Small and medium-sized business require funding, especially for the very first. The chief method of obtaining financing is frequently non-formal investors such as friends, family and so-called \”business angels.
In the nation, 55%-72%? of \”business angels\” mostly purchase start-ups or on the earliest stage of development. The exact same situation is Uk where 50-65 % of business angels commit to small and middle sized enterprises with the previously listed stage.
Who are \”business angels\”? The terms \”business angels\” and \”angel investors\” have the similar meaning. In numerous countries \”business angels\” are classified as the second option to finance new ventures and (high-risk) enterprises. For Georgian entrepreneurs, the primary method to obtain funding is a banking loan but access to this way of financing for start-ups is bound.
Perspective for Business Angel Network Increase in Georgia
The government continues to be actively promoting start-ups in Georgia since 2015. The Small-sized Entrepreneurship Promotion Program promotes business development through financial support or consulting services. As many as 1,656 startups were financed via the Stated in Georgia program in 2016 which comprise 58% in the total funded projects. Studies show problems vis-