Abstract
The paper discusses the role and importance of small business in the economic development of the country. Based on the analyses of the conditions of the current business sector, the problems that hinder small business perspective development, are detected. Even with the tax exemption and governmental supportive programmes small business exercises difficulties to be involved in different entrepreneurial branches, there are more and more cases of “hampering” small business, especially in the field of retail sale. In the work it is mentioned that the biggest challenge for the Georgian Economy is development of the small business. That’s why it is important to involve state and private sectors, to conduct a study of this sphere and find effective ways for solving the related problems. Keywords: Small business, special tax regime, investment environment, credit attractiveness, imperfect competition.
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