DCFTA for supporting small and medium enterprises in Georgia

Abstract

In modern conditions, the process of forming small and medium enterprises in Georgia has a complex, resistant nature, due to many reasons: market imperfection, low level of investment and credit attractiveness, pressure from monopolist enterprises, lack of private savings in the population, low professionalism. As a result, small and medium enterprises in Georgia come in only a quarter of gross domestic product. Small and medium business plays a decisive role. Particularly important is the role of small business in the economy as a condition of competition and the development of large business. It increases the value of chain increases in mobile operators of large corporations and is an effective institution in the demand-supply chain for large companies, introduction of new technologies and innovations. In order to use DCFTA capabilities, small and medium enterprises in Georgia are required to enter the global markets not only to improve the small and medium-sized methods but also to improve their management. The main goal of the enterprise is to become a member of the Global Value Network. The enterprises operating in Georgia have great potential for development. However, it is important to prepare them for high standards and effective competition. In the solution of this task, enterprises need support for effective logistics, which involves the necessary infrastructure and institutional environment as well as essential business services. The legislative environment of Georgia must come into conformity with EU's competitive policy.