Small and medium business in Georgia and its institutions and promotion programs
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Date
2023
Authors
Journal Title
Journal ISSN
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Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
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.
Description
1. საქართველოს მცირე და საშუალო მეწარმეობის განვითარების 2021-2025 წლების სტრატეგია.
http://www.moesd.gov.ge/uploads/files/2017/ek__politika/strategia_2021_2025/mcire_da_sashualo_mecarmeo
bis_strategia_2021_2025.pdf ბოლო ნახვა 29.01.2023
2. საწარმოთა სტატისტიკური გამოკვლევა. https://www.geostat.ge/ka/modules/categories/326/sacarmotastatistikuri-
gamokvleva ბოლო ნახვა 29.01.2023
3. Ayyagari, M., Asli, D., & Maksimovic, V. (2007). Firm Innovation in emerging markets. World Bank Policy Research
Paper 4157. Washington: The World Bank.
4. Shiu, E., & Walker, D. (2007). New product market visioning in small enterprises. Journal of Small Business and
Enterprise Development, 14(1) 81-92.
5. http://www.dcfta.gov.ge/ge/international
6. http://www.economists.ge/storage/uploads/publication/1412290223091a66.pdf
Keywords
Citation
Conference Proceedings: "The World Economy in the Post-Pandemic Period: Implications and Challenges", Tbilisi, 2023, pp. 25-31