Historical Backgrounds of Entrepreneurial Development in Georgia; An overview of Business Environment, Achievements and Challenges

The present paper analyses main characteristics of entrepreneurial development throughout Georgian history. Since the ancient times, geographically located at the crossroads of trade routes connecting the west to the east, also the south to the north, fortified cities emerged in Georgia- the centers of trade, industry and craft. Unlike European medieval cities which achieved their independence earlier, the Georgian cities even in the late Middle Ages were not independent. Thus, this delayed the development of entrepreneurial skills and liberalization of economy. The amkaris (Georgian word for guilds) in the 17(th) and 18(th) centuries were the heirs of the analogous ancient Georgian entrepreneurial unions. In 19(th) Century, the breaking up of the Georgian feudal system and the establishment of a Russian administration led to increase the gap and conflicts between social strata, and ethnic groups and its undesired consequences harmed entrepreneurial activity. Following it during the command economy period of Soviet Union the word "entrepreneurship" was associated mainly with criminal activities. After collapse of former USSR the new inexperienced entrepreneurs appeared confronting challenges to adopt market economy. The brief survey traces the transition from socialism to the market economy in Georgia, some current challenges and achievement in this respect.