Economy
Posted: 2 months ago

BDO Appraises Efficiency of Enterprise Georgia Program

BDO company has prepared a report on efficiency of financial accessibility and technical assistance components of the Enterprise Georgia program. The report was prepared by order of Enterprise Georgia agency of Ministry of Economy of Georgia.

A total of 100 beneficiaries were selected for the research process. At least 2 years have passed from their engagement in the program. The report has appraised the performance of these beneficiaries and the program efficiency.

Out of the mentioned 100 beneficiaries, 85 companies took part in the research voluntarily, including 30 startups and 55 operating companies. After engagement in the program, these enterprises were reequipped and expanded.

The report has exposed the following indicators:

GDP created by the beneficiaries – in 2014-2018 the mentioned companies have created more than 164 million GEL GDP, including 54% by expanded enterprises and 46% by startups. 79% of the GDP was created by Tbilisi-based enterprises, as 60% of the surveyed companies are located in Tbilisi.

Revenues received by beneficiaries – 85 beneficiaries engaged in the program have received revenues of 390 million GEL in 2014-2018.

Investments – the ratio of loans, other loans and capital payments made by the beneficiaries in 2014-2018 as part of the program, in relation to the gross investments is about 38%, that is more than 247 million GEL.

Number of employees -after engagement of beneficiaries as part of Enterprise Georgia program, net growth of number of employees made up 3 033, while salaries paid by beneficiaries to their employees constituted 25.6 million GEL.

taxes paid by beneficiaries – taxes paid by the beneficiaries as part of Enterprise Georgia program exceeds 42.5 million GEL, which is 0.13% in total budget payments in 2014-2017.

Exports in 2013-2018 – exports sales of the mentioned beneficiaries made up 311 million GEL.

Competitive Capacity – thanks to the program the beneficiates improved production scales, quality, diversified the production and increased competitive capacity in relation to imports.

BDO company was selected by tender. The research value made up 298 481 GEL. The second phase of the research project calls for providing recommendations for growing the program efficiency and the performance of companies.