STRATEGIC PERSPECTIVES FOR GEORGIAN BUSINESS – AN ANALYSIS FOR MEDIUM-SIZED ENTERPRISES IN EU AND GEORGIA

Small and medium-sized enterprises (SMEs) belong to most important factors which drive the  economic development. The strength of the economic system of a given country is based on the potential of SMEs as they substantially contribute to employment and national income. SMEs may be perceived as a catalyst for economic growth. If companies cooperate with larger enterprises, they contribute to the efficient use of joint resources, information and technology and knowledge. SMEs have also an impact on the growth of gross domestic product, the formation of the middle class, and the increase of economic and political stability. Well-developed and strong sector of SMEs significantly contribute to export and import increasing the level of prosperity on a national scale. It is also important to take into account that the culture of enterprises from this sector, the way people identify with the place they work, their founding purpose may raise the organizational culture and foster achieving the overall organization goals. If the employees of SME have a strong sense of their duties and values they may guide the culture of the organization and have a positive impact on other enterprises with which they cooperate.

In the first part of the article the authors present the experience of SMEs in the EU, in the second part they discuss the main directions of the development of SMEs in Georgia based on the analysis of statistical data. The article ends with conclusions taking into account strategic priorities for SME development in Georgia.

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