For the Support of Small Business in Georgia
Content.
In the conditions of deep economic crisis and during the period of extreme restriction in requisite resources for economic investments of tendency of selecting priority in investing activities enquire upmost importance. According to these circumstances, small and average businesses must be admired in such system of priorities. It follows not only from conjectural, political or ideological purposefulness, but also from objective activities of social-economic conditions; Simultaneously it is also connected to the position perspectives of this field to solve vital questions of the country. (creating concrete atmosphere, increasing employment level and efficiency, treating and spreading technical decisions etc) however, it is baseless to speak that small and average businesses in our country have any kids of advantages in distribution of investing resources, ` moreover, it often moves to the second place.
Financing has always been the urgent problem of small and overage businesses. According to the social research of small industrial management, half of respondents had to use their own savings in organizing these enterprises. Only more than a quarter managed to receive credits, but less than 20% – to attract depositors’ sources.
The employers admit that, the first and main problem is finances and buildings and then follows cooperation with local authorities. However, investment always remains as the main problem in the activities of a particular firm.
Pressent Day Situation of a Small Business.
In western countries outnumbered commercial banks, insurance companies, branch funds, regional commercial departments of tuition structures stimulating small business, regional guarantees, outnumbered charitable funds and associations, actively support them.
Due to not existed similar institutions, the development of small and average businesses is prevented. So it is quite natural, that development of small industrial net is still unable to form the commodity market. Nowadays supporting industrial activity has no main basis in small and overage businesses. The situation of providing these enterprises with material, energetic and financial resources has recently been deteriorated; according to results of selective researches in 2000-2005, in order study small industrial business activities in industry, building and retail trade showed that nearly 40% from small industries have their raw and building material supplies reduced. The existing level of orders and resource maintenance was estimated as “..below average”; however unlike large industries, homogeneous tendency of economical situation in small and average businesses is distincted, e.g. during 200-2005, the amount of employees and usage level of industrial capacity maintained sufficiently stable in small industries.
This is a preview of
For the Support of Small Business in Georgia
.
Read more...