Entrepreneurship in Georgia in the Wake of Pandemic: Old Challenges and New Opportunities

Abstract

Georgian economy, as an integrated part of global and regional economy, has been hit by the pandemic, triggering the ‘coronavirus crisis’ in terms of a sharp drop in GDP, mass unemployment, and rocked inflation. The pandemic intensifies the existing systematic issue - country’s dependence on external sources of economic growth - FDI, remittances, external trade, tourism, financial assistance of international organizations. Uncertainty and pessimistic expectations demotivate entrepreneurship. The goal of the article is to investigate entrepreneurship in Georgia, as a common and country-specific phenomenon in the wake of global pandemic, focusing attention on challenges and new opportunities. The research method is heavily qualitative due to the exploratory nature of the study. Case study, narrative content analysis and currently available statistical evidence are also applied. The pandemic requires the restructuring of the national economy, opens new opportunities for innovative entrepreneurship. The social distancing has dramatically altered consumers’ behavior and habits in their shopping, leisure and travel. Online education, entertainment, sales, healthcare services, remote working, etc. present new opportunities for entrepreneurs. The lockdowns reorient consumers on mass digitalization, they buy more local goods (services) in local markets. Pandemic enhances Georgian young generation’s incentives to choose entrepreneurship as a career choice.