Small and medium-sized enterprises (SMEs) are a cornerstone of Georgia’s economy, generating value, stimulating innovation, and providing significant employment. Recognizing this, the European Union has become a key partner in supporting these businesses through its EU4Business initiative. By offering access to finance, training, and regulatory support, the EU helps Georgian entrepreneurs scale up, become more competitive, and seize opportunities both locally and in European markets. This support is particularly relevant given Georgia’s deeper economic integration with the EU via the Deep and Comprehensive Free Trade Area (DCFTA), which opens up new export opportunities for local firms.
EU4Business in Georgia operates through three main pillars. Access to Finance provides concessional loans, microfinance, and grants via Georgian and partner banks. Business Development Services offer training, mentorship, strategic advice, and cluster support to improve SME management, operations, and export readiness. The Business Enabling Environment pillar supports regulatory reform, policymaking capacity, and alignment with EU-business standards to create a more favorable ecosystem for growth. Together, these interventions help businesses modernize, expand, and become more resilient while fostering an inclusive and competitive market environment.
The impact of EU4Business is measurable and significant. According to the Citizens’ Summary 2025, in 2024 alone, 40,801 SMEs received support, generating an additional €261.4 million in income and creating 51,976 new jobs. Supported SMEs also recorded a 12.6% growth in turnover and a 12.6% increase in exports. At the same time, gender inclusion remains a focus, with 40.4% of businesses supported by EU4Business in Georgia being owned or managed by women. Across 54 active projects with a combined budget exceeding €311 million, the EU has contributed to tangible economic development that strengthens both local communities and Georgia’s overall competitiveness in European markets.
The effects of this support are evident in the stories of individual entrepreneurs. Eka Boqolishvili, a maker of traditional Georgian sweets, upgraded her machinery with EU4Business support, enabling her to fulfill large export orders with consistent quality. Nino Ioseliani, founder of the textile startup Colours of Caucasus, benefited from EU-backed cluster support, which helped her scale and compete more effectively in international markets. Young entrepreneur Erna Pepanyan used an EU grant to develop her family’s guesthouse, noting that taking small steps and believing in her potential were key to her success. Others, like Irina Gloveli and Tekla Mamageishvili, leveraged advisory services to improve financial reporting and strategic planning, resulting in increased profits and business efficiency. Even small home-based ventures, such as Manana Chqareuli’s seamstress business, grew into sustainable enterprises with access to EU-associated financing.
Entrepreneurs also highlight the role of cluster networks, as George Mzhavanadze explained: “Through the cluster, we can consolidate resources and compete with experienced international companies … we are linking the Georgian companies … with similar clusters in Europe.”
Despite these successes, challenges remain. The EU Business Climate Report Georgia 2024 indicates that many companies continue to face political uncertainty and workforce skill gaps, which could hinder long-term growth. Compliance with export standards, particularly for the EU market, also presents difficulties, requiring technical knowledge, certification, and capacity building. While women are well represented in advisory programs, access to finance for female entrepreneurs and rural business owners remains an area for further support.
The EU’s engagement with Georgian SMEs through EU4Business is more than financial aid; it is a long-term investment in economic resilience, competitiveness, and inclusion. By helping businesses improve their capacity, scale operations, and meet international standards, the EU is fostering growth and deepening Georgia’s economic ties with Europe. Looking forward, continued focus on sustaining the jobs created, expanding access to finance, strengthening export competitiveness, and supporting skills development will be crucial for ensuring that Georgian SMEs remain vibrant and globally competitive.
- 40,801 SMEs in Georgia received support in 2024. Together, they generated an extra €261.4 million in income and 51,976 new jobs. Turnover grew by 12.6%, and their exports increased by 12.6%.
- In 2024, there were 54 active EU‑funded projects in Georgia, with a combined budget of over €311 million
- As of 2023, 40.4% of the businesses supported by EU4Business in Georgia were owned or managed by women.
By Team GT
