Items filtered by date: Tuesday, 07 September 2021 - NEWSDAY GEORGIA
Tuesday, 07 September 2021 20:18

How to help your business recover after COVID

  1. 1.       COVID hit my business badly. Where can I get some financing to recover?

The EU offers financing and guarantees to local financial institutions to unlock lending. This makes it possible for the local lender to provide more affordable financing to SMEs. For instance, you could benefit from lower-interest loans, longer repayment terms, lower collateral requirements, including some loans based in lari instead of foreign currencies. Check what these banks in Georgia have to offer under the EU4Business Initiative:Microfinance Organisation Crystal, Basisbank, Bank of Georgia, TBC Bank, TBC Leasing.

Here are some examples of SME owners who benefited:

Natia Khelaia, CFO at Food Alliance, a company offering high-quality frozen pastry, received a loan of through the EU4Business-EBRD Credit Line, which includes a 15% cash-back incentives funded under the EU4Business initiative. This enabled the company to add necessary inventory and equipment to its factory, expanding production while increasing efficiency by 50%. 

Mikheil Melua expanded production capacity of his bay leaf production company Black Sea Laurus, acquired modern equipment, and established food safety standards in line with EU practice with support from the EU4Business-EBRD Credit Line. As a result, Black Sea Laurus generated 8 new permanent and some 100 seasonal local jobs, and launched exports to European markets, doubling production and income both.

  1. 2.       How do I apply for a bank loan? What are the requirements?

The EU offers a wide range of options for different types of SMEs. For instance, the EU provides concessionary loans to underserved micro-enterprises and low-income households as well as SMEs in the agri-food sector, manufacturing, services, real estate. There are also attractive opportunities for the businesses seeking to boost trade with the EU and upgrade their businesses to the EU standards as well as for the women-led SMEs.

You can check the conditions for the EU partner banks on the EU4Business website and just call the bank directly. Remember to mention the programme. Very simple!

  1. 3.       I’ve heard about loans, but are grants also available to small companies?

Yes, there are!

For instance, the most efficient and sustainable local solutions to improve food production and reduce rural poverty may get grants under the ENPARD III programme implemented by the UNDP.

  1. 4.       The pandemic showed that there is sustainable demand for my business. How can I get knowledge, advice and skills needed to scale up my business?  

To support SMEs like yours, the EU assists local business associations and agencies, leading to SME growth. Just check all available business development opportunities, pick the one that suits your needs, and get in touch directly with the organisation!

Under the project “EU Innovative Action for Private Sector Competitiveness in Georgia”, nursery owners can attend a series of trainings and workshops to receive practical knowledge on how to align the Georgian production of seedlings with the international standards and best practices of European countries.

The EU project “Green Economy: Sustainable Mountain Tourism and Organic Agriculture” (GRETA), offers support to local initiatives in sustainable gastronomic tourism and organic agriculture. Local businesses can get the relevant knowledge, find out about opportunities of cooperation and earning income, and make new contacts.

Under the ENPARD III project, farmers, rural households, cooperatives and other small and medium enterprises in rural areas can apply for access to better services and inputs. They can benefit from pilot activities for farmers including various types of demonstration, information dissemination, and training.

If you own a business in the construction, tourism or apparel sectors, the Clusters 4 Development – Better Business Sophistication in Georgia project implemented by the GIZ might be of interest to you. It helps increase SME competitiveness through the development of clusters.

If you want to improve your coding and tech entrepreneurship skills, the Development of youth coding and tech entrepreneurial club networks programme may be for you – during the next 3 years, tech clubs will appear in 100 locations across 8 regions of Georgia.

Women-led businesses can benefit from the EU4Business Women in Business Advisory Programme implemented by the EBRD to access know-how to transform their businesses. This covers a wide range of topics, from the technical knowledge to build a website, for example, or to introduce a quality management system that meets ISO standards, improve energy efficiency or improve Human Resources management. These usually involve working with qualified local consultants with a portion of the net costs reimbursed.

Alongside financial support, the following programmes provide consultancy and business development opportunities for SMEs to better utilise the free trade opportunities: DCFTA Initiative East by EIB supports SMEs in the agri-food sector, and the DCFTA Programme by EBRD may help you to resolve the challenges in utilising the opportunities offered by the DCFTA. The DCFTA SME Direct Finance Facility helps SMEs identify quality capital investment projects.

You can even make sure your voice is heard in the national reform process and help your government to better understand issues affecting SMEs like yours! Just check the business enabling environment activities in Georgia supported by the EU.

  1. 5.       I think exporting to the EU could help my business recover. Where do I start?

Indeed, that’s a great way to scale up your business! And we have something interesting to offer.

The EU4Business: Connecting Companies project supports SMEs with exports going to EU countries. You can apply for training, coaching and even matchmaking with businesses in the EU.

The EU4Business Eastern Partnership Trade Helpdesk will facilitate you in identifying trade obstacles and better understanding regulatory and procedural issues in trading goods and services. Soon, this one-stop-shop online platform will be available that will offer access to trade information (tariffs, non-tariff measures, taxes, trade statistics and procedures).

Alongside financial support, the following programmes provide consultancy and business development opportunities for SMEs to better utilise the free trade opportunities: the DCFTA Initiative East by EIB supports SMEs in agri-food sector, and the DCFTA Programme by EBRD may help you to resolve the challenges utilising the opportunities offered by the DCFTA. The DCFTA SME Direct Finance Facility helps SMEs identify quality capital investment projects.

 1.6.       Are there SMEs like me that got help?

There are more than you can imagine!

Between 2019-2020, 55,181 SMEs in Georgia received support through the EU4Business Initiative. Among those, a total of 5,621 entrepreneurs received loans for a total value of €307.25 million under EU programmes that support SMEs. Over 48,642 consultancy services were delivered to SMEs. The income of these supported SMEs rose by 9.4% in 2020 amounting to almost €69.86 million, and 10,055 new jobs were generated as a result of this support in 2020 alone.

Here are some success stories from SMEs like yours:

Gano Melitaurireceived EU4Business support to procure new sewing equipment in the middle of the pandemicso that her company Kombinezona did not have to halt production. Instead, they shifted their focus to making antibacterial face masks and protective gear, were able to employ more people, and distributed a good number of free masks.

Baia Saluqvadze and Levan Bolqvadze, co-founders of Agritrade,purchased a new calibration line, a vertical elevator, and conveyor with the support from the Food and Agriculture Organisation of the United Nations (FAO) and the EU as part of its ENPARD and EU4Business Initiative. Agritrade’s Kakheti hazelnuts can now be directly exported to China, generating more export opportunities.

Click here for more success stories to learn about Georgian SMEs that are doing business in many different areas and have benefitted from EU support.

 The material is prepared within the project "EU NEIGHBOURS east"

Published in Economics

The China International Fair for Trade in Services is underway in Beijing. President Xi Jinping says the Belt and Road Initiative will bring more growth for all nations along the route. CGTN's Sun Ye speaks to Georgia's Ambassador to China, Dr. Archil Kalandia, who shared how his country has benefited from the Belt and Road Initiative and how it's investing more.

Source: https://news.cgtn.com/news/2021-09-05/VHJhbnNjcmlwdDU4MzA1/index.html?fbclid=IwAR1jpEzFPJCI6lAo_QU1vhnfLAIHgkLBM0kCTlXAzRCURE_z7ONPrCQ6kdo

 

 

 

Published in Economics

Irakli Garibashvili, Prime Minister of Georgia met US Congressmen visiting Georgia on his invitation today.

Meeting held at the Government Administration was focused on the highest level of strategic partnership between the United States and Georgia, which is once again evidenced by the growing cooperation between the two countries.

Congressmen visiting Georgia are co-sponsors of the Georgia Support Act initiated at the House of Representatives in the US Congress, for which the Prime Minister of Georgia expressed his gratitude.

US support in the institutional building of Georgia, increased capability of defense, implementation of democratic reforms has been highlighted at the meeting. It was also noted that Georgia continues to carry out reforms for the consolidation of democratic achievements in cooperation with US and other western partners.

The Prime Minister of Georgia expressed gratitude to US Congressmen for the bipartisan support to the sovereignty and territorial integrity of Georgia, in peaceful conflict resolution, non-recognition policy and Euro-Atlantic aspirations of Georgia.

Discussions were also related to the local elections, thereby noting that Georgia stands ready to hold them in a free, fair and transparent manner. It was also noted that the Government of Georgia welcomes the active engagement of international observers in the election process and stands ready to admit as many organizations of such mandate as possible.

Black Sea security was also reviewed at the meeting. It was noted that Georgia remains to be a reliable partner of the USA in the region.

Topics discussed at the meeting included the current situation in the occupied territories of Georgia. It was noted that in the conditions of complicated situation, unlawful occupation of Georgian territories by Russia, uninterrupted provocations and borderisation, visit of US Congressmen is particularly important for the country. Focus was made on the significant role of Georgia in the international security and peace operations. Particularly noteworthy was the crucial role of Georgia in the emergency evacuation of people from Kabul.

Economic relations between the USA and Georgia were also discussed. It was noted that further advancement of trade and economic relations with the United States, as well as the launch of negotiations on free trade with the United States are among the top priorities of the Government of Georgia.

Readiness was expressed at the meeting towards continuing the close cooperation between the USA and Georgia both at the executive and legislative levels for the extension and deepening of the strategic partnership.

Delegation of US Congressmen included: Alexander Xavier Mooney for West Virginia, Bryan George Steil for Wisconsin, Kelly Michael Armstrong for North Dakota, Carol Miller for West Virginia, Rep Ron Estes for Kansas. US Congressmen represent various committees. Visit has been organized by the US-Georgia Friendship Association. It also includes the Association President and Honorary Consul of Georgia in San-Diego Melory Tsipuria.

Meeting held at the Government Administration was attended by David Zalkaliani, Deputy Prime Minister and Minister of Foreign Affairs of Georgia; Ilia Darchiashvili, Head of Government Administration; Giorgi Tsikolia, Plenipotentiary and Extraordinary Envoy of Georgia to the United States of America.

Press Service of the Government Administration

Published in Politics

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