State Support for Access to Finance in Georgia, Challenges and Opportunities

Small and medium-sized businesses are the most important lever for the country's economic development. It is the country's main source of employment and income for economic development and public welfare. Therefore, encouraging and developing entrepreneurship is a top priority for any country. The introduction of continuous innovation forms the unconditional basis for enterprises' long-term and sustainable success. Innovation needs technological perfection and renewal, which requires financial resources. Businesses often do not have the internal resources to introduce innovations and increase production. Providing enterprises with access to financial resources is a priority direction for the country. The paper aims to study the existing mechanisms of state financial support for entrepreneurship in Georgia, determine their effectiveness, identify potential opportunities, and develop recommendations for improving access to financial resources. During the research process, articles by both foreign and Georgian scientists, published in local and international scientific publications, government reports and studies of international institutions, authoritative organizations, and statistical data were used. The methods of analysis and synthesis, including quantitative and qualitative analysis, are used as research methods. The paper identifies the main problems that appear as barriers for Georgian entrepreneurs in receiving financial support and elaborates on specific recommendations to solve them. The paper emphasizes the fact that, at the current stage in Georgia, despite the reforms implemented by the state, finding a source of financial resources remains a problem. When developing financial support programs, more attention should be paid and the needs of entrepreneurs should be investigated in depth. This will help increase the efficiency of grant projects, state programs, and business development. Proper access to finance will improve the competitiveness of small and medium-sized businesses and will contribute to the country's economic development.