Georgia, Tbilisi, Dec.01/ Trend , N.Kirtskhalia /
Most Georgian companies are in a pre-crisis or crisis state, and activities must be launched to salvage these firms, the Georgian Employers Association reported this week, attributing the slumping business to the 2008 Russian-Georgian war and global economic crisis.
As a result of their research, the association revealed that sale indicators and staff have decreased at surveyed companies. The five main factors hindering business development were named credit resource deficit, tax system, infrastructural problems, imports and unfair competition.
Companies require support for local production, and long-term and cheap credit, the association reported, adding that these are the most effective steps to resolve the crisis.
The association also developed recommendations for the country's economic development programs, projects and initiatives. In accordance with the recommendations the state must amend the tax code to support small-, medium- and large-sized businesses. Budget stimulation should also be calculated.
The association conducted research in agreement with the Economic Development Ministry with financial assistance from the UNDP.
About 45 companies participated in the survey.
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