{"id":35894,"date":"2025-12-28T15:56:49","date_gmt":"2025-12-28T11:56:49","guid":{"rendered":"https:\/\/cue.edu.ge\/?post_type=articles&p=35894"},"modified":"2025-12-28T16:01:14","modified_gmt":"2025-12-28T12:01:14","slug":"trends-of-business-environment-perfection-in-georgia","status":"publish","type":"articles","link":"https:\/\/cue.edu.ge\/en\/articles\/trends-of-business-environment-perfection-in-georgia\/","title":{"rendered":"Trends of Business Environment Perfection in Georgia"},"content":{"rendered":"

Goderdzi Shanidze<\/strong><\/p>\n

Doctor of Business and Management, Associate Professor, Central\u00a0 University of Europe, And\u00a0 Akaki Tsereteli State University<\/p>\n

goderdzi.shanidze@unik.edu.ge<\/a><\/p>\n

\u00a0<\/strong><\/p>\n

Abstract<\/strong><\/p>\n

According to recent data, the business environment in Georgia has significantly improved and doing business has become much easier, as evidenced by official statistical information, in the World Bank Group’s annual report “Doing Business” from the website. According to 2024 data, Georgia ranks 7th out of 190 countries in terms of ease of doing business and has maintained the same position for 5 years, which is a good indicator for our country. In January-August 2025, Georgia’s foreign trade turnover in goods (excluding undeclared trade) amounted to 16,252.0 million USD, which is 8.8 percent more than in the corresponding period of the previous year. Of this, exports amounted to 4,448.0 million USD (increased by 6.7 percent), and imports amounted to 11,804.0 million USD (increased by 9.7 percent). The negative trade balance in January-August 2025 amounted to 7,356.0 million USD, which is 45.3 percent of foreign trade turnover.\u00a0 According to a study published by the European Business Association (EBA), the main challenge for businesses in Georgia is political instability, which the organization names as the main obstacle to doing business among the 200 European companies surveyed.\u00a0 76.8% of businesses surveyed name political instability as the main challenge, followed by the shortage of workers at 65.9%. The ineffective judicial system is in third place at 58%. The study also shows that the impact of the shortage of qualified labor on GDP loss is 26% annually. In 2024, 41.7 percent of the total number of employees was in large businesses, 21.5 percent in medium-sized businesses, and 36.9 percent in small businesses. During the reporting period, the total number of employees amounted to 764.2 thousand people, 3.0 percent more than the previous year. By type of activity, relatively high salaries were recorded in the following sectors:\u00a0 Information and communication; Financial and insurance activities; Construction; Professional, scientific and technical activities. The goal of our country should be to raise the level of awareness of citizens. A developed society is the basis of a strong private sector.<\/p>\n

Considering all this, I would like to draw attention to the following conclusions and recommendations:<\/p>\n

Creating favorable conditions for business requires the state to ensure economic and political stability. A strong economy and stable business development depend on increasing domestic production to meet internal demand. One of the key challenges in Georgia\u2019s labor market is the shortage of skilled professionals alongside an excess of unqualified labor, which calls for a systematic solution. To build a viable business environment, it is essential to develop innovative infrastructure, support the creation of tech parks, startup hubs, and business incubators, and ensure their accessibility across the regions.<\/p>\n

Keywords<\/strong>: Business Environment; Economic Potential; Business Sector; Economic Stability; Potential of Business Development<\/p>\n

JEL:<\/strong> \u00a0\u00a0E60; L26; J24<\/p>\n

DOI: <\/strong>10.52244\/c2025.37<\/p>\n

The article is in Georgian.<\/strong><\/p>\n

References<\/strong><\/p>\n

Tkeshelashvili Sh. \u201cPolitical instability is the main challenge for business – EU report on the business \u00a0\u00a0climate in Georgia\u201d 2025<\/p>\n

Jgerenaia A. \u201cModern trends in business development in Georgia\u201d 2025<\/p>\n

World Bank Group Annual Report 2024 doing business https:\/\/archive.doingbusiness.org\/en\/data\/doing-business-score<\/a><\/p>\n

BAG Index 2025 https:\/\/bag.ge\/ge\/bag-index<\/a><\/p>\n

PMCG and ISET Policy Institute \u201cUnlocking Georgia\u2019s Export Potential to the European Union\u201d 2025.<\/p>\n

National Statistics Service of Georgia https:\/\/www.geostat.ge\/ka<\/u><\/p>\n

Ministry of Economy and Sustainable Development of Georgia ttps:\/\/www.economy.ge\/<\/p>\n

Make in Georgia https:\/\/www.enterprisegeorgia.gov.ge\/ka<\/p>\n","protected":false},"featured_media":0,"template":"","meta":{"_acf_changed":false},"gonisdziebebi":[103],"class_list":["post-35894","articles","type-articles","status-publish","hentry","gonisdziebebi-2025-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/cue.edu.ge\/en\/wp-json\/wp\/v2\/articles\/35894","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cue.edu.ge\/en\/wp-json\/wp\/v2\/articles"}],"about":[{"href":"https:\/\/cue.edu.ge\/en\/wp-json\/wp\/v2\/types\/articles"}],"wp:attachment":[{"href":"https:\/\/cue.edu.ge\/en\/wp-json\/wp\/v2\/media?parent=35894"}],"wp:term":[{"taxonomy":"gonisdziebebi","embeddable":true,"href":"https:\/\/cue.edu.ge\/en\/wp-json\/wp\/v2\/gonisdziebebi?post=35894"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}