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Home » Program Activities:
Program ActivitiesThe importance of SME sector is well-recognized world over owing to its significant contribution in achieving various socio-economic objectives, such as employment generation, contribution to national output and exports, fostering new entrepreneurship and to provide depth to the industrial base of the economy. Georgia has a growing SME sector that plays an important role in sustaining economic growth, increasing trade, generating employment and creating new entrepreneurship in the country. In this regard, improving access to finance for SMEs is essential for SME development. The lack of capital and specifically credit has often been identified as the weakest link preventing the growth of SMEs in Georgia. Recognizing this, the Project fosters a continuous dialogue within the National Bank of Georgia, private sector commercial banks and non-bank financial institutions to address market imperfections and meet demand for the long-term financing for SMEs. With this two-pronged approach, the Project plans to increase the number of loans and the amount lent to the SMEs in Georgia. However, the creation of an enabling environment and support of business development service providers are further conditions for a successful promotion of SMEs. In line with this objective and to promote the growth and development of small and medium-sized enterprises in Georgia, in 2006 the SME Support Project set up a network of Business Support Organizations - Business Consulting Network Georgia - by utilizing existing business associations to offer the whole package of consulting and know-how necessary to provide the complete range of services needed to develop a functioning SME market in Georgia through its offices in Tbilisi, Kutaisi, Gori, Batumi, Zugdidi and Telavi. For policy reforms to be effective, they must respond to the needs and concerns of both the existing businesses and the Government. An increase in dialogue between these two sectors is expected to foster the power, efficiency, and flexibility necessary to meet the unique challenges that Georgia currently faces. Considering the public-private dialogue as an essential prerequisite for effective private sector policy reform processes, SME Support Project is actively involved in policy and legislative reform dialogues. In cooperation with partner projects and donors, the Project is taking initiatives to ensure the private sector is properly represented in policy and legislative reform dialogues, and can advocate for change to Government in an effective manner. In line with the tourism development strategy being worked out by the Department of Tourism and Resorts, the SME Support Project is currently implementing several tourism-oriented initiatives to provide diversified assistance for ensuring sustainable tourism development in Georgia. The SME Support Project, through its competitive and non-competitive grants program, supports a wide range of projects aimed at increasing the rate of development and growth of SMEs and creating new job opportunities for the Georgian citizens.
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