Stockholm “A skin care product has to be so good that you could eat it” – Lotte Tisenkopfa-Iltnere from Latvia knows what she is talking about. In her teens, her skin was allergic to some cosmetics. There were intolerances to chemical substances that can be found in almost all cosmetic products.
Since the Latvian was interested in healthy food, environmental protection and “generally in sustainability issues” at the same time, the idea arose to found a company for sustainable cosmetics together with her sister and a few friends.
Before that, Tisenkopfa-Iltnere had to do intensive research and hire specialist staff. “We were just crazy young girls,” she remembers when Madara Cosmetics was born. Almost exactly 15 years ago, the company started in Marupe, a suburb of the Latvian capital Riga. The early years were difficult, the founder admits.
“I wanted to develop organic skin care products, it was a personal interest,” said the now 38-year-old in an interview with Handelsblatt. “I was interested in sustainable living long before the topic came up on the agenda.” That wasn’t always easy, she smiles. “I sometimes drove my family crazy with all my demands regarding nutrition, environmental awareness and so on.” But the resolute Latvian prevailed and even got help from the family in setting up what was then still a small company.
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Tisenkopfa-Iltnere now runs a successful company with 160 employees. Madara develops, produces and sells the entire range of modern cosmetics and body care products, from organic mascara to skin care products and lipsticks, to shampoos and baby creams.
But she has long since developed her business model. Because Madara offers other companies the opportunity to start their own beauty brand. A subsidiary of Madara takes over the contract manufacturing. “We have one of the most modern factories in Northern Europe,” reports founder Tisenkopfa-Iltnere proudly.
Madara is now active in 26 countries
Your company is now active in 26 countries – mostly with its own subsidiaries. Then there is the global online shop. Last year Madara made 16 million euros in sales – an increase of almost 40 percent over the previous year. Compared to the big players in the industry, that is still not much, the entrepreneur also admits. But she sees clear upside potential. The profit even increased by 120 percent compared to 2019.
And the company is the pride of the small Baltic country. The Latvian edition of Forbes magazine selected Tisenkopfa-Iltnere as one of the ten most successful women entrepreneurs in the country. “When Madara started everyone wanted to work here,” says one employee. “It was really difficult to get a job with them.”
Tisenkopfa-Iltnere can confirm that all beginnings are difficult. “We started with very little money,” she recalls. When asked whether there was government aid, she replied that there was a support program for women entrepreneurs “so that we could buy the first laboratory equipment”.
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In addition, in the past few years, with the “Riga Tech Girls”, the “SheXo Club Latvia”, the consulting firm Deloitte and the association “Lidere”, several organizations have emerged that help women start a business.
Around 40 female managers and company founders meet regularly in the SheXo Club, exchange experiences and also give women tips about setting up a company. The Riga Tech Girls provide mentors from home and abroad and offer online courses, especially in the IT sector. Lidere supports women entrepreneurs through mentoring. Overall, the conditions for female company founders are not bad in small Latvia with only 1.9 million inhabitants.
There are fewer regulations for companies in Latvia
Nevertheless, the Madara founder emphasizes: “You have to take the initiative yourself, but the support from the government was important in the beginning.” According to a study by the Organization for Economic Co-operation and Development (OECD), Latvia ranks sixth among the countries with the most Female founders.
11.3 percent of all companies there were founded by women. Germany only comes in 19th place with 5.3 percent. Joachim Veh from the German-Baltic Chamber of Commerce in Riga is not surprised. “The fact that more women work as entrepreneurs or in managerial positions in Latvia has more to do with historical and cultural backgrounds,” he says. “During the Soviet era there were hardly any classic women and men jobs.”
The role of a “housewife” was also not politically desired during the Soviet occupation. Tisenkopfa-Iltnere can confirm that. The success of many women is based on Latvian culture, she says. “Couples have been on an equal footing with us for a long time. Man and woman are partners. Sure, we also have gender roles. But maybe not as pronounced as in other countries. ”She herself sets a good example: In her limited free time, the mother of three and company boss is involved in an NGO against domestic violence and human trafficking for the purpose of sexual exploitation.
The Madara founder also sees another reason why Latvia has a comparatively high number of women company founders. “It’s easy to start a business in Latvia,” she says. The administration is not over-bureaucratized, not over-regulated. “You can do a lot of things digitally.” Similar to neighboring Estonia, a new company can be registered online within a few minutes. “Here with us it takes about ten minutes,” she laughs.
Can Germany learn something from Latvia? “We have subsidiaries in several European countries. That’s why I have the comparison: There are fewer regulations for companies in Latvia, ”she explains. In Germany she still has to go to the authorities personally, i.e. be on site. “Then there is all the paperwork. It’s all very complex. ”On the other hand:“ As soon as you understand the system in Germany, you can be sure that it will work. ”
Tisenkopfa-Iltnere, who has meanwhile studied Asian culture and business management in Osaka, Japan, would like young people to learn more about business and economic interrelationships at school. “There is still room for improvement here in Latvia.”
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