Small business faces problems

The authorities speculate frequently about the development of small business in the country. The share of small business in the Georgian economy today is about 15 percent. There have been several amendments introduced in the tax code for the purpose of encouraging small and medium-size business. The concept of so called micro business has been introduced and promoted. Micro businessmen are those physical entities whose turnover does not exceed 30 000 GEL annually, therefore such a person is exempt from taxes. However the limit of 30 000 GEL prevents the person from increasing his business and developing without paying taxes. The next category is so called small businesses, earning from 30 000 - 100 000 GEL. Analysts think that the amendments in the new tax code have liberalized micro business but have also limited them with the 30 000 GEL boundary. The system does not appropriately support small and medium businesses, according to the analysts. Representatives of small and medium size businesses themselves are considering the situation rather unfavorable as there are many unanswered questions and the legislation is altered too frequently, the businessmen think.