Georgian SME association founded
16 September, 2010
Georgian SME association founded

Association of Georgian Small and Medium Sized Enterprises (SME) is set up with purpose to lobby the interests of discriminated SME sector.

 


SME sector dubbed as muscles of US economy and all developed countries economies generally lacks communication with government and is discriminated in Georgia. Even definition of small and medium sized business is still dubious and needs more precise stipulation of the concept. Gap in definition makes confusion and affects SME sector interests in relationship with taxation service. Georgian

official approach is to be in close cooperation with big business – government when communicating with business refers to big business usually and the voice of smaller entrepreneurs remains unheard and discriminated.


SME has poor access to banking loans – banks prefer to lend to big business that creates setbacks to SME sector development. And while at average 70-80% of western economies is made by SME sector, it is difficult to calculate the share of SME sector in Georgia. According to business turnover big business makes 84% of Georgian business, while from social and employment points of view big business cuts just 12% and the remainder 88% is made by SME. Meantime bigger part of SME representatives cannot join business associations in Georgia either due to their status or for high membership payment and they are staffed by big business actually.


The picture shows that the larger stratum of society remains underdeveloped and vulnerable to risks due to lack of coordinated approach and concerted action provided by business associations.
On the other hand big business cannot operate properly without well developed SME sector, it is the basement of all economies worldwide, and corporate solidarity is a well-probated and approved relationship in developed countries.
Georgian big business also faced reality that it cannot develop properly without SME development lately and decided to establish Georgian SME Association (GSMEA) on purpose to protect SME sector interest via joint efforts: to improve communication between SME sector and government, create better access to banking loans and to promote this sector ultimately.


Four big business associations operating in Georgia as following: Business Association of Georgia (BAG), American Chamber of Commerce, EU-Georgia Business Council, and International Commerce Chamber decided to found Georgian SME Association (GSMEA) on September 10, 2010.
GSME aims to protect SME sector, lobby its interest, as well as facilitate to creation fair competitive climate in the country, as well as boost communication of SME sector with official structures, financial institutes, and society at large. It offers several services to its member including to help in business planning, legal service, crediting business, marketing, out-storing, accountancy, training etc. They expect to have about 100 members by the end of this year. Negotiations with potential members are underway. The membership payment will be diversified in three categories, Levan Kalandadze, Executive Director of GSMEA, explained to Georgian Journal. Medium sized entrepreneurs will pay GEL 1000 per year, petty business will pay GEL-200-250 yearly, and non-business members like non-governmental bodies and associated members will be exempted from membership fee.


“The way that big business helps SME sector to pave it way is the best world experience, both Europe and America passed this way. It is a common truth that big business cannot operate properly without developed SME sector. All big businesses have their own petty companies providing different services and face problems. It was Georgian mentality that big business was under focus and key priority. But our big business also faced the reality now that there are plenty of petty companies around them like distribution and other intermediate chains that are substantial for big business operation. Georgian big business understood that SME sector development is of paramount importance and united over this idea today,” Kalandadze said.
According to him, GSMEA will be association of entrepreneurs and not amalgamation of famous public faces and individuals. All business entities including NGOs that identify themselves with the SME representative can join the association in question.
“Middle social stratum in any society is based on SME sector and if we do not promote this sector society will not develop properly.  Big business has no communication problem with government in Georgia and easily lobbies its interests. But government does not go on communication with SME. And this sector’s interests are dissipated and thus vulnerable. They need to be gathered under one umbrella and be promoted. GSMEA is supposed to implement this goal,” Kalandadze said.

Print
Other Stories
Inovative and reliable online shop in Georgia - Momitane.ge
Status of Georgia as a business and tourism interesting country is growing from year to year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Bitcoin.com Head Speaker List featuring Circle, DEX.top and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
GAZELLE FINANCE GEORGIA AND TBC BANK HELP THE WESTERN REGIONAL CENTER OF MODERN MEDICAL TECHNOLOGIES EXPAND ACCESS TO QUALITY HEALTHCARE SERVICES IN KUTAISI, GEORGIA
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equiavlent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Mziuri Park in Tbilisi to be renovated soon
It was the dream of prominent Georgian writer Nodar Dumbadze that when the original Mziuri park was constructed and opened in 1892 that it should be a park for children,
PHOTO OF THE DAY
Exchange Rates
GEL Exchange Rate
Convertor
13.11.2018
14.11.2018
USD
1
USD
2.7166
2.7166
EUR
1
EUR
3.0602
3.0602
GBP
1
GBP
3.4900
3.4900
RUB
100
RUB
4.0131
4.0131
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.7166
EUR
1
EUR
3.0602
GBP
1
GBP
3.4900
RUB
100
RUB
4.0131
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30