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EU says its €44 mln investment in Georgia’s SMEs boosts economic growth

The European Union has announced that its €44 million investment in Georgia’s small and medium-sized enterprises (SMEs) through the EU4Business initiative last year has significantly enhanced the country’s economic growth.

The EU representation in Georgia on Friday said, more than 39,000 businesses received support through 50 projects in 2023. This support resulted in a 12.8% increase in turnover and the creation of nearly 37,000 new jobs, demonstrating the initiative’s direct impact on the country’s entrepreneurial landscape.

The EU’s funding also helped businesses generate an additional €200 million in income, further emphasizing the initiative’s role in promoting economic growth. The investment focused on three key areas:

improving access to finance, providing business development services, and creating a more business-friendly environment. Of the total budget, €2 million went towards offering soft loans, microfinance, and financial literacy programs for SMEs, while €10.9 million was allocated to consulting, training, and fostering business clusters. Additionally, €9.7 million was used to improve the regulatory environment and promote dialogue between public and private sectors, facilitating a more supportive climate for businesses.

In 2023 alone, EU support enabled 458 Georgian SMEs to enter export markets, increasing the country’s overall export volume by 6.8%. The initiative also saw 17,275 SMEs securing loans and 371 enterprises receiving grants. Moreover, the focus on gender equality was a key aspect of the program, with 40.4% of EU-supported businesses being owned or managed by women. Employment in these businesses increased by 5%.

Nicholas Cendrowicz, head of the EU’s cooperation department in Georgia, highlighted the success of the initiative, noting that the EU had exceeded its target of supporting 80,000 SMEs. Between 2021 and 2023, over 100,000 businesses received assistance, creating 77,000 new jobs and bringing in €550 million in additional income. Cendrowicz emphasized that the EU’s investment is not only driving economic growth but also promoting innovation and inclusive development, ensuring a brighter economic future for Georgia.

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