Abstract
The COVID-19 pandemic has had a significant impact on small and medium enterprises (SMEs). The purpose of this study is to assess the impact of the COVID-19 pandemic on SMEs in Georgia, identify the challenges of SMEs in pandemic conditions, and analyze government economic policy measures. For this purpose, 102 small and medium entrepreneurs from different regions of Georgia were interviewed. The survey was conducted by sending a questionnaire through digital channels. The results were processed using data analysis, quantitative and qualitative research methods, and presented graphically. As a result, key challenges and development directions that are typical for SMEs operations in Georgia during the pandemic were identified. For 60.8% of surveyed SME owners, lockdown is the main challenge. Sales volume of 45.1% of SMEs decreased. In addition, 39.3% of the surveyed SME owners increased the innovative capabilities of a company and 37.2% increased the sales volume of a company through digital channels. The main challenge of the pandemic, lockdown, gave impetus to a change in entrepreneurial behavior. In a pandemic, entrepreneurial activity has become more favorable through digital channels. During the pandemic, there is a need to continue the government’s program of tax incentives and subsidies for SMEs. In addition, the government should promote education in the fields of entrepreneurship, innovation, and technology.
Highlights
At the beginning of 2020, the world faced major challenges due to the COVID-19 pandemic
According to neurs have experienced in terms of innovating and the survey, in the face of a pandemic, in Georgia, using digital channels in Georgia, as well as an as- small and medium enterprises (SMEs) owners cite the imposition of restrictions sessment of government policy by entrepreneurs. (60.8%), access to financial resources (33.3%), and access to production materials
The COVID-19 pandemic has a significant impact on SMEs around the world, including Georgia
Summary
At the beginning of 2020, the world faced major challenges due to the COVID-19 pandemic. The COVID-19 pandemic created problems for the SME sector and threatened the development of the countries’ economies. The severity and duration of a corona crisis depend on the duration of the pandemic. In this sense, today “the economy has become hostage to medicine” The COVID-19 pandemic and the current economic crisis have created problems for entrepreneurship and for SMEs. In addition, the pandemic is an extraordinary way to discover innovative opportunities and creativity (Ebersberger & Kuckertz, 2021). The above-mentioned crisis was present in Georgia as well, where SMEs did not face challenges. The present study allows getting a deeper understanding of the problems of SMEs during the COVID-19 pandemic in Georgia
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