SYSTEM STRUCTURE OF SMALL BUSINESS (RESUME)

BY. Omar Shurgaia

In the conditions of market relations, the sphere of functioning of small business is confined neither to some particular branch of economy nor to this or that form of property: small enterprises can function in any branch and sphere;

they can be established in private, state and corporation sectors; they can be based both on the private and state cooperation, group and mixed property. Proceeding from the above-mentioned, we could describe the system structure of small business in this way: in accordance with the size – smallest, small, little and middle agents; in accordance with the kinds of economic activity – production, trade, service, intermediate, finance and credit, insurance, conglomerates; in accordance with organization and legal framework – individual labour activities, small family economy, small individual economy; in accordance with organization and property basics – individual proprietorship, enterprise of individuals’ group, enterprise of social organization, municipal enterprise, state enterprise, mixed enterprise; in accordance with economic and legal responsibility – society of joint and several responsibilities, master limited partnership, limited liabilities company, joint stock company, cooperative, etc.
Similar to other post-Soviet countries, structure of small business is gradually formed in Georgia on the basis of the development of market relations. 95,6 % of small enterprises fall at the share of non-state sector, 4,5% fall at the share of state sector. An overwhelming majority of small structures – 65% – functions in the sphere of trade, repair of household goods and personal consumption articles. Small enterprises in the state sector are distributed more or less equally in accordance with economic activity. Yet, a great majority of small enterprises in non-state sector – 81,4% – are concentrated in the trade and service sphere. Regional structure is also characterized by a particular explicitness: 71,7% of small business is located in five regions, 28,7% are in the rest six regions. Distribution of employed population among the organized (registered) and non-organized (non-registered) business is irrational, which causes inefficiency of the use of labour force. The formation of optimal structure of small business contains many reserves for the strengthening of its potential. Not only economic growth rate, but also the solution of heavy social problems are much dependent on these resources.