Firms differ systematically by size, and these differences shape how aggregate shocks propagate through the corporate sector. Large and small firms vary in their production technologies, cost structures, financing options, and ability to absorb adverse shocks. These differences become particularly important during periods of macroeconomic stress, when constraints on liquidity, access to finance, and cost flexibility can translate into sharply divergent performance outcomes.

Digital transformation is changing how businesses around the world operate, compete, and create value for their customers. For small and medium-sized enterprises (SMEs), embracing digital tools has become crucial not just for boosting productivity and efficiency, but also for building resilience and ensuring long-term success.

The project, Development of Methodology for Child-Rights-Based Budget Analysis, funded by UNICEF, aims to create a systematic approach for analyzing public budgets in Georgia through the lens of child rights. Its objective is to ensure that public financial decisions prioritize children’s needs, promote equity, and align with international standards such as the UN Convention on the Rights of the Child.

This is a working note outlining the initial processes behind the SME Test Methodology. It is a notable deliverable part of the Developing an RIA SME Test Methodology for Georgia, while strengthening the capacity of the Government of Georgia to utilize SME RIA tools in practice Project, as funded by the UNDP and led by ISET Policy Institute.

This joint initiative by ISET Policy Institute and Policy and Management Consulting Group, supported by the United Nations Development Programme (UNDP) and the European Union (EU), aims to boost Georgian SMEs' exports to European markets.