Characteristics of Social Capital of Small Entrepreneurs in Georgia

Abstract

Research has shown that in small businesses in Georgia, social capital, as the link between social network and business,
is unused. Social networking does not significantly affect employment or entrepreneurship quality.
Social integration with the support from the government is a tool to overcome business problems. Relationships with
CSOs are the most consistent sources of social capital. Owning information and connecting with local government is
not enough for entrepreneurs in Georgia to boost their business.
As the study shows, the important factors for starting a business are expanding the diversity of business relationships
and networks, training in business issues conducted by various organizations, developing information
channels, consulting institutes, and networking. Needs, which are common in business, include increasing access to
loans and technology, institutional support to trade with products / services by using activities such as targeted
employment trai-nings (for example, hospitality and hotel management services) in order to improve and expand
entrepreneurship skills and business relations and partnership in terms of supply chain strategy.
It is noted that in Georgia important business-supporting state programs are being implemented. However, it
should also be emphasized that direct impacts on the development of small entrepreneurship are neither
institutionally nor financially effective. Recommendations are presented for providing educational and consulting
services, access to finance, information on networks and business programs.