Medium-sized and small businesses in Georgia

Economic analysts think that over recent years this country has not created favourable conditions for the development of medium-sized and small businesses. Moreover sometimes the state takes steps which damage them. For instance the anti-monopoly system has been abolished, private property rights are being violated, small street traders have been forced to use cash machines and privately owned ‘marshrutkas’ have been superceded by bigger buses, and these and similar issues create problems for small businessmen.

Since the Rose Revolution the number of people involved in small and medium-sized businesses has been decreasing. In all countries where the administration cares for its population it encourages the development of small and medium-sized businesses which are the drivers of the country’s economy and provides welfare for the population. Just to compare, in Taiwan 77% of the population are involved in medium-sized and small businesses, in Britain 59%, in the Netherlands 58%. In 2003 this figure was 51% in Georgia, now it is only 40%.