Discussing the Challenges Facing SMEs Seeking Access to Finance
On November 29, Giorgi Khishtovani, Director at PMC Research, presented the main findings and recommendations of –research entitled “Leveraging SME Finance through Value Chains in Georgia” in Astana, Kazakhstan.
The research is focused on studying the challenges facing SMEs in Georgia in terms of access to finance. The paper is designed to analyze several key aspects, especially the cultural, procedural, institutional and regulatory incentives and disincentives encountered by SMEs seeking to access finance. It also looks at the reasons behind such access being blocked or rejected, and assesses the status of the financial knowledge and skills of SME managers in Georgia.
During the presentation, Khishtovani reviewed SMEs’ role in terms of boosting the economy, and the financial literacy and skills of entrepreneurs, barriers to SME finance, and value chain financing analysis. Ultimately, Khishtovani gave policy recommendations to representatives of government, donor organizations, financial institutes and SMEs.
“SMEs can access more finance through involvement in value chains. Development of formal relationships, such as contract farming, could help to increase SMEs’ involvement in value chains and thus improve their access to finance,” outlined Khishtovani.
Naoyuki Yoshino, Dean and CEO at the Asian Development Bank Institute (ADBI), Giovanni Capannelli, the Asian Development Bank (ADB) Country Director for Kazakhstan, and Yergali Dosmagambet, Deputy Director at the CAREC Institute (CI), opened the event. Overall, 50 academics, think-tank researchers, policy makers and students participated in the event.
The event, as well as the research, was supported by the ADBI, the ADB and the CI.
Please kindly follow the link below for detailed information about the project: