Small and medium business in Georgia and its institutions and promotion programs

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Ivane Javakhishvili Tbilisi State University Press
Small and medium business is a segment that has a significant impact on the development of the national economy, the growth of the competitiveness of the industry and the activation of innovation. Small and medium-sized businesses provide jobs and improve the welfare of the population. Accordingly, the pace of economic growth largely depends on the quality of functioning of small and medium- sized enterprises in the country. The article is devoted to the discussion of small and medium-sized businesses. The introductory part of the work is devoted to small and medium-sized businesses and their role in the country's economy. The next part analyzes the declared data of the State Statistics Service of Georgia on business forms on such economic indicators as: the number of employees, the number of employees, the average monthly salary of employees, trade turnover, output, direct foreign deliveries. investments. As can be seen from the statistical materials, in 2022 the entire business sector was affected by the pandemic. Small and medium enterprises were forced to reduce the number of employees. Due to the decrease in aggregate demand, the sector of small and medium businesses reduced the output of products, which was also reflected in the turnover rate. Some enterprises have had to suspend or cease operations due to strict regulations. The main part discusses institutions and programs for the development of small and medium-sized businesses. It is worth noting the reforms carried out by the government in order to promote small and medium-sized businesses. One of the outstanding and successful programs is ~Produce in Georgia~. With the help of similar programs, small and medium-sized entrepreneurs are given the opportunity to develop, which positively affects the economic growth of the country. Despite the improvement of the general business environment, in terms of small and medium entrepreneurship development, Georgia faces the same challenges as in many developing countries. The situation worsened during the pandemic. Therefore, the 2021-2025 strategy for the development of small and medium entrepreneurship aims to restore the positive trends that existed before the pandemic and to promote the further development of small and medium entrepreneurship. The last part presents the author's conclusions on this issue.
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Conference Proceedings: "The World Economy in the Post-Pandemic Period: Implications and Challenges", Tbilisi, 2023, pp. 25-31