Challenges and Opportunities for Promoting Sustainable Development in Small and Medium-Sized Enterprises (Case of Georgia)
Eter Kharaishvili1* and Nino Lobzhanidze2
1Professor, Microeconomics Department, Ivane Javakhishvili Tbilisi State University, Georgia
2Assistant Professor, Microeconomics Department, Ivane Javakhishvili Tbilisi State University, Georgia
*Corresponding Author: Eter Kharaishvili, Ivane Javakhishvili Tbilisi State University, 2 University Street, Tbilisi, Georgia.
Published: May 13, 2023
Introduction. The article evaluates the special role of Small and medium-sized enterprises (SMEs) in the development of the economy both in Europe and Georgia. On the other hand, the need to introduce and develop framework conditions for sustainable development to achieve long-term economic well-being is emphasized. Georgia's full-fledged integration into the European and Euro-Atlantic space requires rapid economic development of the country, using economic policy tools to create additional incentives for production development. SMEs can contribute the most to the rapid recovery and development of the economy, especially to poverty alleviation. Their role is also important in growth in the diversification of exports, the introduction of innovations, creating the modern Entrepreneurial culture, and more.
Aim and tasks. The main purpose of the article is to highlight the main challenges and opportunities for promoting sustainable development in SMEs in Georgia. To achieve this goal foreign experience in different countries in terms of stimulating sustainable development has been studied. The sustainable development of SMEs in Georgia and EU countries is compared.
Research results. The paper defines the conditions for sustainable development in SMEs. The article also establishes the impact of Covid 19 on the implementation of the sustainable development goals of enterprises. In the paper, the main challenges of sustainable development and opportunities for stimulation are investigated with the following methodology: bibliographic research is conducted; Analysis, comparison, induction, and other methods are used; Quantitative and qualitative research has been conducted. The focus of the research is the sector of agriculture and the firms operating in this field.
Conclusions. Conclusions are made on SMEs' main barriers to sustainable development and digital transformation (DX). Recommendations are offered on overcoming challenges and implementing opportunities for stimulation.
Keywords: Small and medium-sized enterprises; Sustainable development; Barriers to sustainable development; Promoting sustainable development; Economic policy