From bustling cities to conflict-affected villages, small and medium-sized enterprises (SMEs) are creating jobs, opening new opportunities, and driving Georgia’s economy.
Representing nearly 90 percent of all active businesses in Georgia, SMEs play a vital role in the country’s economic development. Many are investing in innovation, green technologies, and sustainable business models while seeking to expand beyond domestic markets. Although around 13 percent of Georgian SMEs already export their products and services, many more are looking to access international markets, particularly in the European Union.
Through the Inclusive Access to Markets project, the European Union and the United Nations Development Programme (UNDP) are helping Georgian entrepreneurs turn this ambition into reality.
Since 2023, 306 small and medium-sized enterprises across Georgia (73 percent of them women-led) have strengthened their competitiveness and export readiness through tailored training, consultancy, technical assistance, and business development support. The results are already tangible: 960 new jobs created, 25 businesses entering EU markets for the first time, and participating enterprises reporting an average five percent growth in export revenues.
Ahead of Micro-, Small and Medium-sized Enterprises Day on 27 June, Nicholas Cendrowicz, Head of Cooperation at the European Union Delegation to Georgia, and Douglas Webb, UNDP Resident Representative in Georgia, visited several Georgian businesses benefiting from this assistance:
Cosmo LLC (Tbilisi) – a fast-growing producer of bags and accessories employing 80 people, almost 90 percent of whom are women. The company exports its products to the Netherlands, Denmark, France, Italy, and the United States.
Georgian Packaging LLC (Tbilisi) – a manufacturer of environmentally friendly paper cups, takeaway boxes, bags, wrapping paper, and self-adhesive products. The company has upgraded its production and logistics infrastructure to comply with European environmental protection and food safety standards and increase export readiness.
OX-GEN LLC (Mtskheta) – a biotechnology company harnessing EU support in its first exports of molecular biology reagents and diagnostic kits to Germany and Hungary.
Champy LLC (Ditsi, Gori Municipality) – an innovative producer of healthy apple chips located in a conflict-affected village, where it creates employment and economic opportunity for the local community.
The company employs 13 people, including 12 women, exports to the United States and Canada, and is preparing to enter the German market.
With support from the European Union and UNDP, these enterprises are upgrading production processes, improving logistics, strengthening value chains, and working towards compliance with EU standards. As production grows and exports expand, they are creating employment and opportunity for stronger communities and a more resilient economy.
“What we see through these businesses is what the European Union is really about: helping small and medium-sized enterprises in Georgia turn ambition into success. We are enabling businesses to innovate, meet European standards, access new markets, and become more competitive. The tangible benefits of this support are evident in stronger local economies, new employment opportunities, and businesses contributing to Georgia’s sustainable and prosperous future. The success stories we have helped create over the past 30 years demonstrate the real impact of the EU–Georgia partnership and the vital role SMEs play in shaping the country’s economic development,” said Nicholas Cendrowicz, Head of Cooperation at the European Union Delegation to Georgia.
“Small and medium-sized enterprises are central to Georgia’s economic future. They account for nearly 90 percent of active businesses, generate more than 32 percent of total business sector turnover, and provide 60 percent of private-sector jobs. These businesses have the ambition to grow, innovate, and compete internationally. Often, they need support to access certification, modern technologies, and new markets. This is where our partnership can make a tangible difference,” said Douglas Webb, UNDP Resident Representative in Georgia.
Over the next two years, the European Union and UNDP will continue expanding support for Georgian SMEs, helping them unlock export opportunities, strengthen competitiveness, and build a more inclusive and sustainable economy.
From Local Success to Global Reach
SMEs are the backbone of Georgia’s economy and a key driver of its future growth. Women lead more than one-third (33.9 percent) of these businesses, up from 29 percent in 2024.
Today, SMEs represent nearly 90 percent of all registered businesses in Georgia. They generate 32.3 percent of total business sector turnover, employ 60 percent of the private-sector workforce, and account for 60 percent of the country’s exports to the European Union. [Source: GEOSTAT]
According to EU and UNDP research, beverages, fashion, and IT services offer promising opportunities for Georgian businesses seeking to expand into EU markets.
At the same time, further growth will depend on improving compliance with EU standards, strengthening logistics networks, and increasing the international visibility of Georgian brands.
Micro-, Small and Medium-sized Enterprises (MSMEs) Day
MSMEs Day, celebrated worldwide on 27 June, highlights the vital role of micro-, small and medium-sized businesses in creating employment, driving innovation, and fostering sustainable growth.
About the European Union
For more than 30 years, the European Union has built a close partnership with Georgia, supporting its development through knowledge, experience sharing, expertise, innovation, and financial aid. The relationship between the EU and the people of Georgia is based on shared values of peace, freedom, democracy, human rights, and inclusive economic growth. More about the EU’s support for Georgia: https://eu4georgia.eu/the-european-union-in-georgia
Inclusive Access to Markets
With funding from the European Union and in partnership with the Estonian Centre for International Development (ESTDEV), UNDP is implementing the Inclusive Access to Markets initiative, empowering Georgian SMEs to build their capabilities, enhance value chains, and secure access to the EU and European markets. The four-year project (2023-2027) is funded by the European Union (EUR 5,000,000) and co-funded by UNDP (EUR 162,000).
Source: UNDP
