The Contribution of SME to Regional Economic Development: On example of Adjara Autonomous Republic

Abstract

Small and medium entrepreneurship (SME) is one of the most important sectors of the national economy. It determines the economic growth rate of the country/region and the structure of the gross national product. The article aims at evaluating the contribution of SME to the regional economic development on example Adjara A.R. (Republic of Georgia), investigating and analyzing importance of SME development at regional level and discussing the factors influence on its development. In the research section of the given article econometric analyses of SME key indicators is conducted by linear log-regression model based on statistical data of 2006-2019 years. The results of the research study show positive impacts of the number of employees and their productivity on gross value added. The study aims at underlining the government policy supporting an advantageous SME environment and conditions, which is a precondition for regional economic development.

Innovative Customs System and its Impact on the Sustainability of the Transit Potential

“…The innovativeness of the financial system, and the effectiveness of its spheres and links, on the one hand, give a special impetus to the activation of other components determining innovativeness, and on the other hand, reflects their consequential side. The main goal of the financial and economic system is to create favorable political, economic, social, ecological, and other conditions for the development of society, it serves to strengthen the economic strength, which should be implemented based on the development of the regional financial complex functioning in interaction with the country's economy (Glonti, 2007). Based on this, from the point of view of financial and economic development, the financial system can be imagined as a prerequisite and basis for innovative development, as well as the main means of achieving the country's economic development and public welfare.…”

“…In the monograph Southwestern Georgia of the era of Tbel Abuserisdze (Abuselidze, 2004), the author describes the economic situation of Georgia at that time, emphasizes the transit role of the country between the East and the West, and concludes that the land and sea routes of Georgia have always been the most important part of international trade routes. In the monograph "Region: Analysis, Evaluation, Perspectives" (Glonti, 2007) the author examines the financial and economic system and, based on foreign experience, justifies its most important role in the financial, economic, and social development process of the country and the region. In Chikovani's work, the main directions of the improvement of freight transportation in Georgia (Chikovani, 2020) convey the dynamics of transportation development and the basics of the interaction of different types of transport in the nodes of the transport network.…”

How does a region react to different types of shocks? The case of a Brazilian T&C industrial region

“…According to Glatz (2018), unemployment in the Brusque region and the expertise in T&C manufacturing activities influenced micro-entrepreneurship in the Reactions to different types of shocks clothing sectormainly due to the low entry costs in this industry (circular looms instead of flat looms and knitwear production instead of plain fabrics). From Eraydin (2016) and Glonti, Manvelidze, and Surmanidze (2021), we know that small-size firms contribute to regional economic resilience mainly due to their adaptability and flexibility capabilities before the effects of external shocks. While the pioneering textile industries dispersed throughout the region, the new clothing manufacturing MSMEs concentrated on the avenue called "Rua Azambuja."…”

Effect of Regional Economic Development on Small and Medium-Sized Enterprises: Modern Concept of the Dependency

“…Интересна в этом контексте работа В. Глонти, Р. Манвелидзе и И. Сурманидзе: на сравнительных материалах по краям Грузии показана зависимость динамики экономического роста (валовой добавленной стоимости) не просто от количества работников МСП, а от производительности труда [25]. Она, в свою очередь, определяется технологиями и качеством человеческого капитала, поэтому МСП нуждаются в доступе к ресурсам, а государству следует уделять больше внимания подготовке рабочей силы.…”