Financial Security of Small and Medium Enterprises in Georgia: Challenges and Strategic Prospects

Abstract

Small and medium-sized enterprises (SMEs) are a vital component of the Georgian economy and play a significant role in shaping economic growth, employment, regional development, innovation, and the competitive environment. Furthermore, the sustainability of SMEs largely depends on their financial security. Limited financial resources, dependence on bank financing, the cost of credit, liquidity issues, and currency and interest rate risks pose serious challenges for SMEs. The aim of this study is to identify the main financial security issues facing SMEs in Georgia, assess their causal factors, and identify areas for improving financial sustainability. The study is based on secondary data and utilizes reports and statistical materials from the National Statistical Office of Georgia, the National Bank of Georgia, the World Bank, the OECD, and other international organizations. Descriptive and comparative methods of analysis were used.