Since the dissolution of the USSR, Georgia has been en route of transitioning from the command economy model favored within the USSR to a free market economy of present-day Georgia. After a troubling couple of years of its newly acquired independence, Georgia began to climb and first positive developments were visible at the turn of the century. Just a little over 10 years ago, Georgia finally noted a marked growth in its GDP. This spike put Georgia’s economy among the fastest growing ones in Eastern Europe. It also allowed for space for growth in other areas of doing business. All of this makes it easy to find opportunities for smart business investments in Georgia.
Benefits of investing in Georgia
There have been several positive developments that point towards a favorable economic climate in Georgia. According to the Heritage Foundation and its Index of Economic Freedom, Georgia ranks 16thout of 178 countries, marking an 83-spot jump from 10 years prior. This list takes a lot of data into account when coming up with its rankings. It mainly focuses on how the economy of a country is affected by the rule of law, government size, regulatory efficiency, and the open market.
As per the World Bank’s list of ranking countries on the basis of the ease of doing business, Georgia takes 6thplace among 190 countries. In 2005, it stood at number 112, which serves as a testament to how far the country has come. In addition to this, Transparency International’s latest Global Corruption Barometer from 2013 put Georgia at just 5%.
It should also be stated that Georgia has a rather high unemployment rate of 12.6% and a rather low median income, especially compared to most other European countries. In addition to this, Georgia’s external debtis on a constant rise.
Best business investment opportunities in Georgia
For a long time, Georgia’s primary economic sectors were agriculture and tourism. In the present day, the economy is moving more towards the service industry and away from agriculture. By showcasing its impressive progress in recent decades and establishing itself as politically stable and corruption-free, Georgia has solidified as a smart investment destination with low business costs. In addition to this, processes like moving have been made easy. All you have to do is to hire Verified Movers.
Agriculture and food processing
Georgia’s varied climate makes it an ideal place for the production of a wide variety of grain cultures, nuts, and different fruits and vegetables. The soil is rich and so far pesticide-free. Wine-makingis also an excellent small business investment opportunity in Georgia. The reason why agriculture is among the best business investment opportunities in Georgia is because of the fairly low costs of doing business. Water is inexpensive and easily accessible, and the same goes for energy and gas. In addition, the wages in the agricultural sector are substantially lower than the national average. Georgia is also a big exporter and has a free trade agreement with countries like Turkey and Ukraine, which widens your potential market. Another additional advantage of choosing this sector as the way to invest in Georgia is the fact that the government provides incentives for food processing plants.
Tourism is Georgia’s fastest growing industry. It, along with the hospitality industry, provides some of the best small business investment opportunities in Georgia. This country has a lot to offer to its visitors and the activities on offer are quite varied too. Georgia has a very diverse climate and there are upwards from 100 resorts across the country. In addition to this, it is famous for its numerous hot springs, as well as boasting several UNESCO World Heritage Sites. Most international hotel chains that have their Georgian branches are mostly upscale hotels. There is lots of investment potential for mid-class hotels, since these are somewhat lacking.
As a rapidly developing economy, Georgia’s real estate needs are hardly being met with the same fervor. There is an increasing demand for "A" class office buildings and entertainment facilities. Georgia also ranks 6thin the Global Retail Development Index. Thus, this is also an area to look into when looking for best investment opportunities in Georgia. The capital of Georgia, Tbilisi, is also continuously framed as the business hub for the region. The reason is the fact that numerous multinational corporations’ South Caucasus branches operate out of Tbilisi. There are many success stories of foreign investments in Georgia real estate, but there is also still lots of space for growth.
Another attractive opportunity for smart business investments in Georgia is business process outsourcing. As already mentioned, Georgia’s unemployment rate is at 12.6%. Half of that population is between the ages of 20 and 34. This unfortunate reality for the people of Georgia may have a silver lining. This group represents an untapped talent pool of various skill sets. The vast majority of Georgians have finished at least secondary education, and most have continued on. The younger population is well-versed in English and about 70% of the population use Russian very well. Georgia doesn’t impose a social security tax and the personal income tax is flat (20%). This makes outsourcing a particularly favorable sector for smart business investments in Georgia. Some main areas of interest are HR, customer support, finance and accounting, IT infrastructure management, etc.
Why should you invest in Georgia?
Whether your industry of interest is tourism, agriculture, manufacturing, real estate or outsourcing, there are many ways to make smart business investments in Georgia. The government has done all within its power to make Georgia a thriving destination for business investments. Itoffers many incentives and grants, has lowered or made certain taxes non-existent, thus generously lowering the costs of doing business. Numerous success stories are the reason for Georgia’s continued progress. This, in turn, provides more space for additional opportunities to invest in Georgia.