Functional Analysis and Development of Roadmap for State Aid Programmes GE2001

The primary goal of this project is to conduct comprehensive evaluation of GoG state-aid programs and provide evidence-based recommendations for modernization of state-funding programmes in Georgia in order to better address MSME needs and effectively support MSMEs in overcoming existing challenges contribute to the modernization of state-funding programmes in Georgia. This will be done via result-oriented methodology and roadmap which will assist MSME development through a demonstrably more cost-effective use of increasingly limited taxpayer resources.

The main beneficiary and counterpart (Reform Owner) of the project will be the PM Office (as defined by the ToR for this project). Other key beneficiaries and direct counterparts (key stakeholders) will be the Ministry of Economy and Sustainable Development (MoESD) and the Ministry of Environmental Protection and Agriculture (MoEPA), given that these institutions define priorities and oversee the work of key private sector support agencies including: Enterprise Georgia (EG), Georgia's Innovation and Technology Agency (GITA) and Agriculture and Rural Development Agency (ARDA). Within the scope of the project, a steering committee comprising the MoESD, MoEPA and Prime Minister's Office will be created.

The Project will be implemented in three Phases: (1) Assessment of current capacity and performance of existing state-funding programmes; (2) Evaluation of state funding programmes and development of recommendations for the future operations of the state-funding programmes based on international good practices, (3) Preparation of the five-year roadmap for the implementation of recommendations. It will form the basis for modernization of the State-aid programmes for MSMEs by developing an evaluation methodology with clear KPIs and delivering the Road Map of State Aid Programmes based on the needs of Georgian MSMEs. The Road Map's recommendations will be the result of thorough analyses and evaluations of past programmes' performance, the regulatory environment and institutional setting, as well as views of public and private sector representatives on the effectiveness of those programmes. It is noteworthy that the project has a special focus on analysing GESI related data in entrepreneurship and identify priorities for women and vulnerable groups entrepreneurship improvement. This will entail analysis of status quo on the promotion of women and vulnerable group entrepreneurship in Georgia, transfer of international experience in this field and the development of recommendations for further improvement.