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
Business Positive – Successful radio program from Radio Positive
Starting point of radio program Business Positive is to meet interesting people, communicate with them and deliver information that is interesting for the audience.
A factory of electric vehicles to be built in Kutaisi
Prime Minister Mamuka Bakhtadze stated that a factory of electric vehicles will be built in Kutaisi at the presentation of the Aigroup business group.
Qvevri-shaped hotel complex to be built in Telavi
A Qvevri-shaped hotel complex is scheduled to be built in the village of Shalauri in Telavi, Kakheti (east part of Georgia).
Georgian designers presented at Fashion World Tokyo 2019
The products of 11 Georgian designers are showcased at Fashion World Tokyo 2019,
Silknet raises $200 million in Eurobond issue
27 March 2019 - JSC Silknet (“Silknet”), one of Georgia’s leading telecommunications operators, has successfully priced a debut $200 million 5-year 11% senior unsecured bonds issue (the “Notes”).
Pistachio trees will be planted in Georgia
Dozens of hectares of Pistachio are planned to be planted in Georgia this year.
Toyota Safety Sense and Hybrid Technology
Toyota Caucasus, has presented two new models the 5th generation RAV4 and the 12th generation Corolla at Rustavi International Motorpark, several days ago.
Bidzina Ivanishvili “became number one oppressor of businesses in Georgia” - ICC Georgia chairman Fady Asly
Mr. Ivanishvili promised the business community to protect them from harassment and pressure, unfortunately his words died with the sunset of that day
The best brands of Belarus will be exhibited on a large-scale exposition in Tbilisi
"The Belarusians like to come to Georgia to relax near the sea in Batumi as well as to stay in sunny Kakhetia."
Don’t treat business like a hooker! - Georgian businessman Vasil Soprpmadze addresses politicians
Businessman Vasil Sopromadze, founder of the company "Fresco", addresses politicians
RAV4 No Compromise and Corolla Set to Impress – Two New Cars Presented by Toyota
Toyota Caucasus, the company constantly aspiring to greatness, has presented two new models the 5th generation RAV4 and the 12th generation Corolla.
Mamuka Khazaradze quits TBC bank, does not sell the TBC Bank share
I made a decision to leave TBC bank where I spent 27 years of my life
10 Reasons to buy an apartment in the suburbs
There is a tendency for Tbilisi dwellers to move from central parts of the capital to the suburbs.
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
20.04.2019
21.04.2019
USD
1
USD
2.6935
2.6935
EUR
1
EUR
3.0291
3.0291
GBP
1
GBP
3.5021
3.5021
RUB
100
RUB
4.2126
4.2126
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
2.6935
EUR
1
EUR
3.0291
GBP
1
GBP
3.5021
RUB
100
RUB
4.2126
April 2019
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