FORMATION OF EFFECTIVE BUSINESS ENVIRONMENT IN GEORGIA WITH THE ASSISTANCE OF

Abstract

Besik Kvachantiradze E-mail: b.kvatchantiradze@gmail.com PhD Students,Batumi Shota Rustaveli state University Batumi, Georgia https://orcid.org/0000-0003-2833-1007 Abstract: The article discusses the stages of formation of the business environment of Georgia and the ways of its improvement with the cooperation of the European Union. Strengthening relations with the European Union has been the main goal of Georgia's foreign policy for years. Small and medium-sized enterprises, which are the basis of the successful development of the European Union, in recent decade have been operating in close collaboration with large businesses. Therefore, in our opinion, it is interesting to analyze the ratio of large, medium and small enterprises in the European Union. Since Georgia has taken the direction to European development, a number of reforms have been implemented in the country to encourage small and medium-sized businesses, which in turn has a possitive effect on the development of the country's overall economy. In addition to the state support for small businesses in the European Union, all member states have their own national system for stimulating the development of small businesses, the purpose of which is to create an economic climate that will contribute to the creation of economic conditions and normal functioning. This, in the first place, includes the creation of national institutions and the organization of financial assistance, training system for enterprise manager and entrepreneurs who want to start independent activities. Under taking European experience and mechanisms into consideration, a number of projects were implemented in Georgia, which contributed to the expansion and development of Georgian small and medium-sized businesses, in addition, retraining of the Georgian workforce and adjusting working conditions to European standards. Moreover, Georgia can greatly accelerate its economic development, strengthen its competitiveness and achieve its goals - through sustainable growth and job creation. Cooperation with the European Union offers Georgia great opportunities for learning, innovation and integration into the global economy. The article offers recommendations and suggestions that focus on creating closer relations with the European Union and attracting more foreign investment, which will ensure the economic prosperity of the country. Keywords: Business environment, small and medium business, cooperation with the European Union. JEL classification: O1, G2, E4