Economic Development and Small-Medium-Sized enterprises: A study in the Caucasus region

Along with the importance of micro, small, and medium-sized businesses in developing socio-economic and macroeconomic indicators of a country, the significance of SMEs varies from country to country. This research paper investigates the role of small and medium-sized enterprises in the economic development of various countries, with the main focus on Georgia, Azerbaijan, and Armenia. The economic profile of these three neighbouring countries is different from one another. Azerbaijan is blessed with natural resources. Therefore SME development is not as high as it is in Armenia and Georgia. The main objective of this paper is to identify in which ways SMEs contribute to the economic development of a country. The development of small and medium-sized enterprises and business culture, improving entrepreneurial activities are crucial for future economic development, employment generation, and achieving a higher welfare level of the country’s population. In this research, multiple methodologies have been used simultaneously, including description, comparison, and analysis of existing literature and data.