Improving SME policy in Georgia
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Small and medium-sized enterprises play a significant role in Georgia’s economy. However, the distribution of SMEs across economic sectors highlights their concentration in low value-added activities, which helps explaining their relatively weak contribution to the country’s wealth. To fully benefit from the opportunities offered by the AA/DCFTA between Georgia and the EU, as well as to contribute driving Georgia’s economic growth, SMEs need to become more competitive and expand their access to international markets. The Government of Georgia initiated work on an SME Development Strategy for Georgia last year. In consideration of the ten principles of the EU’s Small Business Act, the SME Development Strategy aims to create a favourable business environment for SMEs and design targeted support measures for the SME sector in five strategic directions: •Institutional framework and operational environment for SMEs
•Access to finance of SMEs
•Competitive human capital and entrepreneurial culture
•Internationalisation of SMEs
•Innovation and R&D of SMEs
How the OECD contributesThe OECD assists the Government of Georgia through analysis and evidence-based recommendations, particularly to the Ministry of Economy and Sustainable Development. The project is conducted in close collaboration with the German Agency for International Cooperation (GIZ), and with the financial assistance of the European Union. The project’s Steering Group is chaired by the Deputy Prime Minister and Minister of Economy and Sustainable Development, Mr. Giorgi Kvirikashvili. The project’s Working Group is chaired by the Deputy Minister of Economy and Sustainable Development, Ms. Irma Kavtaradze. The two groups were created as governance and technical instruments to ensure policy coordination among stakeholders and involve representatives from the public sector, the local business community, and international experts to develop policy recommendations for SME development. Meetings and seminarsOn 23-27 November 2015, the Eurasia Competitiveness Roundtable brought together high-level government and private sector representatives from across the Eurasia region and OECD member countries to carry out a peer-review and provide feedback on the recommendations for Georgia's SME development strategy 2016-2020.
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 Georgia ranks 15th in the World Bank’s Ease of Doing Business report, and 4th in the “Starting a Business” dimension
In 2005, it took 25 days, 9 procedures, and 22.9% of income per capita to start a business
10 years later, it only takes 2 days and 2 procedures and costs 3.4% of per capita income SMEs comprise 94.1% of all enterprises in Georgia, employ 42.7% of the workforce and generate 20.6% of value added
EventsWorking Group meetings: Steering Committee meetings:
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