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Journal number 1 ∘ Revaz Javakhishvili Levan Jangulashvili
Swedish Experience of Small and Medium Business Support

Expanded Summary

The Swedish government has a deep understanding of the role of small and medium enterprises in the development of the country's economy, in recent years, the organizational, financial-taxation, information provision, scientific-technical cooperation, and the improvement of the labor market organization events had taken place.

Small and medium enterprises are supported in Sweden within the framework of Common Industrial Regional and Innovative Policies, which focus on such enterprises. The Ministry of Industry, Employment and Communications, Swedish Agency for Entrepreneurship Development, Swedish Institute of Innovative Systems and Swedish Institute for Economic Growth Policy are responsible for it organizationally.

There is a systematic improvement of legislative-normative basis for small and medium business development in Sweden. In 1998, the law was adopted that prohibits carrying out any economic development activities by central and local authorities that do not take into account the interests of SMEs. In addition, a special group was set up to monitor the implementation of this legislative requirement and in this regard, the report is submitted to the Swedish Parliament each year. The Swedish Foundation for Small Entrepreneurship Study organizes annual "Small Business" Day, where the current problems of small and medium business development are discussed, and the outcome and recommendations of these will be taken into account when making decisions on these issues.

For small enterprises, as well as for a new company, a simple procedure of registration is established in the country. The permit will be issued for a month, all expenditures for all formalities are defined as 1% of the GDP per capita per population, and for limited liability companies it is expensive (100,000 krone). All registration procedures are performed through one window. Where the enterprise is placed on tax registration and passes the state registration.

Successful programs in Sweden are focused on entrepreneurship support for target groups: youth, women entrepreneurs, unemployed, immigrants and others. The program for students from the age of 6 to 11 provides support for the development of creative thinking, initiative innovative skills, persuasive self-reliance, and independent decision-making skills on vitally acute problems. In the realization of programs, together with students, parents and entrepreneurs are involved in the school schedules. One day in a week is allocated for the performance of these programs.

In addition, there are various programs for supporting entrepreneurial activities for young people aged 10 to 20, the program "Youth Achievements" is being offered to young people every year to help them start their new activities. The aim of the program is to organize workshops in order to support the initiative of entrepreneurial activities (including women), where training and experience are shared. For the same purpose since 2000, a special program "Start of Business" operates in the country.

Preferential conditions are created for the business in Swedish universities, where students are working on the position of managers. Their financing is mostly through local resources. Many universities have specialized courses of entrepreneurial activity, and the University of Jonkhee operates a consultation program for those who want to organize small and medium enterprises. In the University of Omex, the innovation center of entrepreneurship was created for students.

In Sweden, special programs for supporting entrepreneurial activity for women, unemployed and immigrants are operating. Every year the country produces 34-37 thousand such enterprises, 30% of whom go to women, 20% for immigrants, 20% for young people under 30 years, 20% for unemployed. Most of the enterprises are successful in the market and only 4% of them are solved (2.7). Fund "ALMI" helps women with entrepreneurship development, credit counseling and participation in various programs.

The Swedish government is well aware that subsidies given to unemployed for the purpose of entrepreneurial business are at the same time an important means of struggle against unemployment. One of the main conditions of its issuance is to develop a successful business plan. The ¼ of newly created enterprises in the country come from former unemployed. The size of the subsidy is related to the amount of money that could have been unemployed in the form of insurance for 6 to 12 months. This amount is enough for one employee to create an enterprise.

The Swedish Government helps the immigrants / indigenous population of 105 / to reduce the unemployment level / four times higher compared to the unemployment rate of indigenous population/. Besides, the business of immigrants is carried out mostly in the hardworking fields / trade, hotel and restaurant services/. Immigrants’ entrepreneurship is supported by the state with private sector. Their goal is to create a favorable climate of entrepreneurship, which is based on the organization of effective labor market, reduction in taxes, bureaucracy and venture funding. Tens of thousands of small enterprises are created annually in the country with a consistent implementation of small and medium business policies in the country, most of which maintain sustainability and continue to succeed.