Georgia became startup-friendly country especially after the opening of the First Technology Park in 2016, Tbilisi. Tech Park started providing young creators with high quality equipment and great possibilities to turn their ideas into reality and it gave a big stimulus to young people to develop their businesses and contacts with potential investors.
In 2016, newly started project Start-up Georgia attracted 726 applicants from different regions of Georgia. 146 applicants were regarded as high technology business ideas and 580 were submitted as creative and innovative ideas. These entrepreneurs got great financial and theoretical support for developing their businesses.
Eight lucky winners of these startups became even globally known after presenting their innovative projects in front of 50 American investors in Silicon Valley, in 2017. Georgian start-ups also received specially organized training from local experts and attended special event dedicated to our country too.
Setting up a business in Georgia is a straightforward process and it creates even more business-friendly atmosphere for newcomers. The system is very efficient because it is based on promotion of the establishment of new enterprises.
For registration any start-up or firm must follow these 3 stages in Georgia: 1) Pay the registration fee – 100 GEL but if it’s very urgent one can fasten the procedure by doubling this amount, 2) Register the company with the Entrepreneurial Register and get an identification number and certificate of state and tax registration with no charge and 3) Open a corporate account in the bank from 10 to 100 GEL (depending on the bank) and the most important, all these procedures only take 1 day to complete.
Nowadays, Georgian startups also have great ability to show their products in various exhibitions, free-markets, etc. among of which Startup Market Expo’s annual exhibition is the guarantee of success for both small businesses and startups which introduce their products in front of potential customers. Startup Market Expo was already held in 2016 and 2017. Fortunately, organizers aren’t planning to lose pace.
Lately, banks in Georgia started making contribution in developing businesses. Most of them offer financial or non-financial support to business newcomers and have specially composed terms of loans for them, with personal payment schedule. These programs support and stimulate new startups and the information about each program is easily accessible for any interested person on banks’ online platforms.
It must be mentioned that according to the World Bank Group’s Doing Business 2018 report, Georgia has improved its performance by 7 positions over the past year, and has moved from 16th to 9th place. Doing Business rating encompassed 190 countries, and Georgia is among the leading 10, which objectively reflects the results of the economic reforms of the Georgian Government.
Of course entrepreneurial spirit of Georgia has a positive effect on the country’s economy as a whole but each entrepreneur who sets up a business, should make it clear will their project succeed or not before taking on financial risks in the hope of profit, as long as, companies and people standing on the another side are expecting the same from them too.
Author: Tamar Devdariani © BUSINESS GEORGIA