Research on youth entrepreneurship stimulation in Georgia: understanding the barriers and recommending reform interventions

The study attempts to identify the barriers youth entrepreneurship in Georgia faces and proposes interventions, which could be led by relevant actors within the ecosystem, to overcome the challenges.

Following Isenberg’s Model of Entrepreneurship as the main analysis framework, the study address the role of the current Policy, Finance, Culture, Supports, Human Capital, and Markets in the development of the entrepreneurship ecosystem in Georgia. The document further provides broad diagnostics of the ecosystem, map the existing players and initiatives, identify gaps and major weaknesses of each domain, and provide insights into addressing them. The research findings are compiled based on the available statistical data, literature, and previous studies on Georgian and regional countries’ ecosystems, as well as interviews with key public and private actors of the ecosystem, donor institutions operating in the field, universities, and young entrepreneurs. The findings revealed both a favourable environment for supporting entrepreneurship in the country and the shortcomings of the ecosystem. For instance, the policy domain and support infrastructure stood out in terms of creating a supportive environment for start-up development. Nevertheless, there is still the need to address particular challenges related to cultural attitudes, underdeveloped alternative financing, and a lack of entrepreneurial skills in Georgia.

The report was prepared by ISET Policy Institute in collaboration with International Labour Organization within the Project “Inclusive labour markets for job creation in Georgia”, funded by the Government of Denmark (Ministry of Foreign Affairs of Denmark).