Financial problems in small and medium businesses and ways to solve them

An important issue and problem that we encounter in small and medium business is its ability to live, lack of production skills, lack of knowledge for entrepreneurs, difficulty in accessing financial capital and lack of business incentives. Encouragement of small and medium-sized businesses is questioned when it comes to the long-term, what this or that small and medium-sized enterprise will do in the long run, because the existence of short-term enterprises in terms of economic well-being will not create the desired picture. In general, change the background from the business environment to the development of the country. However, practice has shown that in conditions where small and medium-sized businesses are less restricted, they demonstrate life skills over a long period of time, grow, and have a say in the development of the economy.
The development of small and medium-sized businesses in developing countries and regions like Georgia is a very important issue, it is a challenge for entrepreneurs and an opportunity for the country. The development of small and medium-sized businesses is usually followed by the development of important issues for the country, such as the formation of GDP, job creation, meeting the needs of the population or large businesses, corporations, domestic production, which has become one of the most important issues and challenges for countries. , In the context of the 2020 pandemic, where the question has arisen about the production of the country's food or primary, essential consumer product and the introduction of news in terms of business in the country.
For Georgia in particular, the development of small and medium-sized businesses is vital, as statistically small and medium-sized businesses make up to 20% of Georgia's additional value and up to 45% of jobs. Although Georgia's economic policy is tailored to the ease of doing business, it is still not enough. It needs to develop a more sophisticated and adjusted economy that will create an even more competitive, developing background in Georgia. This can be achieved by changing the format of small business, which will be a kind of force for the implementation of new structural changes in the economy. Business-friendly legislation and the Tax Code will prevent the country from developing a shadow economy and those entrepreneurs who are tax-exempt. Of course, small and medium-sized enterprises cannot combine the activities that big business does, but it has the power to make significant changes at the regional and sectoral levels.