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.
Description
• Papava V. (2018) “ratom ver aghikvams dadebitad sakartvelos mosakhleoba ekonomikur zrdas” [“Why the population of Georgia does not perceive economic growth positively.” Georgian Foundation for Strategic and International Studies.] In Georgian • https://www.gfsis.org/ge/blog/view/888, 30.11.2018. • Papava V. (2009) sigharibis shemtsireba kerdzo sektoris ganvitarebis gzit [Poverty reduction through private sector development. Georgian Academy of Economic Sciences, Scientific works 7, Publishing Company “Novelty” 2009, p. 20 – 41.] In Georgian • CHAMARU DE ALWIS . The New Mechanism for the Performance Evaluation of Cooperatives, Advances in Finance and Accounting. April 2007; • Koguashvili P., Mamukelashvili D. (2019). sasoplo-sameurneo kooperatsiis ganvitarebis gamotsdileba msoplios skhvadaskhva kveq’anashi [Agricultural Cooperative Development Trends in Different Countries of the World. “Economics and business” N 2.] In Georgian • Koguashvili P., Mamukelashvili D., Ramishvili B. (2019). kooperatsiuli shidasatsarmoo urtiertobebi -- sasoplo-sameurneo kooperativis sitsotskhlisunarianobis sapudzveli. [Cooperative Domestic Production Relationships – The Basis for Agricultural Cooperative Viability. “Economics and Business” N1. pp.70-81.] In Georgian • Rosenquist B. (2016) Potential Assessment Report of the Agricultural Cooperatives Development Agency, EU Neighborhood Partnership Program for Agriculture and Rural Development (ENPARD), Europe Aid / 136454 / DH / SER / GE. January 2016.
Keywords
Socio-economic situation, anti-crisis measures, agricultural cooperation, entrepreneurial activation, manufacturing industry, cooperative agro-credit system
Citation
Economics and Business, №2, 2021, pp. 40-54
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