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Myths concerning the Medium and small Business Sectors in Georgia

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In the Post-Soviet space, which include ?Georgia, medium and small business sectors are just one of these sacred topics. All politicians, all economic experts or self-proclaimed ignorant experts mention these topics.

Our society refers to small and medium business sectors as being an respond to all queries as well as a universal panacea. We are all-around sanctifying these sectors.

What will be able to help to develop production? The development of medium and small businesses. What creates new employers? The roll-out of medium and small businesses. What attracts investments? You need to have already guessed what-

Politicians and experts perform ritual dances throughout the issue of medium and small businesses. The Authorities adopt laws, simplify taxes, introduce preferences etc.

In a word, even praying usually ?be adequate to the revival of medium and small business sectors and also the Georgian economy, in general.

However, the truth is different. Collective dances about the fire cannot resolve the challenge, while medium and small businesses are represented only in restaurants, street peddlers and sweetness salons.

The point could be that the thought your little friend and medium business sectors can rescue the nation from decades of poverty is often a typical Post-Soviet myth, that has nothing that resembles the facts. This stereotype has recently become an inseparable portion of public opinion, which is repeated endlessly without analysis.

The top problem is caused by an unacceptable and superficial understanding of the issue of medium and small businesses. This perception contributes to unachievable dreams inside the countries like Georgia, where individuals repeat which includes a child\’s impatience C \”Small and medium businesses create 60% of jobs ?in Germany\”.

And this really is, rather than only in Germany, but- so what can we mean by small and medium business sectors?

The point could be that the greater part of Georgian citizens possess the psychology on the street merchant. All things are smaller than average thin in Georgia. Tbilisi is packed with many hundreds of microscopic automobile maintenance centers, small workshops for assembling and producing something, tiny trading outlets.

In western world, one major high-technology plant works, and in Georgia there are plenty of small establishments, where ignorant former peasants work without knowledge, qualifications or ?technological expertise.

In Germany, 80% of medium and small business companies may not be represented by cosmetic salons and bakeries, like Georgia C primarily, these are generally enterprises with approximately 150 employees, and they represent strong and high-technology plants along with value balances out ten million EUR.

They are smaller or medium-sized compared to BMW or Siemens, nevertheless in Georgia, the ?investments of tens of millions of USD are required to build similar enterprises. Moreover, furthermore need to have a highly-qualified workforce and engineers, labor culture, sales, markets C and Georgia lacks ?every one of these components.

Another factor is less discussed ?– aside from the aforementioned plants, the fulfillment of orders for major company is on the list of key functions of ?small and medium businesses.

For example, today in Munich there is a giant BMW plant and a huge selection of businesses functions around it, which manufacture glass, rubber, spares, engines ?and countless other details, without which your car couldn\’t be assembled.

There also are many developed companies in Munich which build houses and apartments for workers at BMW and related companies; restaurants, where the workers of BMW and related companies have meals, salons, schools, kindergartens, supermarkets and the like.

In one word, virtually all small and medium business companies are directly affixed to giant corporations, which provides locomotive and without which nothing could be created.

And the glory that \”80% are represented by medium and small business companies\” should never let someone result in the erroneous conclusions that if BMW factory closes tomorrow, 80% of these medium and small companies will disappear like last year\’s snow. ?Only restaurants, cosmetic salons and many small workshops, and much fair sellers will always be, as the is whithin Georgia.

You just might discover no country has flourished on account of the medium and small business sectors.

In Georgia, we keep making useless conclusions within the last 18 years, additionally, the the years have get to be aware that, naturally, small and medium business sectors play a large role, only major business create an economy C major plants, major hotels, giant HPPs, huge farms with tens and countless hectares, major investments in agriculture.

Today, ?business should focus on maximal concentration and enlargement, in support of this process will stimulate the introduction of small and medium business sectors, not the inverse.

And once we continue to pray and dance around the fire, if you don\’t change anyway.

By Tengiz Ablotia

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Economy

Quantity of Hired Employees Exceeded Quantity of Self-Employed People Recently

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In line with Mikabadze, that the amount of employed workers exceeded the sheer numbers of self-employed people and share with the overall quantity of employment equaled to 50,8%, ?indicates the increase in the amount of jobs generated from the productive sectors of economy.

\”The lessing of the unemployment rate has resulted in stable economic indicators which were observed within the recent times in Georgia in line the decreased rate of economic increase this particular region. It is crucial that the unemployment rate has reached the lowest mark within the last Many years. Unemployment is decreased both among women and men,\” C Ekaterine Mikabadze said.

According towards Deputy Minister, the unemployment rate among men has decreased by 1,1% totaling to 13,9%, while among women the cell number was decreased by 1,5% and equaled to 11,2. Normally, the number of unemployed in 2018 was decreased by 30,7 thousand people plus the range of employees amounted to ?245,7 thousand person.

According to Ekaterine Mikabadze, the amount of employees in 2018 decreased by 12,4 thousand and 1694,2 thousand. \”A small decline in how many employed people as a result of a decrease in how many self-employed people, and also the quantity of employed workers significantly was increased by 35,9 thousand and amounted to 860,2 thousand people. How many self-employed people was decreased by 48,2 thousand and equaled to 833,4 thousand persons,\” C the Deputy Minister noted.

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Economy

Competition on Borjomi Park concept Announced

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Based on the official documentation, the concept includes: long-term vision with the development of Borjomi Central (historical) park, upkeep of historical-cultural function – development; Expansion of park’s perspectives; Growth and development of recreational function; Upkeep of the diversity of flora, if needed, add new species; Landscape design visions; Arrangement of paths, attractions and logistics.

Competition involves 2 stages. Applications is going to be completed on March 15. Inside first stage, the jury will select the best projects. Next the 3 winners shall be revealed by their involvement and public participation. Your second stage will end on April 5.

“Anybody or group playing competition may present the repair in?Borjomi municipality.

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Economy

237.5 So many Georgian Citizens are Unemployed

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In 2018 the annual unemployment rate decreased by 1.2 percentage points compared to 2017 and amounted to 12.7 percent.

It must be noted how the downtrend inside the unemployment rate is maintained in the last nine years, furthermore in 2018 unemployment rate reached the minimum level over the past 15?years.

In IV quarter 2018 economically active population constituted 63.6 percent from the working age population (population aged 15 and older). In comparison to the previous quarter, the efficient?activity rate and employment rate decreased by 0.7 percentage points. The employment rate in?urban settlements decreased by 0.2 percentage points compared to the previous quarter plus?rural settlements – 1.3 percentage points. As compared to the previous quarter the commercial activity?rate in rural settlements decreased by 1.6 percentage points, when it\’s in urban settlements remained?unchanged.

Traditionally, the unemployment minute rates are higher for males than women. In IV quarter 2018 the indicator was 2.6 percentage points higher for men when compared to the corresponding indicator for girls.

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