Big business still dominates in Georgia

The Department of Statistics states that in the first quarter of 2010 the total turnover of enterprises in the country was GEL 4.836 billion, 1 billion higher than in the same period of last year. 84.5% of this turnover comes from large enterprises, 8.5 % from medium-sized ones and 7% from small ones.

The same proportions can be observed in regard of production. Large enterprises produce 83.2% of goods, medium enterprises 8.1% and small ones 7.7%. Almost 147 million GEL was invested by enterprises, of which large enterprises invested 94.5%, the medium-sized ones 2.9% and small ones 2.6%.

Clearly the economic share of large enterprises many times exceeds that of small and medium-sized ones taken together. Analyst Avtandil Silagadze thinks that this is a reflection of monopolies developing in the country and the lack of conditions for establishing and supporting a middle class, as this class develops when medium-sized and small enterprises function effectively. This is a serious problem which the State should respond to, thinks Silagadze.