SME digitalization: 2023 snapshot
Monday, 06 November, 2023

In recent years digitalization has continued to reshape global contexts, impacting all aspects of life and business. The pandemic accelerated digital adoption, making it a critical factor for business resilience. 

In Georgia's private sector, digital adoption saw slight improvement as measured at the beginning of 2023, with the most significant changes observed in the usage of cloud services among large firms. However, SMEs' digital performance only showed marginal improvement, maintaining a substantial gap between SMEs and large enterprises.

When comparing the digital maturity of Georgian SMEs to their EU counterparts, there were slight advancements in basic digital intensity, including the utilization of sophisticated website functionalities and access to fast broadband connections. Integration of digital technologies showed limited progress, with notable improvement seen in the adoption of Enterprise Resource Planning (ERP) systems. In terms of e-commerce, only 3% of Georgian firms, including both large businesses and SMEs, are selling their products online, indicating room for growth in this area.

Most recent efforts to support the private sector and bridge the gap in its digitalization include enhancing digital skills through initiatives and awareness programs. The government is also working on digital infrastructure development and tailored support for SMEs. While Georgia has made progress, major collaborative efforts are still required to empower SMEs for a more digitally inclusive future.