€44 Million of EU Funding Drives SMEs Growth and Innovation in Georgia
The European Union invested €44 million through its EU4Business Initiative in 2023 to support the growth and development of small and medium-sized enterprises (SMEs) in Georgia. This significant investment has driven job creation, export growth, and innovation, contributing to Georgia’s economic resilience and growth.
Over 39,000 SMEs in Georgia were successfully supported through 50 projects last year alone. The impact of these projects has been substantial: there was a notable 12.8% increase in turnover among the supported SMEs, which resulted in the creation of almost 37,000 new jobs. Additionally, these businesses generated an extra €200 million in income, showcasing the effectiveness of the initiative in stimulating economic growth.
EU Support is Structured Around Three Main Pillars:
- Access to Finance: €23.2 million invested (52.9% of the total budget) to support concessionary loans, microfinancing, and financial literacy training for SMEs.
- Business Development Services: €10.9 million invested (24.8% of the budget) for direct advice, training, and the development of business clusters, fostering entrepreneurship and innovation.
- Business Enabling Environment: €9.7 million invested (22.2% of the budget) to promote regulatory reform, improve policymaking capacities, and encourage public-private dialogue, creating a more favorable business environment.
Key Achievements in 2023:
- 39,072 Georgian SMEs benefitted from various forms of support, including consultancy services, access to finance, and capacity-building programs
- 36,973 new jobs were created within EU-supported SMEs
- 458 EU-supported SMEs started exporting their products, contributing to a 6.8% increase in overall exports
- 17,275 SMEs received loans
- 371 SMEs received grants
- 40% of supported enterprises are owned or managed by women, advancing gender equity in business
- A 26.5% increase in staff among EU-supported SMEs
“The European Union remains committed to the economic growth and competitiveness of Georgia. Under its Economic and Investment Plan, the EU’s flagship project has already surpassed its target to support 80,000 SMEs. In 2021-2023, over 100,000 SMEs have benefited from EU support. We are delighted to see these results reflected in the EU4Business Report. In particular, that so many new jobs are being created through EU-supported enterprises and that over 40% are owned or managed by women, advancing gender equity in business and fostering economic and social inclusion. The EU’s investment in Georgia’s economic development is an investment in the country’s future”, – commented Nicholas Cendrowicz, Head of Cooperation of the European Union Delegation in Georgia.
Through the EU4Business initiative, the European Union has been effectively supporting and empowering small and medium-sized enterprises in Georgia for years. The results speak for themselves. From 2021 to 2023:
- Over 100,000 SMEs were supported by the initiative;
- 77,000 new jobs were created;
- and an extra €550 million in income was generated.
The EU’s investment in Georgia’s SMEs highlights its commitment to fostering economic growth, innovation, and inclusive development across all of Georgia.
For more information see the full report or visit the website.
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