World Bank Regional Director: the business environment in Georgia is much more favorable than in many other countries

The business environment in Georgia is much more favorable than in many other countries, said World Bank Regional Director for the South Caucasus Sebastian Molineus commenting on the result Georgia attained in the World Bank Enterprise Survey, in which Georgia ranked in the top 10 countries in terms of low bribery prevalence.

The Enterprise Survey is a very important survey that assesses the health of the country's private sector and is, in fact, one of the few surveys that is global in its coverage,” said Molineus.

He noted that business owners and directors of firms spend much less time on issues related to taxation and administrative issues. Obtaining permits happens faster than in many other countries.

The country has a favorable business environment and the progress that Georgia has made in fighting corruption is obvious,” he noted.

However, Molineus said that some challenges remain to be solved, mainly related to infrastructure, obtaining construction permits, access to funding and labor resources with good education.

In Georgia, business owners and top managers of 581 firms were interviewed for the study from March 2019 through January 2020.

In addition to Enterprise Surveys, the World Bank has published an additional study on the impact of Covid-19 on private companies.

80 per cent of firms experienced a decrease in demand for goods and services. 61 per cent of them reported difficulties in purchasing raw materials to produce. Almost 70 per cent of firms closed at some point, though most of them later resumed operations. About 3 per cent of enterprises had to shut down. In particular, small firms in the field of food and services, including in Tbilisi. It is very important to note that a large number of firms have been able to adapt successfully. In particular, the enterprises that managed to switch to online activities (about 20-30% of firms) were able to increase sales by even 15-20%, which is a very favorable trend in terms of improving the situation,” said Molineus.

On average, 25 per cent of firms have received or are expecting some kind of assistance from the state, he noted.