Small and Medium-sized Enterprises (SMEs) Role in Georgian Regional Economy

Abstract

This research paper investigates the role of Small and Medium-sized Enterprises (SMEs) in local economic development within Georgian regions, focusing on their impact on job creation, innovation, and regional growth. Drawing on an extensive literature review, the paper synthesizes key themes such as the characteristics of SMEs, the business environment, access to finance, capacity building, innovation, and internationalization. The analysis emphasizes the importance of understanding the unique challenges and opportunities faced by SMEs in Georgian regions, with particular attention given to high-growth SMEs. By examining factors such as the regulatory framework, financial services, skills development, technology adoption, and export opportunities, the paper offers valuable insights into fostering a supportive ecosystem for SMEs. The research highlights the potential for targeted interventions to bolster local economic development and enhance regional competitiveness in Georgia.