Deadline: 11-May-22
Applications for Micro and Small Entrepreneurship Promotion Program are now open that aims to develop micro and small businesses, establish a modern entrepreneurial culture and create new jobs, as well as reduce the negative economic impact caused by the new coronavirus pandemic.
Through financial assistance under the program, both existing and potential entrepreneurs are given the opportunity to start their own business, and the existence of a consulting component ensures the knowledge of stakeholders in doing business.
The two most important components of the program are the financial support and technical assistance needed to start a business and / or expand existing equipment.
Stages of the Program
Participation in the program consists of several stages:
- Business Ideas Competition – Business ideas / applications are registered online as part of an idea competition.
- Review / Evaluation of Applications (Business Ideas) – Business ideas will be reviewed / evaluated by the contractor organization according to the methodology and evaluation criteria established and pre-developed by the Agency.
- Training of Initial Candidates in Project (Business Plan) Development – For successful business application authors, the contractor will provide training in entrepreneurship (including tax issues) and business plan development.
- Business Plans Competition – Applications for the Business Plans Competition are accepted online.
- Evaluation of the submitted project (business plans) – The review of business plans will be carried out by the contractor, based on the methodology and pre-designed criteria and evaluation criteria established by the agency, as well as based on the interview with the beneficiary. Additionally, the place of business with the selected candidates will be monitored.
- Expenditure of co-payment – Before receiving a grant from the agency, the beneficiary must spend his / her co-payment.
- Grant Amount Enrollment – By the Agency, the Grant Amount will be credited to the Beneficiary’s account after the Beneficiary has completed the program activities with the Co-Participation Amount and the submission of complete procurement documentation.
- Intermediate and final monitoring – within the framework of the program, the works and purchased assets, as well as the relevant documentation are inspected / inspected on the spot.
- Additional Trainings – Additional trainings are provided by the contractor upon the request of the beneficiaries in agreement with the agency.
Funding Information
The financial support provides a targeted grant of a maximum of GEL 30,000 for potential beneficiaries. In the pilot regions – Imereti, Guria, Kakheti, Racha-Lechkhumi and Kvemo Svaneti, in the regions in the amount of maximum 40,000 GEL. Not less than 90% of the funding received under the project should be used for capital expenditures and not more than 10% for working capital.
Priority Activities
The following activities are prioritized within the program:
- Intellectual service-oriented projects
- A project focused on accommodation and tourism services
- Highly inclusive sector-oriented projects
- Starting a new business
- Starting / expanding a business by a female entrepreneur
- Starting / expanding a business in a rural / highland village
- Start / Expansion of Business by Internally Displaced Persons – IDPs
- Starting a business by people with disabilities and expanding the existing one
- Starting a business by a young (including 29 years old) entrepreneurial entity and expanding an existing business.
Criteria for Participation
Any person can participate in the program if he / she meets the following criteria:
- Is an adult (reached 18 years old) citizen of Georgia
- Is not a public servant
- Not a Beneficiary of the Micro and Small Entrepreneurship Promotion Program 2020 / a beneficiary already funded more than once in 2015-2018 (for more information, see the program resolution)
- Declares readiness, in case of winning the business plan competition, to be registered as a taxpayer natural person, who has been assigned a taxpayer identification number, except for a natural person registered as a VAT payer.
- The new beneficiary of the program, in case of receiving a grant, must make his / her own monetary contribution in the amount of 20% of the requested grant, and in the case of highland settlements in the amount of 10%.
- In case of obtaining a grant, the existing beneficiary of the program must make a cash contribution of 50% of the requested grant amount, and 25% in highland settlements.
- Financing business activities defined in the resolution of the same program, except for the production of primary agricultural products and services related to the primary production of agriculture, which is not prohibited for taxpayers. (See appendix, list of activities).
- Note: The author of the business idea should not be registered as an entrepreneur-entity with the status of a legal entity,
- eg LLC, JSC, cooperative, partnership, etc.
For more information, visit https://www.enterprisegeorgia.gov.ge/ka/Business-Development/microgrants