Formation of a strong middle class in Georgia requires a development of small and medium entrepreneurship. As a result of implementation of a rational economic policy and realization of the knowledge and technology based approach in this field, increasing the number of employment, improvement of the national enterprise possibilities, enhancing the competitiveness of the production and growth of the overall level of prosperity of population could be achieved. Small and medium enterprises have been growing during the recent years, however, the growth rate is not sufficient. Share of the population belonging to the middle class is still low in Georgia. According to the studies conducted by the World Bank, in 2014 only 7% of the population of Georgia belonged to the middle class. According to the economic statistical study conducted in Georgia in 2018, share of the population belonging to the middle class in 2016 was 16%. The same study, with exclusion of the employment factor, shows the growth of the above-mentioned share to 24,6%. Ignoring the employment – very important determinant of the middle class – naturally puts the last figure far from reality. Current income inequality and high level of poverty negatively impact formation of the middle class in the country. In order to achieve the growth of the small and medium entrepreneurship, and respectively, growth of the middle class share, the following actions should be taken by the Government of Georgia: Increase of the scale of small and medium entrepreneurship programs, maximally inclusion of the regions; Support of the start-ups, formation of innovative economy; Promotion of the entrepreneurial education, formation of the corresponding environmental system for the export oriented industries; Maintaining political and economic stability.
Given the modern global conjuncture, technological innovation and creative thinking play a major role in the process of implementing entrepreneurial activities. The rapid development of digital technologies and the emergence of diverse digital platforms have given impetus to the transformation of entrepreneurial behavior and the conduct of entrepreneurial activities from the real - to the virtual environment. In the modern digital world, there is no alternative to technological entrepreneurship. 5G network, blockchain, 3D printing and other technological innovations make business processes faster, more reliable and flexible. The generation and implementation of continuous innovative ideas in technology has led to the emergence and development of information technology, digital technology, digital platforms, on which the modern form of entrepreneurship - digital entrepreneurship is based. One of the obstacles to the development of digital entrepreneurship in Georgia is the lack of proper access to digital technologies. At the same time, the population of Georgia has not yet developed the digital culture and skills that ensure the implementation of commercial activities in the virtual space. According to the National Statistics Office of Georgia in July 2019 in the country: 70.6% of households actively used the Internet, only 20.8% of them purchased goods and/or services through digital channels. In 2018, only 3.2% of enterprises received an order through the website. These data indicate the low level of Internet use by the public and, consequently, enterprises for commercial purposes. This untapped segment, at the same time, creates a solid potential for further development of digital entrepreneurship. Especially today, when physical mobility is restricted due to the worldwide pandemic COVID-19. Innovations and technologies are the main driving forces of modern entrepreneurship. Therefore, the emphasis of the Government of Georgia in this direction and the launch of appropriate economic policy instruments should positively support the transformation of the entrepreneurial environment and entrepreneurial behavior in the country. Given the current situation in Georgia, in order to identify and develop digital entrepreneurial opportunities, it would be appropriate to take the following measures: First, the state must ensure that more people have access to the Internet and digital technologies; Second, increase the scale of financial support programs for innovative and digital entrepreneurial initiatives, also, to help startups attract funding sources, to consult on opportunities to attract venture investments, to make it possible to implement a more technologically innovative idea; Third, primacy should be given to Georgian universities in the fields of entrepreneurship, innovation and technology, computer science; Fourth, the network of innovation centers should be expanded and similar educational spaces should be created to ensure the development of technical and entrepreneurial skills of the population (especially the rural population) in the field of innovation and technology.
In order to ensure irreversible development and stable social-economic conditions of a State, it should have a strong middle class, defining the country’s social and economic development targets. Considering the said, economic policy of development should be directed to the implementation of the measures supporting the formation of the healthy middle class in Georgia. Share of the population belonging to the middle class is still low in Georgia. According to the studies conducted by the World Bank, in 2014 only 7% of the population of Georgia belonged to the middle class. According to the economic- statistical study conducted in Georgia in 2018, share of the population belonging to the middle class in 2016 was 16%. The same study, with exclusion of the employment factor, shows the growth of the said share to 24,6%. Ignoring the employment – very important determinant of the middle class – naturally puts the last figure far from reality. Current income inequality and high level of poverty negatively impact formation of the middle class in the country. In order to form a middle class, Government of Georgia must overcome the problems faced by country’s entrepreneurship and society by means of the purposeful implementation of the rational policy of economic development. Achieving the said target requires: a stable political-economic environment; elaboration of the small, medium business development programs oriented on the inclusive growth, increase the scales of the currently existing program; development of the special professional training and employment programs for the population below the poverty line; promotion of economic activities based on the start of entrepreneurship, development of the start-ups, innovations and advanced technologies.
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