Dear Sir/Madam,

ISET Policy Institute and International School of Economics at TSU (ISET) jointly with the Friedrich-Ebert-Stiftung South Caucasus Office invite to a presentation of the Georgian version of the study “The Role of Small and Medium-sized Enterprises in Development”.

With: Professor Dr. Hansjörg Herr, Berlin School of Economics and Law and Dr. Zeynep Nettekoven, European Academy of Work at Goethe University Frankfurt

When: 8 October 2019, 18:30

Where: ISET Conference Hall, 16 M. Zandukeli Str., Tbilisi

Language: English

Background Information: Small and medium-sized enterprises (SMEs) play an important role for development. Of importance are Schumpeterian SMEs, which include start-ups that trigger innovation, boost productivity and bring about structural change. Normal SMEs, which only adjust to market pressure, are also important for development and employment.

Germany is a role model for SMEs. This is due to several important factors: Germany’s local banking system, which is not profit oriented (made up of Sparkassen, or savings banks); the dual vocational system, with its combination of practical and theoretical
education; the high social capital of strong employers’ associations and trade unions; government support of SME clusters and a big, government-owned development bank (the KfW).

SMEs in developing countries typically suffer from limited access to long-term and affordable finance, insufficient institutions for developing a skilled class of entrepreneurs and workers, a low income, and poor policies to support economic and social upgrading of SMEs.

Economic upgrading in developing countries is necessary, but it will not be successful without social upgrading. Germany – with its high social capital within the framework of a social market economy, its financial and education system, and its government support for SMEs – can stimulate debates about SMEs in developing countries.

Best Regards,
Salome Alania

Project Coordinator
Regional Office South Caucasus
Friedrich-Ebert-Stiftung

Apt.7, Bldg.4, Nino Ramishvili str.
Tbilisi 0179, Georgia
Tel: (+995 32) 2250728 / 2912695 / 2912615
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