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Most Georgian Business Concentrated in Tbilisi

Statistics Service published a report on the performance of business of the country in 2013.

As it turned out, Tbilisi remains a place of concentration of most Georgian business -the capital accounts for 72 % of total business established  in Georgia.

The expert Soso Archvadze says that  this fact shows that in Tbilisi business activity is quite high, and vice versa, low in the regions , respectively,  the state should support the development of entrepreneurship in the region to relieve  the capital.

“75% of business activity of the country accounts for 27-28% of the population living in the capital. This abnormal phenomenon and therefore, the state  should support the regions not only financially but alsofamiliarize with the entrepreneurial experience. The country needs more or less evenly developed economy and the emphasis must be put not  on selective but  systemic development, “- the expertnotes.

According to Director  of the regional network of hotels Travelers David Sirbiladze,  the main assistance that is needed to local businesses  is development of  infrastructure.

“Georgia has a relatively high potential for tourism development in the regions, so we decided to master those regions that are not very well developed in terms of infrastructure. It is good that the government is doing everything necessary in order to develop tourism across the country, and I hope that the support will enhance, “- the businessman notes.

According to  Director of the construction company Arci Tornike Abuladze, causes of the concentration of business in Tbilisi are quite clear.

“There is nothing surprising in a big business activity in Tbilisi. On the one hand it is the capital, on the other – the largest city in the country with  the most active turnover of money. Accordingly, it is more profitable  to work in the capital than in any other city or region. In any case, this issue is subject to regulation by the state, which must have  a corresponding policy of regional development and  determine in which region which  business is more profitable to develop, “- he says.

In general, about 500 000 people are  employed in the business sector in Georgia, which according to experts,  is a very low figure. Average wages in the business sector are low as well – the average earnings in  a large business are  GEL 969, in medium  – GEL  565, in  small – GEL 372 per month.

In 2013, the turnover of the business companies amounted to GEL 44, 3 billion,  from this amount the greater part falls on big business, and this fact also confirms the need for the development of small and medium-sized businesses.

In Georgia,  51% in the business structure  accounts for trade and repairs.