Peculiarities of startup business functioning in Georgia

Abstract

In modern conditions, promoting the development of small and medium-sized businesses and integrating the country into the world economic system remains a priority direction in Georgia. In this regard, access to financial services is crucial for starting and developing a business.

From this point of view, substantial reforms have been carried out to improve the legal framework in the country. In particular, from August 2022, the updated Law "On Entrepreneurs" came into force, which included 21 amendments and regulated many such vague interpretations, which often caused misunderstandings. Important changes were made in the Tax Code, which regulates the operation of the tax system in the country. Substantial changes were made regarding the renewal of the status of small entrepreneurs and small businesses in the country, tax benefits were established for the development of small entrepreneurship, which is a step forward in promoting business development in the country.

Today, the state pays a lot of attention to the development of start-up businesses. For this purpose, in February 2014, a public law legal entity "Georgian Innovations and Technologies Agency" was established in Georgia as part of the Ministry of Economy and Sustainable Development of Georgia, And on March 5, 2014, by order #1-1/66 of the Minister of Economy and Sustainable Development of Georgia, the statute of the "Georgian Innovations and Technologies Agency" was approved.

The mission of the Agency for Innovations and Technologies is to form the necessary ecosystems for the development of innovations and technologies in Georgia, to promote the commercialization of innovation, to stimulate the use of innovative systems in startups in certain sectors of the economy, and to create an environment conducive to the export of modern technological products and services.