The project \"produce in georgia\" has got a great potential
\"The Association of Young Financiers and Businessmen” held a briefing on Thursday, 7th of August at \"Reportiori” press club, where the importance and changes of the program \"Produce in Georgia” were emphasized.
The program includes simplified access to financial resources, ensured real estate and consultation service. Although, starting from September, 2014, Enterprise Development Agency is implementing a public program in the boundaries of the governmental initiative - \"Produce in Georgia”, which will give stimulus to the micro businesses throughout the country. Total of 20 mil. GEL is invested in this project, with which 3200 businessmen throughout the country will be favored.
The young financiers consider,
that in the environment, where 80% of the turnover in the country is depended
on big businesses and a large portion of business activities are concentrated
in the capital, implementation of such projects and development of micro and
small businesses is essential.
The project \"Produce in Georgia”, in its core, was directed towards experienced businessmen and well formulated business plans, which, so to say, would undergo banking filter, satisfy the required high standards, moreover, the provided loans for a single beneficiary would consists of $150,000 – $2 mil, and given these criteria, it was practically impossible to finance minor projects, which does not require deep knowledge of business from the beneficiary’s side. In a nutshell, the project was directed towards already established businesses and big producers. The changes, that were add to the project with the initiative of Premier Minister, allows micro businesses the possibility of practical implementation of the business ideas and significantly improves the access to financial resources, especially in the \"start-up” phase. Components of financial support include participatory funding of 5 000 GEL for beginner producers, an in case of group of producers, the maximum sum is 15 000 GEL. The participation share of the member of financial support consists of 20%.
The young financiers consider that except financial support, consultation and trainings are also a crucial component, which are also included in the project. Which are important prerequisites for development of business skills and financial support for potential businessmen’s business ideas.
The young financiers proposed certain recommendations to
Premier Minister, Mr. Irakli Garibashvili, Economic Council, Ministries of
Economy and Sustainable Development and Agriculture, which, as they consider,
will contribute to effective implementation of the project. Recommendations are
as follows:
1)To maximally favor group association of producers and cancel (or maximize) the upper line limit of pre-determined financial support. This will help the creation of relatively bigger enterprise, whose production will be more competitive.
2)For ensuring the full business-cycle, we consider, to train potential beneficiaries not only in the field of business start-up, but also in the field of production realization, which nowadays is one of the major problems.
3)The project will help the accumulation of knowledge and experience among the producers, as well as create the minimum base, upon which bigger projects can be built, so we will have a better starting circumstances in 2-3 years. Therefore, the young financiers consider, that for the maximization of future beneficiaries’ motivation and achievement of better results, it would be helpful to add several steps to the initial project (5000 GEL for starting businessmen), for example in case of proper use of initial financial support, the beneficiary will move to the project’s new round, to be provided with the loan for expansion of activities etc. In other words, for project to become long-term, oriented on development and after certain period of time, the result will be experienced, competitive and skilled businessman.
4)To include appropriate mechanisms which will increase both, responsibility and stimulus of the potential beneficiary. (For example, in case of proper use of initial financial support, the refund of fee of participation etc.)
5)To additionally favor business initiatives from highlands or economically deprived regions.
\"The Association of Young Financiers and Businessmen – AFBA” is ready to be involved in the process of project implementation and contribute to this initiative.