Strategies of the Development of Entrepreneurship and SME

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Table. 32.Ease of businessDoingBusiness2008 rankDoingBusiness2007 rankChange inrankDoing Business 18 35 +17Starting a Business 10 39 +29Dealing with Licenses 11 27 +16Employing Workers 4 4 0Registering Property 11 18 +7Getting Credit 48 62 +14Protecting Investors 33 120 +87Paying Taxes 102 103 +1Trading Across Borders 64 59 -5Enforcing Contracts 42 42 0Closing a Business 105 87 -18Source: World Bank Doing Business 2007 Report5.4.3. SME Support InfrastructureThere is no National agency for SME support. According to the Law under the PresidentDecree the Small Enterprise Coordinate Council and the Centre for Small and MediumEnterprise Development and Assistance (CSMEDA) have been created. These organizationssuccessfully coordinated SME support activities, however, in the recent past and currently it isnot operational.Business information, advisory and consultancy services:• Centre for Training and Consultancy• Centre for Enterprise Restructuring and Management Assistance (CERMA)• Business Link• Union Business LeagueMain institution of SME support mechanism1. BEESI2. Business Support Centre (BSC)3. Centre for Small and Medium Enterprise Development of Georgia (CSMEDG)4. Consulting and Training Centre (CTC)5. GCG Consulting6. GCG Law Office116
7. Pand TECHNOLOGIES8. Amaranda9. Akhaltsikhe Business Centre, Regional Non-government Organization10.Business Centre11.Intellect-Company12.Shore-Bank Consulting Service13.Association of Business Consulting organizations-Georgia (ABCO-Georgiaincludes 15 organizations in different regions)14.Association “Woman and Business15.Scientific –Technical Information and Economic Research Institute(TECHNINFORMI)16.Business Communication Centre (BCC)17.Georgian Investment Centre18.Georgian Export Promotion Agency19.Business Incubator (Association “Woman and Business”)The International Finance Corporation and BP, the two largest investors in the Georgianeconomy, recently launched the Georgia Small and Medium Enterprise (SME) Policy Project.The project aims to improve the business enabling environment in the country by streamliningregulation of the private sector. The Project is a three-year, USD1.5 million initiative. BP and itsoil and gas partners have contributed USD750,000 under the Regional Development Initiative(RDI). The Canadian International Development Agency (CIDA) has contributed USD250,000,while IFC is providing USD500,000. 415.4.4. Financing SMEsIn Georgia the banking sector is booming. However, Georgian SMEs continue to sufferfrom a lack of credit access opportunities. SMEs hold a very modest share of the bankingsector’s credit portfolio GEL 2.7 billion in 2006 to be exact – an annual increase of 55.5%.Meanwhile the curve of SME sector development is barely growing as only 5%-10% of potentialSME borrowers get bank credits.Obstacles to SME credit access in Georgia include the country’s underdeveloped stockand capital markets. Despite the staggering development of the banking sector, still there is abig gap between supply and demand as the credit portfolios of Georgian banks fall far short ofbeing able to provide financing to all those who seek it.Ketevan Sutiashvili, Credit Access Manager of the US Agency for InternationalDevelopment (USAID) financed SME Support Project states, that capital turnover of smallbusinesses fluctuates at around GEL 100,000, occasionally reaching GEL 500,000 per annum.Credits access is a big problem for them due to several reasons including incompetence andlack of professional know-how.First of all, SMEs often have little or no financial collateral to back their credits at banks.Secondly, they are not sufficiently competent to keep proper track of their business activities,which is accordingly reflected in their financial reports.“Most of them keep financial accounts in notebooks. Sometimes they look quite funny,they just write: ‘I sold this item and bought that item.’ They lack systematization as a rule. Formany of them starting a business is a matter of survival for their families. Therefore many41 IFC and BP Spur Small and Medium Enterprise Sector Development in Georgia, Tbilisi, 17 April 2öö6.117
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1. SME DECLARATION AND WORKING GROU
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While comparing the BSEC and EU doc
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cooperation with the United Nations
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GENERAL ASSESSMENT OF THE BSEC WG O
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“Armenia's new law introduces a n
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(iii)Share of the labor force of SM
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The following data represents some
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RankDocuments for export(number)Tra
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• Industrial zones/Business incub
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3.1.4. FINANCING SMEsProf. Dr. Sela
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• the loan is secured with movabl
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3.1.4.3. Mutual and loan guarantee
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introduction of e-signatures, only
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The Code of Conduct for Civil Serva
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Trading Across Borders Enforcing Co
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as with all non-governmental organi
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Bulgarian SMEs obtain additional ca
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• Project BG 2004/016-711.11.04 -
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usiness is not approaching them oft
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• Romanian citizens are recognize
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The preparatory project of the NDP
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• To support participation in eco
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In 2004, the National Institute of
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Incubators host on average 11 SME,
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Programs. The program is implemente
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development instrument is extremely
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accounting standards, including med
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corporations and open held corporat
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promoting SME sector, cooperation w
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• for unemployed (micro credit)
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are private pension funds, broker h
Page 66 and 67: very early steps of its democratic
Page 68 and 69: Another negative factor that is mor
Page 70 and 71: economy. The so called in the organ
Page 72 and 73: Federal funds, private capital, esp
Page 74 and 75: 4.3. MOLDOVATable 14.Dimensions Neg
Page 76 and 77: Related andsupportingindustriesDome
Page 78 and 79: Technological:Internetaccessibility
Page 80 and 81: Domesticdemand• Still not many pe
Page 82 and 83: international investments• Govern
Page 84 and 85: 3. Hamel, G., Prahalad, C.K. (1994)
Page 86 and 87: 5.2 DEVELOPMENT OF THE SME SECTOR I
Page 88 and 89: General Characteristic of SME Devel
Page 90 and 91: Index of SME Development in Armenia
Page 92 and 93: The same problem exists in getting
Page 94 and 95: SME support infrastructure in Armen
Page 96 and 97: 5 million was provided by UNDP and
Page 98 and 99: 5.3 DEVELOPMENT OF THE SME SECTOR I
Page 100 and 101: Diagram 1. The number of small ente
Page 102 and 103: The privatization process of object
Page 104 and 105: 13.Cabinet Provision on “Distribu
Page 106 and 107: 5.3.3. SME support infrastructure i
Page 108 and 109: The role of the state in technical
Page 110 and 111: General situation of credit marketT
Page 112 and 113: After creation and starting impleme
Page 114 and 115: At the meantime, small enterprise s
Page 118 and 119: people who start small businesses t
Page 120 and 121: are salaried and the medium - sized
Page 122 and 123: Technology Foresight in Greece 2001
Page 124 and 125: Greek VC market started to develop
Page 126 and 127: In the area of bankruptcy and restr
Page 128 and 129: enterprises. According to TURKSTAT,
Page 130 and 131: small size enterprise or micro ente
Page 132 and 133: industrial enterprises. Undersecret
Page 134 and 135: individuals, rather than well struc
Page 136 and 137: 7. SUGGESTIONS FOR THE SME DEVELOPM
Page 138 and 139: Annex 1.MAP OF THE BLACK SEA COUNTR
Page 140 and 141: 17-18 June 2005 1 st Moscow Interna
Page 142 and 143: ARMENIASTRENGTHS• Application of
Page 144 and 145: BULGARIASTRENGHT• Flexibility and
Page 146 and 147: GREECESTRENGHT• They have a vital
Page 148 and 149: ROMANIASTRENGHTWEAKNESS• Stabilis
Page 150 and 151: REPUBLIC OF SERBIASTRENGHT• Longe
Page 152 and 153: UKRAINESTRENGTHS• Well educated l
Page 154 and 155: In compliance with the Resolution m
Page 156 and 157: 1. Please provide definition of SME
Page 158 and 159: 7. Did you establish a dedicated bo
Page 160: 11. Do you have any suggestions for
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