Problems in small and medium businesses

Small and medium size businesses generally constitute the backbone of any country's economy. Unfortunately Georgia is not performing adequately in this direction. The share of turnover for small and medium size businesses in the overall economy of the country is very modest. The tendency is that instead of growing small and medium business, they are shrinking. Analysts believe that this tendency must be stopped because it encourages the creation of a monopolistic economy which leads to high prices and killing competition in the market. This eventually creates a bad social situation in the country where the vulnerable portion of the population suffers the most. Analysts think that the country’s leadership should not only support small and medium size businesses verbally but take radical and effective steps towards improving their status.