Economic mechanism of entrepreneurial development of the population in the regions of Georgia (საქართველოს რეგიონებში მეწარმეობის განვითარების ეკონომიკური მექანიზმი)

Abstract

Based on the experience of both Georgian and different countries in coordinating and supporting financial mechanisms for the development of the cooperative sector, it is possible to clearly define the main: the task cannot be solved empirically without considering the theoretical and methodological aspects of the problems and preparing appropriate foundations which is related to the creation of conceptual foundations of organizational-economic and financial mechanisms of development, qualitative changes in the financial environment, improvement of the investment environment, capitalization of labor and material resources, and balancing the economic interests of the state and the private sector, which is most effectively possible with the active support of the development of the cooperative system of entrepreneurial activities. Inadequate assessment of the importance of transformation in cooperative relations, insufficient understanding that the development of cooperation in the agricultural sector is the most important direction of state reforms and transformations; refraining from taking effective measures in this regard and sharing the rich experience of the countries with successful economies creates serious problems that negatively affect the effectiveness of rural and agricultural support measures, the effectiveness of investment capital, weakens the potential for efficient use of financial resources and make it virtually impossible to effectively use and capitalize assets. The purpose of the cooperative agro-credit system is to increase the efficiency of labor and material resources of its members. It is achieved through preferential and simplified lending terms, low interest rates and joint and joint liability. The experience of many developed economies proves that in a country like Georgia, it is practically impossible to succeed in the formation of this system without the support of the state. The introduction of progressive approaches focused on inclusive development in state support and regulation creates economic conditions for overcoming the obstacles that hinder the transformation of the agrarian sector into expanded systems of financial relations.