Problems and Impediments Associated with Entrepreneurial Development in Georgia

Abstract

This study examines the issues and challenges to the growth of entrepreneurship in Georgia. This investigation was informed by the fact that governments have strived to encourage the growth and development of entrepreneurship as an agent of economic transformation in recent times. This work therefore did a critical analysis of the challenges, with insight into their implications for the development of the Georgian economy. The importance of entrepreneurship is enormous, it expands the size of the economic
pie for everyone, creates jobs, produces wealth, ensues dynamism of industries and long-run economic growth, engenders enormous personal financial gains, provides self-employment, develops more industries, processes local material to finished goods, generates income, more goods and services and develops new markets. These potentials could be fully exploited for the benefit of Georgian economy only if the challenges are specifically identified, tackled and addressed through effective policy formulation and implementation. But, in Georgia, the practice and development of entrepreneurship has generated divergent opinions from different experts. 

The research focuses on the ease of doing business and its problems and this study attempts to provide answers to these questions regarding the entrepreneurial development, problems and impediments in the country. This study is considered a worthwhile undertaking with the principal aim of examining various issues and challenges that inhibit the growth of entrepreneurship in Georgia. The paper thus seeks to achieve the following specific objectives: to identify factors that most likely inhibits the growth of entrepreneurship in Georgia; to ascertain the relationship between legislative environment and the entering barriers to the market; To ascertain the relationship between management problems (e.g. lack of managerial/technical skills) and the growth of entrepreneurship in Georgia and to ascertain the relationship between finance (e.g. lack of access to finance) and the growth of entrepreneurship in Georgia.