Mikheil Chkheidze

Title: 'SME-led Economic Development in Transition Countries: Comparative Analysis of Georgia and Estonia'

Supervisor: Piret Tõnurist, MSc., Junior Research Fellow

Opponent: Imre Mürk, MA, Junior Research Fellow

Defense: 6 June 2014


Abstract: The presented Master thesis will analyze the role of SME‟s development as a key factor of economic growth of country, taking into account the importance of SMEs during the transition process of Post-Soviet countries. It identifies the role of public policy and innovation for development of business environment in transition countries. The empirical part is based on a comparative analysis of case study of two Post-Soviet countries – Georgia and Estonia –, their choices fordevelopment, successes and failures during the implementation of policies for SMEs development. Based on the comparative analysis the paper will argue that the SME-sector can improve the beneficial economic and social condition for a country only with support of policies and programs implemented by government and via institutional development. The comparative analysis of Georgia and Estonia will allow detectingthe failures of Georgian government in policy making andthe problems or benefits which country can face in its way of European integration on the example of Estonia.

Keywords: small and medium sized enterprises (SMEs), innovation, public policy, transition country, economic and social development, countries in transition (CIT).