The subject of the debate concerned future steps to be taken in to ensure the growth of SME's in Georgia - significant part of the economy. The expert panel included speakers representing government, SMEs, financial system, academia, NGOs, businesses and business associations. The importance of SMEs for economic development cannot be understated: most successful large firms in developing countries have graduated up from the SME category, whereas the breadth of the SME category itself reflects and helps to create a strong and deep entrepreneurial culture.
It is also well documented that SMEs tend to dominate a country’s new/fast-growing industries, therefore it is important to ensure the economic and legislative settings are conducive to SME development so that dominance of old and large firms does not render the economy slow and unresponsive to changing dynamic environment. At the same time, a well-developed SME sector is a source for price-reducing and quality-improving competition – which is particularly important for small-size markets like in Georgia, prone to monopolization or oligopolization. All in all this sector can be crucial in the long-term economic development of Georgia.
The panel discussion was organized in scopes of the broader Inclusive Growth Dialogue Platform initiative of ISET PI, supported by the Swiss Cooperation Office for the South Caucasus (SDC).