Public Procurement Challenges and Opportunities in Small and Medium-Sized Enterprises (Case of Georgia)

Abstract

The paper analyzes the role of small and medium-sized enterprises in the development of Georgian economy. It is justified that the development of effective mechanisms of public procurement in this type of enterprises will greatly contribute to the growth of GDP, as well as play an important role in the structural change of the economy, in the formation of a competitive environment, in the development of private entrepreneurship, in the modernization of the consumer market and in solving socio-economic problems. The contribution of public procurement to GDP growth is studied using several key indicators: awareness of public procurement, level of involvement in public procurement, funds management, tax procedures, access to relevant information and data, security. The work is done using the bibliographic and empirical research methodology. Analysis, synthesis, induction and other methods are used to determine data selection, grouping, similarities and differences. Quantitative and qualitative research has been conducted to identify challenges and evaluations according to procurement indicators; Through meetings with focus groups, procurement barriers are specified, directions for service improvement are determined. The research examines the experience of the leading states in public procurement in small and medium-sized enterprises, and analyzes the procurement support programs and services. It is concluded that the search for challenges in public procurement in small and medium-sized enterprises in Georgia should be conducted taking into account the examples and experience of successful countries in the field of public procurement. According to the bibliographic and quantitative research, the main challenges of public procurement in small and medium-sized have been identified: information uncertainty, lack of tender preparation skills, less access to electronic tenders, lack of electronic platforms, ignorance of procurement procedures, time-consuming and strict procurement process, and others. In addition, the factors of information uncertainty and inability are considered to be the main challenges for small and medium-sized enterprises in Georgia. The article proposes the possibilities of strengthening small and medium-sized enterprises with local production support mechanisms through state procurement. The following questions are answered: how it will facilitate access to public procurement opportunities for small and medium-sized enterprises, how it will improve the general economic environment, how much it will facilitate access to resources and fair competition, how much it will ensure inclusive and sustainable development of the economy.

Formation of Economic Security of Small and Medium-Sized Enterprises in the State Economic Security System

“…The effective development of small and medium-sized businesses remains at the forefront of researchers' attention, with scholars such as Tsekhanovskii Z. [8], Virenbeck H. [8], Kharaishvili E. [9], Natsvlishvili I. [9], Lobzhanidze N. [9], and others investigating factors influencing the economic security of small and mediumsized entrepreneurship, methods for assessing economic security, and the role of the state in ensuring the economic security of SMEs.…”

“…[8], Virenbeck H. [8], Kharaishvili E. [9], Natsvlishvili I. [9], Lobzhanidze N. [9], and others investigating factors influencing the economic security of small and mediumsized entrepreneurship, methods for assessing economic security, and the role of the state in ensuring the economic security of SMEs. However, there is still a need for further research on the issues related to the formation of economic security for small and medium-sized entrepreneurship.…”