The Role of SME Sector in Georgian Economy

Authors

  • Tatiana Papiashvili International Black Sea University
  • Ilyas Chiloglu International Black Sea University

Abstract

The purpose of the paper is to investigate the economic role of Small and Medium Enterprises (SMEs) in Georgian economy to define the perspective of their development. This issue has a special meaning for transitional countries, which are developing their growth policy. To see the picture Georgia’s short statistical review has been done as well as survey was carried out. The main result of the investigation is that, despite SMEs make a considerable number of business enterprises in Georgia, they have occupied insignificant segment of Georgian economy according to their contribution into the main macroeconomic indicators - turnover, output, value added, national income, etc. Even a share of number of employed in this sector is less than that in European countries. SME sector is economically low efficient because productivity of labor of employed person is two – three times lower than that in average in the country. The survey identifies a lack of clear government SME’s program as a key concern of SME sector development in Georgian.

Author Biographies

Tatiana Papiashvili, International Black Sea University

Lecturer at International Black Sea University, Tbilisi Georgia

Ilyas Chiloglu, International Black Sea University

Lecturer;Dean of the Business Management Faculty at International Black Sea University, Tbilisi Georgia

Published

30-05-2012

Issue

Section

Articles