Strategies of the Development of Entrepreneurship and SME

GEORGIASTRENGTH• The State Minister Office on SME field thatworks directly on SME problems,development and programs;• Basic Law on SME Support and Programfor 2002-2004;• International organization assistance forharmonizing SME policy with EUcommunity SME policy and supportprograms;• High level of entrepreneurial ability ofpopulation and desire to have their ownbusiness;WEAKNESS• High external debt with weak public finances;• Weak information-consulting services havelow efficiency;• Weak development of enterprises in theregions;• Low demand on domestic market;• Lack of access to credit resource;• Lack of support measures for start-ups;• Lack of business experience and efficiency ofSME support institutions;• Lack of business incubators;• Lack of budget resources;• Low level of competitiveness and qualityconsciousness of SMEs;• Large share of “shadow” economy;• Lack of business insurance system;OPPORTUNITIES• The current political leadership might createfavourable environment for SME promotion;• Favourable geographical location that makesbusiness cooperation attractive in the SouthCaucasus region and with neighbouringcountries;• Attractive environment for tourismdevelopment;• Development of SME regionalinfrastructure;• Membership of Georgia to World TradeOrganization (WTO) enhances theopportunities of SMEs to enter the foreignmarkets.THREATS• Stagnation of the national economy;• Low investment in SME sector;• Unstable supply of energy resources forenterprises;• Large share of false products in market whichdecreases the efficiency of support measure;• Low competitiveness of SMEs;• Low payment ability among the mostpopulation;• Regional conflicts.Source: (1) UNECE, Geneva, 2005.(2) Antal Szabó, ERENET, 2007145