Small and medium-sized business problems
By Messenger Staff
Tuesday, October 20Currently small and medium-sized enterprises (SMEs) face serious problems. Unfortunately the Rose Revolution administration has not facilitated SME development, but on the contrary has abolished the law adopted back in July 1993 designed to assist small and medium-sized enterprises. Since this was done in May 2006 the SME share of GDP production has continually decreased.
According to UNDP research such enterprises employed over 50% of all wage earners in 2003 and produced more than 20% of the national output. In 2008 only 40% of the total number of employed worked for SMEs and they were responsible for just over 17% of the country’s output.
Economic analyst Emzar Jgerenaia thinks that small business has no fair competitive base. The analyst thinks it is necessary to adopt new legislation to help small and medium-sized businesses but above all the administration needs to have sufficient will to provide this assistance.