The Asian Development Bank Institute (ADBI) recently included a paper by PMC Research on the status of SME finance in Georgia as one of the chapters of its publication entitled “Leveraging SME Finance through Value Chains in CAREC Landlocked Countries”.
The main objective of our study, conducted as part of a project supported by the ADB, the ADBI and the CAREC Institute, was to examine the challenges facing small- and medium-sized enterprises (SMEs) in Georgia in terms of access to finance and their involvement in global value chains. The research was also aimed at analyzing the role of SMEs in Georgia’s economy, their funding, the status of their financial inclusion, and the level of financial literacy and skills among SME entrepreneurs. The research identified barriers to SME finance in Georgia and proposed policy recommendations and immediate actions with regard to existing government policies.
“SMEs in these countries face significant challenges in participating in international trade due to their limited scale, capital, technology, and managerial capacity, and their lack of direct access to seaports, generally inadequate transportation and logistics infrastructure, high trading costs, and underdeveloped financial systems. The development of global value chains has expanded the potential for SMEs to participate in international trade. By joining global value chains, SMEs can contribute to economic development by helping to diversify the production base, create employment opportunities, alleviate poverty, and increase regional food security. I believe this document, comprising valuable studies on the cases of these countries, will serve as an important guide for the respective policy makers,” said Dr. Giorgi Khishtovani, Director at PMC Research.