Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
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- training <strong>of</strong> specialists (improvement <strong>of</strong> activity <strong>of</strong> vocational training schools, training <strong>of</strong>students in foreign institutes using <strong>the</strong> state financial budget, training <strong>of</strong> managers in EUcompanies, etc.).4. With <strong>the</strong> purpose <strong>of</strong> improvement <strong>of</strong> <strong>SME</strong>s financial supply:- to increase <strong>the</strong> volume <strong>of</strong> financial contribution from <strong>the</strong> state budget to <strong>the</strong> NationalFund for Support to <strong>Entrepreneurship</strong>;- to stimulate <strong>the</strong> commercial banks to make <strong>the</strong>ir financial recourses available for <strong>SME</strong>s;- Stimulation <strong>of</strong> leasing activity;- <strong>Development</strong> <strong>of</strong> stock exchange.5. With <strong>the</strong> purpose <strong>of</strong> development <strong>of</strong> state - entrepreneur relations <strong>and</strong> improvement <strong>of</strong>protection mechanism <strong>of</strong> entrepreneurs’ rights:- prevention <strong>of</strong> state <strong>of</strong>ficials from engaging with <strong>the</strong> entrepreneurial activity;- protection <strong>of</strong> entrepreneurs’ rights at courts.6. With <strong>the</strong> purpose <strong>of</strong> streng<strong>the</strong>ning <strong>the</strong> foreign economic activity <strong>of</strong> entrepreneurs:- to guarantee <strong>the</strong> transparency in export–import operations;- to increase <strong>the</strong> efforts for acception to WTO.5.4 DEVELOPMENT OF THE <strong>SME</strong> SECTOR IN GEORGIA 37Georgia has passed <strong>the</strong> first <strong>and</strong> <strong>the</strong> hardest stage <strong>of</strong> its economic reforms – legaldismantling <strong>of</strong> large part <strong>of</strong> state property <strong>and</strong> privatization. State property was privatized;financial, monetary <strong>and</strong> banking systems were changed. Amendments made influence on everyeconomic <strong>and</strong> social institute.Georgia's economic performance continues to be strong, but signs <strong>of</strong> overheating arebeginning to emerge. Economic growth during <strong>the</strong> first six months <strong>of</strong> 2007 was 12.5 percent,which is impressive given <strong>the</strong> external shocks associated with Russia's economic embargoalong with higher energy <strong>and</strong> food prices. Growth for 2007 as a whole will likely be in <strong>the</strong> range<strong>of</strong> 12-13 percent. It seems likely that private capital inflows will exceed USD 2 billion in 2007,although recent political developments add considerable uncertainty to <strong>the</strong> projected volume <strong>of</strong>inflows for <strong>the</strong> remainder <strong>of</strong> this year <strong>and</strong> 2008. 38In spite <strong>of</strong> <strong>the</strong> high interest for foreign direct investment <strong>and</strong> international race amongcapital investors to getting in, <strong>the</strong> Georgian Government still neglects <strong>the</strong> <strong>SME</strong> sector, whichresulted in growing unemployment, poverty <strong>and</strong> corruption.The USAID estimates <strong>the</strong> shadow economy in <strong>the</strong> country between 26-35 percent. 395.4.1. <strong>SME</strong> sector development<strong>SME</strong> sector has an important role in creating <strong>and</strong> functioning <strong>of</strong> market economy inGeorgia. This sector is one <strong>of</strong> <strong>the</strong> priorities in <strong>the</strong> state economic policy. Great efforts havebeen done to promote institutional base <strong>of</strong> <strong>SME</strong> sector, increase <strong>the</strong> efficiency <strong>of</strong> <strong>SME</strong> supportsystem <strong>and</strong> improve investment friendly environment as well.37 Prepared by Dr. Antal SZABÓ, UN ret. Regional Adviser on <strong>Entrepreneurship</strong> <strong>and</strong> <strong>SME</strong>s, Scientific Director <strong>of</strong>ERENET38IMF Press Release No. 07/258 as <strong>of</strong> 14 November 2007.39 Georgia Enterprise Growth Initiative. <strong>SME</strong> Environment Assessment, 14 February 2005.111