With Estonian support, Georgian small businesses expanded into European markets and created nearly a thousand new jobs

With the support of Estonia and UNDP, Georgian small and medium-sized enterprises have created 960 new jobs and helped 25 companies enter the European Union market for the first time in the past three years. The ESDTEV-funded program has strengthened the export capacity of 306 companies and brought new economic growth to Georgia with the help of Estonian know-how. 

Representing the majority of all active businesses in Georgia, SMEs play a vital role in the country’s economic development. Many are investing in innovation, green technologies and sustainable business models while seeking to expand beyond the domestic market. Although around 13 percent of Georgian SMEs already export their products and services, many more are looking to access international markets, particularly in the European Union. 

Through the Inclusive Access to Markets project, the Estonian Centre for International Development (ESTDEV), the United Nations Development Programme (UNDP) and Visionest Institute are helping Georgian entrepreneurs turn this ambition into reality. Some are already making waves in international markets. 

Since 2023, 306 SMEs across Georgia, 73 percent of which are women-led, have strengthened their competitiveness and export readiness through the programme’s tailored training, consultancy, technical assistance and business development support. The results are already tangible: 960 new jobs created, 25 businesses entering EU markets for the first time and participating enterprises reporting an average five percent growth in export revenues. 

According to Anu-Mall Naarits, the CEO of Visionest Institute, these results show what becomes possible when ambitious entrepreneurs receive practical, long-term support.  

“Georgian businesses already have creativity, strong products and the determination to grow; our role is to help them turn that potential into a structured and credible path towards international markets. This means understanding what foreign buyers expect, strengthening positioning and business processes, meeting European standards and building partnerships that last.” 

She added that when companies enter the EU market, increase their exports and create new jobs, the impact reaches far beyond individual businesses. “It strengthens local communities, economic resilience and Georgia’s ability to compete internationally.” 

With support from ESTDEV and Visionest Institute, these businesses are upgrading production processes, improving logistics, strengthening value chains and working towards compliance with EU standards. As production grows and exports increase, they are creating employment opportunities, stronger communities and a more resilient economy. 

“What we see through these businesses is what the European Union is really about: helping small and medium-sized enterprises in Georgia turn ambition into success. We are enabling businesses to innovate, meet European standards, access new markets and become more competitive,” said Nicholas Cendrowicz, head of Cooperation at the European Union Delegation to Georgia. 

Cendro explained that the tangible benefits of this support are evident in stronger local economies, new employment opportunities and businesses contributing to Georgia’s sustainable and prosperous future. “The success stories we have helped create over the past 30 years demonstrate the real impact of the EU–Georgia partnership and the vital role SMEs play in shaping the country’s economic development.” 

From local success to global reach 

SMEs are the backbone of Georgia’s economy and a key driver of its future growth. Women lead more than one-third (33.9 percent) of these businesses, up from 29 percent in 2024. 

Today, SMEs represent nearly 90 percent of all registered businesses in Georgia. They generate 32.3 percent of total business sector turnover, employ 60 percent of the private-sector workforce and account for 60 percent of the country’s exports to the EU.  

According to research by the EU and UNDP, beverages, fashion, and IT services offer promising opportunities for Georgian businesses to expand into EU markets. 

At the same time, further growth will depend on improving compliance with EU standards, strengthening logistics networks and increasing the international visibility of Georgian brands. 

ESTDEV’s Chief Operating Officer, Margus Gering added that Estonia knows from its own experience what it takes for a small business to meet European standards and reach new markets.  

“That is exactly what we can offer Georgian entrepreneurs: not only funding, but the know-how to turn ambition into export success. For Estonia, this is not charity but shared interest. Every Georgian company that establishes itself on the European market strengthens the wider neighbourhood we all depend on. The 960 new jobs and 25 first-time entrants to European markets show that this approach works – we don't simply hand out support, we build lasting economic self-reliance together with our partners.”