The European Union and the United Nations Development Programme are supporting small and medium-sized enterprises in Georgia to strengthen competitiveness, create jobs, and access international markets through the Inclusive Access to Markets initiative. The four-year project, implemented from 2023 to 2027, is funded by the European Union with EUR 5 million and co-funded by UNDP with EUR 162,000.
The initiative is designed to help Georgian businesses improve export readiness, comply with European market standards, and build long-term sustainability. From Tbilisi to conflict-affected communities, supported enterprises are upgrading production systems, improving logistics, strengthening value chains, and unlocking new opportunities in the European Union and other global markets.
Background and Objectives
Small and medium-sized enterprises are central to Georgia’s economic development. They represent nearly 90 percent of all active businesses in the country, generate more than 32 percent of total business sector turnover, and provide 60 percent of private-sector jobs. SMEs also account for 60 percent of Georgia’s exports to the European Union, making them a key driver of inclusive development and international trade.
Despite their importance, many Georgian SMEs face challenges in accessing export markets. These include limited compliance with EU standards, weak logistics networks, lack of certification, limited access to modern technologies, and low international visibility. The Inclusive Access to Markets project addresses these barriers by providing targeted institutional capacity development, technical assistance, and business development support.
Since 2023, the project has supported 306 SMEs across Georgia, with 73 percent of them women-led. The initiative has already helped create 960 new jobs, supported 25 businesses to enter EU markets for the first time, and contributed to an average five percent growth in export revenues among participating enterprises.
Key Pillars of the Initiative
The Inclusive Access to Markets project focuses on strengthening the competitiveness of Georgian SMEs and helping them become more export-ready.
Key areas of support include:
- Export readiness and access to European markets
- Business development and institutional capacity development
- Compliance with EU environmental, quality, and food safety standards
- Support for women-led enterprises and inclusive economic growth
- Improved logistics, production systems, and value chains
- Promotion of green technologies and sustainable business models
- Support for businesses in rural and conflict-affected communities
- Development of high-potential sectors such as beverages, fashion, and IT services
- Through this support, Georgian enterprises are improving their ability to meet international standards, attract new buyers, and achieve measurable outcomes in job creation, export growth, and local economic development.
Examples of Supported Businesses
Several Georgian businesses are already benefiting from EU and UNDP support. Cosmo LLC, based in Tbilisi, produces bags and accessories and employs 80 people, almost 90 percent of whom are women. The company exports to the Netherlands, Denmark, France, Italy, and the United States.
Georgian Packaging LLC is upgrading its production and logistics infrastructure to meet European environmental protection and food safety standards. OX-GEN LLC, a biotechnology company in Mtskheta, is using support to begin exporting molecular biology reagents and diagnostic kits to Germany and Hungary.
Champy LLC, located in the conflict-affected village of Ditsi in Gori Municipality, produces healthy apple chips and creates local employment opportunities. The company employs 13 people, including 12 women, exports to the United States and Canada, and is preparing to enter the German market.
Eligibility and Institutional Requirements
The project supports small and medium-sized enterprises operating in Georgia, especially those with the potential to grow, innovate, and access international markets. Priority is given to businesses that demonstrate export potential, commitment to improving standards, and capacity to contribute to job creation and sustainable economic growth.
Women-led enterprises, rural businesses, companies in conflict-affected communities, and SMEs working in promising sectors such as beverages, fashion, IT services, biotechnology, packaging, and sustainable production are among the key beneficiaries.
Participating enterprises are expected to work toward stronger grant compliance, improved business practices, better production quality, and alignment with EU market requirements. The initiative also encourages businesses to adopt sustainable models that support long-term competitiveness and inclusive development.
Why This Matters for NGOs and Development Actors
The EU and UNDP support for Georgian SMEs highlights the growing importance of private sector development in international development programming. For NGOs, civil society organizations, and development professionals, this initiative shows how donor-backed programs can support enterprise growth, women’s economic empowerment, local employment, and community resilience.
The project also reflects wider donor priorities around resource mobilization, inclusive economic growth, export competitiveness, and sustainable livelihoods. By strengthening SMEs, the initiative contributes to broader development goals, including poverty reduction, decent work, gender equality, and sustainable economic transformation.
Call to Action
Georgian SMEs seeking to expand into international markets should closely follow EU and UNDP-supported business development opportunities, especially those related to export readiness, technical assistance, certification, value chain development, and market access.
Organizations working in SME development, women’s entrepreneurship, rural livelihoods, and economic resilience can also use this initiative as a model for designing programs that combine capacity building, market access, and measurable community impact.
Over the next two years, the European Union and UNDP will continue expanding support for Georgian SMEs, helping them unlock export opportunities, strengthen competitiveness, and contribute to a more inclusive and sustainable economy.
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