more than two-thirds (68%) report growing price sensitivity among customers, and a third report demand for higher value at the same price. In Lithuania, meanwhile, customer price sensitivity is similar to Latvia, with this trend observed by 46% and 47% of small business owners, respectively.

*The survey was conducted in May 2026 in cooperation with the research agency Norstat, polling a total of 750 heads of small businesses (up to 10 employees) in the Baltic states. Respondents were able to select multiple answer options for the question.