Concerns of Georgian Business – The Private Sector Exposes the Breaking Factors
The business mood index decreased the most in the last 2 years.
In the first quarter of 2019, the index of the Georgian business mood has reduced and counted 22.6 points, which in comparison to the previous quarter is a 7.4 point lesser indicator.
The questioned 44 large and 116 large size enterprises most pessimistically estimate their last 2 year development.
According to the research done by ICC, BIA and ISET, the most pessimistic in estimating the situation are the representatives of the enterprise and agriculture sectors.
3 out of 10 small and medium businesses think, that the main problem for them appears the lack of demand on the market. 32% of the interviewed companies also site demand as their primary issue. The picture is different in the large business, where 29% thinks that the main problem is the access to the finances. The second biggest issue for the large businesses is the lack of the working force. 21% of the large companies state this to be the barrier for the right development, whereas for the 6% of the large companies the issue remains the production equipment and the absence of the demand on the market.
Unlike the large business, the working force stands not as a barrier for the small business. Only 8% claims that this might be the main problem for developing the business. As for the production equipment
5% more than those interviewed in large businesses, the 11% of the small businessmen state that the equipment issue as the main issue. On the question, “What are your expectations regarding your company in the next three months”, 49% of the companies respond that they are hoping for improvements, 13% thinks that the situation will only get worse, whereas 38% expects no changes.
In addition, 14% out of 160 interviewed companies awaits that in the next three months the number of the employees in their companies will go down. 29% is counting on the growth whereas 58% is expecting no changes at all.