Learning business

Challenges in Business Education system of Georgia

by Business InsightBusiness SchoolBusiness SupportLatest PostsNews

According to the general definition Business Education involves teaching students the fundamentals, theories and processes of business, as an educational field, it occurs at several levels, including secondary, higher and university education.

Approximately 38% of students enroll in one or more business courses during their high school tenure around the world  but unfortunately, not every country is familiar with this tendency, for instance, Business Education is taught at secondary level in Austria, Canada, Hong Kong, India, Pakistan, etc. in Georgia and in most of other countries Business as an academic study can be learnt mostly at the university level.

In Georgia including business education in school studies started in 2015 when conversation was going on inserting business skills as a subject for elementary school children, project was funded by the USAID in collaboration with The Ministry of Science and Education of Georgia and Junior Achieving Georgia, at the first stage this reform was planned to be introduced in twenty-seven schools, teachers of which were specially trained for this novelty.

This program offered unique educational experience for students as a result of which they would better understand and perceive business world, which they are expected to have right after finishing school. Business Skills classes at the primary (I-IV) classes were conducted by tutors and volunteers invited from the private sector, which themselves leaded the program for V-VI classes.

Business lessons included fun games and activities, where volunteers shared the basic concepts of economics and finances, helping children to solve their problems in creative ways and consolidating useful life skills too but time after time speech about the business education hushed up and today most of the schools don’t have this field included in school agenda but even these activities only couldn’t help changing whole picture of Georgian school education, as long as country’s rural schools still face big problems connected with money, transportation, etc. and situation is getting even worse in mountainous regions where schools usually have problem with  hiring competent executives of some subjects, thus, before intense implementation of Business field whilst school learning, the government will have to manage preparatory actions connected to school life in general too.

In 2016, Georgia has opened its first Tech Park, providing the capital, Tbilisi, with a dedicated site for the development of innovations and technologies, which already became space for unique business possibilities and the most important, it strongly encourages young people, even schoolchildren of last classes to enter in useful business trainings for free, share the knowledge of already successful entrepreneurs and even more, initiate own startups which have great opportunity of reaching local or foreign business sector representatives and fortunately, more and more young people are involved in these processes.

Business education is quite popular among Georgian school-leavers, but has it real prospects or not is still in need of proving, let’s look at the statistics, according to National Assessment and Examination Center in 2016 the highest number of applicants were driven into Ilia State University Business Administration faculty but if we draw parallels, according to the research conducted by the Friedrich Ebert Foundation, in the same year about 46 % of young people under the age of 14-29 were unemployed  and it’s also noteworthy that only 31% of young people were employed by their first profession, in which Business is firmly included. Reasons of unfortunate statistics can be many, but mostly that students usually take only theoretical education of Business, whilst, the best way of learning this field is to practically arrange theoretical part, as it is done in many foreign universities.

Business Education usually combines elements of accountancy, finance, marketing, organizational studies, human resource management and economics, thus, informing people with this knowledge from school age will help them to acquire useful skills for future career and most important, prepare them psychologically for the time when they’ll have to face far more important obstacles of life which will begin to surface right after achieving school degree, thus, for Georgia, which has great resources for  businesses, having lack of people knowing how to manage and gather together all these resources strongly affects economic development of the country.

Maybe that’s the reason why most of business organizations in the area are run by foreign entrepreneurs as long as there is a lack of local cultural background of teaching how to do business from childhood and general educational system isn’t ready to prepare competitive young entrepreneurs acquired with strong practical business skills and only few exceptions are willing to make their own contribution in the field.

 

Author: Tamar Devdariani © BUSINESS GEORGIA

Georgian Agriculture

Changing Agri-Business of Georgia

by business climateBusiness EnvironmentBusiness in TerritoriesBusiness MarketForeigners in BusinessInternational EnvironmentLatest PostsNewsTrade Opportunities

Agricultural traditions are the main part of Georgian cultural heritage and mentality, as long as favorable climate with fertile soil make it one of the most productive economic sectors for the country and support production of a variety of high-value agricultural products including wine, nuts, citrus fruits, peaches, apricots, etc.

After signing a Deep and Comprehensive Free Trade Area (DCFTA) with the European Union in 2014, Georgia can produce agricultural products meeting the required safety and security standards and that makes it even more favorable for new investors of European markets, as longs as they can benefit from rising consumption on the local market, which is complemented by the Duty-free access to 900 million foreign markets under this agreement.

Georgia has emphasis on labor-intensive crops such as tea and grapes. In 2017, after the three-year study conducted by experts from seven countries, Georgia officially acknowledged as the cradle of wine and was invited to be a host of solo exhibition illustrating its oldest traditional viticulture and wine-making in Bordeaux, Paris.

Nowadays, wine export growth gives positive prospects to the sector, for instance after the data published in National Wine Agency of Georgia in January-February (2018) 10,8 mil. bottles of wine have been exported to 38 countries worldwide, that is 23% higher than the similar data of the last year.

There is fierce competition connected to the tea in Georgia, because  strong local manufacturers are not allowing the international players to take over tea entirely but as Euromonitor International reveals, consumers of tea in Georgia stay quite conservative and most brands produce only black or green tea.

According to the Strategy for Agricultural Development in Georgia for 2015-2020, it is estimated that 25% of Georgia’s total land area is classified as permanent pastureland and about 70-80% of pasturing is self-regulated among local and nomadic pasture users, which gives good grounds for stockbreeding, but without having strong supporting policies small farmers which make 95% of all farmers, typically cultivating around one hectare of land with low output aren’t able to compete with imported products, which except dairy food and beverages mostly relies on meat products, as well as grains and egg. Generally, Georgia imports 80% of its packaged food products which has a significant negative impact on its trade balance.

The Georgian government identifies agriculture as a priority for development and has also set up the Agriculture Investment Fund to support the sector by providing credits for farmers. The projects of building new agricultural products processing plants can get grant from the government with a total value of up to 250 000 USD. In addition to this, investor can symbolically buy state owned immovable non-agricultural property only for 1 GEL.

Government of Georgia intends to create a favorable business environment because full use of Georgian agriculture potential is vitally important for country’s economy, for this purpose, in 2015, Parliament passed a bill allowing foreigners to own the land but with certain limitations as long as foreigners now may own agricultural land if they inherit it, co-own the land through marriage to a Georgian citizen or by being a member of a Georgian citizen household or hold a residence permit.

Georgia has 22 micro-climates varying from cool and dry to warm and humid. These diversified micro-climates allow for a longer than normal harvesting season and a range of growing conditions. Soils are of volcanic origin in the river valleys, which tend to be quite fertile and reasonably easy to cultivate.

Country has easy and cheap access to water as well and the prices of other utilities such as energy and gas is low too, but on the other hand, according to the 2017 budget, by GEL 83,000,210 reduced agricultural financing resulted in decreased funding for financing programs like the agricultural development program, food safety, epizootic goodwill and plant protection, viticulture, implementation of scientific research activities and so on.

During the last years, as a result of good international cooperation, the positive tendencies are being observed in regard to expanding the export market, increase of production and attracting the investment in the agricultural sector. But local production is still under strong necessity of boosting as long as even though having rich resources, trade balance between import and export is still unenviable in Georgia.

Author: Tamar Devdariani © BUSINESS GEORGIA

Photo: Tamuna Ubiria © BUSINESS GEORGIA

Internship Business Georgia
by Business SchoolLatest PostsNews

START YOUR CAREER IN BUSINESS GEORGIA!

 

Media company BUSINESS GEORGIA is offering internship programs for students and graduates which are open all year round and you are free to apply anytime you prefer.

As you know, BUSINESS GEORGIA through its media channels is spreading business information about Georgia and each Intern will have opportunity to discover the business sector of Georgia and create valuable working experience.

Below is the information about the Internship Programs:

  • Location: Tbilisi, Georgia
  • Start time: All year round you can apply and start
  • Duration: 6 months
  • Working language: Georgian/English
  • Internship directions:

PR

Marketing

Business Journalism

Administration

Events management

Digital media

Visual media

Print Media

Design (Graphic or Motion)

Social Media

  • Working conditions: Internship can be part-time or full-time, from office or from distance. The internship is not paid
  • Our expectations: Fluency in English language, ability of time management, strong feeling of responsibility towards obligations, motivation to learn and develop your skills
  • Your benefits: Internship contract which you can use for University credits, Internship completion document, work experience, successful Interns will be offered job opportunity in BUSINESS GEORGIA
  • How to apply: Send your CV in English, indicating in subject line the preferable internship directions, to the  t.ubiria@businessgeorgia.ge

 

We look forward to working with you!

Internship Journalism
by Business SchoolLatest PostsNews

BECOME A TOP BUSINESS JOURNALIST WITH US!

 

Media company BUSINESS GEORGIA is offering internship opportunities for students and graduates in Journalism which is open all year round and you are free to apply anytime you prefer.

As you know, BUSINESS GEORGIA through its media channels is spreading business information about Georgia and each Intern will have opportunity to discover deeply the business sector of Georgia, expand analytical skills and create valuable articles which will be useful for local or international readers and Intern’s professional development.

Below is the information about the Business Journalism Internship Program:

  • Location: Tbilisi, Georgia
  • Start time: All year round you can apply and start
  • Duration: 6 months
  • Working language: English
  • Working conditions: Internship is part-time and you will work from distance. The internship is not paid
  • Our expectations: 1-2 articles per week that Intern should prepare in English language based on the topics that we will give related to Georgian business sector
  • Your benefits: Internship contract which you can use for University credits, Internship completion document, work experience, your best articles published on our website and magazine, successful Interns will be offered job opportunity in our company
  • How to apply: Send your CV and 2-3 articles in English to t.ubiria@businessgeorgia.ge

 

We look forward to working with you!

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Georgian mineral and freshwater exports are growing annually

by Business EnvironmentBusiness MarketInvestment OpportunitiesLatest PostsNewsTrade Opportunities

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Georgian mineral waters are very famous not only in Georgia but in foreign countries also. Especially this product is realized by summer because hot weathers make bad effect to people, so consumers need minerals to be strong enough. And it’s no surprise that entrepreneurs are preparing for this season and for exporting in all over the world. The bestselling mineral waters of Georgia are: Borjomi, Nabeghlavi and Likani.

Georgia had mineral water export growth in every year from 2010 to 2014 years. Witch had acted good for Georgia’s economy. The export of mineral water was increasing by 12% -25% annually until the opening of the Russian market, after the opening of the Russian market in 2013, the export of waters increased by 45%, and in 2014 the figure was $ 137 123 million. In 2014, the Mineral waters took fourth place in the export products list.

In 2015, due to the crisis in the Russian market, export indicators continue to decline.

  • 2010 – Export to $ 36 Million, increase by 33%
  • 2011 – Exports Increase $ 47 million, increase by 23%
  • 2012 – Exports amounted to $ 59 million, increase by 20%
  • 2013 – Exports amounted to 106 million, increase by 44%
  • 2014 – export $ 137 million, increase by 22%

From 2015 mineral and freshwater exports from Georgia are growing annually. According to the National Statistics Office of Georgia, in January-April 2017, 45.8 million liters of mineral and fresh water have already been exported, which is 18.4% more than the same period last year.

Below are the figures of mineral water export (2010-2017)

 

Photo: Lake Shaori. Racha, Georgia. 

             © Tamuna Ubiria 

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Nassim Taleb will deliver 2-day lecture on Antifragility in Tbilisi

by Business EventsBusiness InsightBusiness NetworkBusiness Schoolevent mediaLatest PostsUncategorized

On March 30 and April 1, Nassim Taleb will run a 2-day Antifragility workshop for 100 top managers from the largest companies in Georgia and the CIS countries. The globally recognized author will talk about how to measure antifragility and cultivate it in yourself and your company. The event will be opened by the Minister of Finance of Georgia, Mr. Mamuka Bakhtadze.

Nassim Nicholas Taleb is the author of best-selling books Antifragile and The Black Swan. In addition, the participants will hear the excerpts from a new, yet to be published book Skin in the Game, the Logic of Risk Taking. For 10 years now, he’s been studying unexpected and predicted events in the global economy. Taleb started as a risk analyst at New York stock exchanges and ran his own hedge fund.

Antifragility is the ability to benefit from failures, become stronger when facing difficulties, and move forward even under high uncertainty. The term was coined by Nassim Nicholas Taleb in his best-selling book The Black Swan.

We’ve selected the most inspiring quotes from Antifragile:

ON ADVICE – “Never ask anyone for their opinion, forecast, or recommendation. Just ask them what they have—or don’t have—in their portfolio.”

ON WEALTH – “The record shows that, for society, the richer we become, the harder it gets to live within our means. Abundance is harder for us to handle than scarcity.”

ON LOSERS – “Further, my characterization of a loser is someone who, after making a mistake, doesn’t introspect, doesn’t exploit it, feels embarrassed and defensive rather than enriched with a new piece of information, and tries to explain why he made the mistake rather than moving on. These types often consider themselves the “victims” of some large plot, a bad boss, or bad weather.”

ON TRIAL AND ERROR – “Further, the random element in trial and error is not quite random, if it is carried out rationally, using error as a source of information. If every trial provides you with information about what does not work, you start zooming in on a solution—so every attempt becomes more valuable, more like an expense than an error. And of course you make discoveries along the way.”

Due to the interactive format of the workshop and limited number of participants, everyone will be able to comment or ask the speaker any questions about his talk.

The event will take place at the Radisson Blu Iveria Hotel, one of Georgia’s best hotels located in the heart of the sunny Tbilisi.

BUSINESS GEORGIA is supporting this event as a media partner.

The organizers are offering to our readers a special 7% off via code “businessgeorgia”

Read more and register here

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Georgia – Land of Golden Fleece

by Business EnvironmentBusiness in TerritoriesBusiness MarketLatest PostsNewsTrade Opportunities

Georgia is considered to be one of the oldest homelands of metal processing in the world. From the Copper-Bronze Age, when man acquired metal, it became the origin of the jewelry, especially the noble metals (gold and silver).

Examples of works by early Georgian goldsmiths were discovered during archaeological excavations, dating back to the 8th-6th centuries BCE, found on the territory of the ancient kingdom of Colkheti, known as Colchis. Burial mounds of ancient nobles on the sites of Vani and Sairkhe explain why Colkheti was referred to as Golden Fleece land, along with Mikena, Sardi, and Babylon in Greco-Roman sources.

Nowadays, Georgia is still rich in gold and this fact is reflected in high volume of export. During the last 7 years, Georgia has exported gold of USD 639, 923 500 64 and in 2017 price of exported gold was USD 64,656 600. This product is the 10th in the top export list of Georgia.

There are the couple of ores in the country, where gold can be mined: Madneuili, small town Kazreti and Ieli village Svaneti.  Rich Metals Group (RMG) is the one of the largest enterprises in Georgia and Caucasus region, engaged in mining activities in Bolnisi region, Georgia. JSC RMG Copper and LTD RMG Gold produce the copper concentrate and gold Dore alloys (half-fabricates) by mining and processing copper and gold containing ores. Currently, about 3000 employees work at the company, 90% of whom are local residents. 

Chart illustrates rates of exported gold (unwrought, semi-manufactured, in powder form) from Georgia, between 2010 and 2017. Units are presented in thousand US dollars.

The rate of export fluctuated, where the highest rates are shown in 2010 (about 117,647). In this period, gold export rates fell dramatically, up to 39,334. In 2015, rates improved slightly and reached almost 81,083. Unfortunately, in 2017 gold export decreased up to 700,771.

Overall gold import rate reached the peak in 2012 at a level 2,285, which fell dramatically in 2013(2.6) and remained stable until 2017 (24.1).

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Construction sector of Georgia is growing rapidly

by business climateBusiness EnvironmentEconomic EnvironmentInvestment OpportunitiesLatest PostsNews

Construction & Building is the global business of creating physical infrastructure such as residential buildings, highways, bridges, factories, airports and power plants. Normally the job is managed by the construction manager, supervised by the project manager, design engineer or project architect.

While these people work in offices, every construction project requires a large number of laborers, carpenters, and other skilled tradesmen to complete the physical task of construction.

In Georgia, in the first quarter of 2017 there were 58416 employees in construction business, followed by second and third quarter 67351 and 71394. From the 2011 to 2017 years there isn’t much difference in employment in construction business. Tbilisi is the leader city in a construction employment than other cities. In 2016, 59.6% of employed people were in Tbilisi. There were 814 employed persons, representing 1.1% of all employed people in Georgia.

But there is too much difference in compensation figures of employees. From 2008 index of reimbursement has permanently went up. For example, in 2008, 2009 and 2010 the average reimbursement was GEL 634, but in the first and second quarter of 2017 it was GEL 1,951 – 2,011.

According to the National Statistics office of Georgia Business construction turnover past few years isn’t stabilized. It has raised rapidly. In 2013, 2014 and 2015 turnover was 3,244, 3,807, and 5,287 million GEL.

 

Overall, investment rates have fluctuated during the time depicted on the graph. It raised in 2014 and in contrast, lowest rates of investment were in 2009 and 2011.

Its important to mention that in 2017, 10 495 construction permits have been issued throughout Georgia.

As for the completed constructions in 2017, 2,2 million square meters of space has been completed. The number of completed constructions increased by 1.3% in 2017.

In the first three quarters of 2017, construction sector investment was USD 241 million. And in 2017 the figure was 86% more than in 2016.

Eport Import

Georgia’s Export and Import in 2017

by Business AbroadBusiness in TerritoriesBusiness MarketInvestment OpportunitiesLatest PostsNewsTrade Opportunities

According to the data released by the state statistics office of Georgia, in 2017 Import reached USD 7.9 billion, while exports of Georgia was USD 2.7 billion. It was largest figures for the last three years both for export and import. The lowest rate of export from Georgia was USD 2.1 billion in 2016.

The trade turnover with the EU-member states stood at USD 2.84 billion in 2017 and USD 2.78 billion in 2016, a 2% increase compared to 2016. For the last three year’s maximum rate of import was in 2016, USD 2.21 billion and export in 2017, USD 0.64 billion.

Horizontal bar chart shows statistics of export and import of Georgia, between 2012 and 2017. Values are shown in billions of US dollar.

Additionally, in 2017 Trade turnover with the Commonwealth of Independent States (CIS) was USD 3.54 billion, while in 2015 and 2016 was USD 2.8 billion and USD 2.71 billion. Georgian exports to CIS countries were up by 60% y/y to USD 1.18 billion and imports increased by 19.2% to USD 2.36 billion.

 

Georgia’s largest trade partners in 2017:

  1. Turkey – USD 1.58 billion
  2. Russia – USD 1.18 billion
  3. China – USD 1.18 billion
  4. Azerbaijan – USD 1.18 billion
  5. Ukraine – USD 569 million
  6. Armenia – USD 489 million
  7. Germany – USD 478 million
  8. The United States – USD 389 million
  9. Bulgaria – USD 334 million
  10. Italy – USD 286 million

 

Georgia’s 2017 top trading partners by exports:

  1. Russia USD 394 million
  2. Azerbaijan USD 272 million
  3. Turkey USD 216 million
  4. Armenia USD 208 million
  5. China USD 207 million
  6. Ukraine USD 124 million
  7. The United States USD 121 million
  8. Iran USD 76 million
  9. Switzerland USD 71 million
  10. Uzbek USD 64 million

 

Georgia’s 2017 top trading partners by imports:

  1. Turkey – USD 2.37 billion
  2. Russia – USD 788 million
  3. China – USD 732 million
  4. Azerbaijan – USD 609 million
  5. Ukraine – USD 455 million
  6. Germany – USD 433 million
  7. Armenia – USD 281 million
  8. The United States – USD 267 million
  9. Italy – USD 217 million
  10. Romania – USD 191 million

 

Georgia’s 2017 top exported products:

  1. Copper ores and concentrates USD 419 million
  2. Ferroalloys – USD 306 million
  3. Re-export of motor cars – USD 234 million
  4. Wine – USD 170 million;
  5. Medicines – USD 140 million
  6. Non-denatured ethyl alcohol and spirits – USD 126 million
  7. Mineral waters – USD 95 million;
  8. Hazelnuts – USD 83 million
  9. Chemical fertilizers – USD 76 million
  10. Raw or semi-processed gold – USD 70 million

 

Georgia’s 2017 top imported products:

  1. Oil and oil products – USD 696 million
  2. Cars – USD 474 million
  3. Petroleum gases – USD 350 million
  4. Medicines – USD 346 million
  5. Copper ores and concentrates – USD 338 million
  6. Mobile and other wireless phones – USD 204 million
  7. Cigarettes – USD 102 million
  8. Wheat – USD 98 million
  9. Automatic data processing machines – USD 96 million
  10. Trucks – USD 72 million
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Georgian Hazelnuts future and its global market share

by Business EnvironmentBusiness in TerritoriesBusiness MarketInvestment OpportunitiesLatest PostsNewsTrade Opportunities

Protein rich hazelnuts are sweet tree nuts that grow in temperate zones and its mainly cultivated in Turkey, which produces about 60% of the world’s total production. Hazelnuts are used in products like, hazelnut oil, chocolate bars, spreads and coffee.

Georgia is considered as one of the largest suppliers of hazelnuts in the European market. In 2009-2012 Georgia was fifth among the exporting countries with the exception of the hazelnut export to the EU. Although Georgia is considered one of the biggest suppliers of nuts in the European countries, it does not take part in determining the price of the market.

According to FAO’s 2016 report, Georgia is the fourth in the world’s hazelnuts production share.

  1. Turkey – 59.9 %
  2. Italy – 12.2 %
  3. USA – 4.4 %
  4. Georgia – 4.3 %
  5. Azerbaijan – 3.4 %

Samegrelo-Zemo Svaneti, Guria and Imereti are the largest producers of nuts at the country level. These regions produce more than 80% of the hazelnuts in Georgia.

However, this statistic may soon change. Last year in Samegrelo, farmers weren’t able to harvest even half of what they got in 2016 and the prognoses are disappointing.

According to the National Statistics Office of Georgia, the income received from the hazelnut in three months amounted to $ 17 million, while last year it was $ 32 million. The price of hazelnut in Georgia is low and varies from 3 to 5 GEL. In the world market, its price is 6 dollars.

The National Food Agency issued a statement that the damage inflicted by the pesticide amounted to GEL 63 million. That’s why the government started a special program against Stink bug this year.

In June 2017 , hazelnut plantations were given a chemical treatment against the pests. In total, an area spanning 351 villages in the regions of Samegrelo, Guria and Adjara, 53,000 hectares of land was treated, including local plots of land of residents and corn fields. Local residents were given 230,000 liters of treatment and 21,000 traps for the insects.

“The first step is to improve the quality. The main reason for export reduction is the low quality and productivity.” Said Alexander Motserelia, Chairman of the “Nut Production and Exporters Association”.

Horizontal bar chart shows statistics of exported nuts from Georgia, between 2009 and 2017 (Jan-Nov). Export value is shown in millions of USD.

Overall, export rates have fluctuated during the time depicted on the graph. It peaked in 2014 and the lowest rates of exported nuts from Georgia were in 2009 and 2010.