Norwegian Journal of development of the International Science
Published February 24, 2023 | Version v1
Journal article Open

RISKS EXISTING IN SMALL BUSINESS OF GEORGIA AND THEIR REDUCTION MECHANISMS

Authors/Creators

  • 1. Doctor of Economics, Guram Tavartkiladze Tbilisi Teaching University, Georgia
  • 2. Doctor of Economics, Professor of Georgian Technical University, Georgia

Description

Abstract

Supporting small business in Georgia on the way to European integration is one of the important vectors of economic policy.

In the conditions of globalization, with limited financial resources and a limited area of activity, small businesses have become much more sensitive to risks. In a number of cases, as a result of ineffective risk management in Georgia, the liquidity of assets and the amount of capital of small business enterprises are significantly reduced, risks are not properly managed, and small enterprises go bankrupt or receive significant losses.

The article discusses and analyzes the risks that hinder development of small business in Georgia. It is proposed to establish a modern system of risk insurance, of which will be possible to reduce losses caused by damage in small businesses.

Notes

References: 1. Business sector in Georgia, National Statistical Service of Georgia, statistical publication, Tbilisi, 2020; 2. Business sector in Georgia, National Statistical Service of Georgia, statistical publication, Tbilisi, 2020; 3. https://articlekz.com/article/15413; 4. https://zhazhda.biz/base/riski-malogo-biznesa; 5. First Section of the Annual Report on EU Small and Medium-sized Enterprises. EIM Business & Policy Research. Zoetermeer, 2009; 6. The latest news from the ABCCI Team "Business Act" for Europe. EU, January 2010. URL: http://www.abcci.com; 7. Kovzanadze I. "Lessons of the World Economic Crisis and Formation of a New Model of Development", Tbilisi, 2016; 8. https://www.culturepartnership.eu/article/projects-that-support-business-in-eap-countries; 9. https://www.dissercat.com/content/rol-i-mesto-malogo-i-srednego-biznesa-v-ekonomike-stran-evropeiskogo-soyuza.

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