Startups in Tbilisi: what is needed to accelerate their development?
In recent years, Tbilisi has begun to develop a startup sector. There now are more than 100 small companies, working to develop scalable solutions for problems in Georgia and beyond.
Many of these startups are supported by the government through a targeted programme. Several startups have international ambitions, and some founders have gone to highly regarded incubator programmesin Europe or the United States. The startup sector in Tbilisi thus shows promise. Four steps can accelerate its development. First, Georgia needs to educate and attract more programmers and entrepreneurs. Second, targeted initiatives could set incentives for startups to develop solutions for local challenges, especially to counteract the disadvantage of having a market of limited size in Georgia. Third, startups in Tbilisi need more private sector funding, including angel networks to provide funding for growth. Fourth, Georgia needs to develop more of a startup cluster in Tbilisi, to connect entrepreneurs with investors, with service providers, and with each other. Medium-term, the startup sector has good prospects. Entrepreneurs value attractive locations, and Georgia has a fairly attractive business environment, too.
