Big business is taking over in Georgia
By Messenger Staff
Wednesday, January 6Statistical data shows that the number of small and medium-sized businesses is dramatically decreasing in Georgia. In the third quarter of 2009 more than 85.1% of the total turnover of the country was accrued by large enterprises, 7.8% by medium-sized enterprises and 7.1% by small enterprises. Large enterprises produce more than 83% of overall production in the country, medium sized enterprises 7.9 and small only 7%.
Investment made by enterprises was GEL 193 million, out of which large enterprises made more than 94%, medium just over 4% and small less than 1%. Economic analysts think that the high share taken by big businesses in these figures shows that the competition level in the country is far from fair. Most economic spheres are monopolised by a few companies with strong backgrounds and very often 'unofficial' official support.
It is generally accepted that small and medium-sized businesses create the backbone of a country’s economy. These businesses create the middle class which drives development and political life in a country. Small and medium size businesses create competition, which is the fulcrum of the economy, thinks economic analyst Gia Khukhashvili.
Former Minister of State Property Management Avtandil Silagadze warns that the domination of big business results in the absorpton of small and medium sized businesses. Both analysts agree that regulations and anti monopoly activities should be introduced and promoted by the State.