Directions for optimization of state support for Small Businesses in Georgia

Abstract

Determining the role and place of small business in the national economy has always been an area of interest for scientific research. Numerous scientific and practical studies have been dedicated to examining its significance within the nation's economy, most of which encompass the role of small businesses in the economy, their beneficial impacts, and the potential avenues for influence, including government support measures. Although the state has undertaken a number of important projects in the direction of stimulating small business and active work is still being carried out in this regard, it is preferable to enhance the efficiency of utilizing existing resources.

In our research, we studied the principal aspects of state support measures for small businesses in Georgia, examining them from both institutional and financial perspectives. We conducted an analysis and evaluation from the author's perspective. The research showed that the recent measures taken by the government are based on world best practices and should ensure the development of small entrepreneurship in the country. Despite the positive effects obtained by the implementation of the projects, we believe that this is insufficient and it is possible to achieve further outcomes with the existing support programs (with financial resources), even in the short term. To facilitate this, it is essential to examine the readiness of small businesses to efficiently utilize state-offered projects. It is crucial to assess whether there are instances of ineffective or misguided utilization of financial assistance, as well as to gauge their perspective on the future prospects of similar initiatives. Additionally, exploring the directions they perceive as promising for funding and support is crucial.

Throughout the research, we carefully selected a focus group comprising entrepreneurs from diverse business sectors, including both those based in the capital and those in regional areas. Our aim was to investigate the level of awareness among small businesses regarding state support measures, their extent of participation, preferred areas for future project implementation, and their preferences for assistance and support. Through an in-depth qualitative research approach, we gathered primary information and came to solid conclusions and offered practical recommendations based on our research findings. These findings highlight the necessary changes, encompassing both financial and institutional perspectives to optimize state support measures for small businesses.