Proceedings of the 24th International Academic Conference, Barcelona

ABOUT FINANCIAL ASSURANCE OF SMALL AND MEDIUM ENTERPRISES

KHATUNA BARBAKADZE

Abstract:

Actuality. In Georgia small enterprises are developing relatively quickly in some sectors, large capital is accumulated in this field and less support is needed from government. Relatively small enterprises of industrial sectors of economic sectors still require special state innovative support to increase profit and cost-effectiveness. Therefore, the industrial sectors of the economy mostly needs financial assistance from the state. We talk not about the financial support of all kind of small business, but about the small industrial enterprises who are creators of material wealth. Also, it should be taken in consideration priority and actuality of small enterprises development as for country’s economy as well as for society. Whereas, formation of middle class depends on small business development and by the size of middle class is determined how open is the national economy in conditions of globalization. The aim of the research. The aim of the research is to learn deficiencies associated with development of small and medium enterprises, particularly related to financial provision and ways of improvement. Research Methods. During the research, due to practical importance and complexity of the problem, it has been used systemic, historical and logical generalization methods. Also it has been used scientific abstraction, analysis and synthesis methods. Conclusion. The findings and results from the survey will contribute to the development of industrial small enterprises and will raise work efficiency in Georgia, which will be not only the economic consequences for the country's economy, but will solve social problems, particularly, will contribute to middle class formation.

Keywords: Small and medium enterprises. Innovative projects. Securities market. Banks and financial institutions.

DOI: 10.20472/IAC.2016.024.010

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