When the Rural SMEs Development Project (RSMEDP) began in 2021, most rural small and medium-sized enterprises (SMEs) in Georgia faced similar challenges, limited financial literacy, transactional relationships with service providers, and scarce access to finance.
Their accountants mostly focused on basic tax compliance or paperwork for grant applications. Few entrepreneurs knew how to plan strategically, analyze trends, or use financial data to make decisions.
Swisscontact, together with Mercy Corps and The Springfield Centre, saw an opportunity to change this, not through temporary assistance, but by building a system that lasts. Working closely with government agencies, business associations, and regional service providers, the project strengthened Georgia’s market ecosystem to better serve rural SMEs.
Through the Market Systems Development (MSD) approach, the project helped advisory service providers (ASPs), accountants, and sectoral associations evolve from reactive support roles into proactive partners for business growth.
New financial advisory services were introduced across regions, helping SMEs learn how to prepare realistic budgets, analyze profit and loss, manage cash flow, and set competitive prices.
By the end of the first phase, 2,133 SMEs had accessed financial services and adopted seven key financial practices.
Businesses that used these services recorded 8% higher income than those that didn’t, tangible proof that better financial management pays off.
Beyond financial literacy, the project supported SMEs to invest in modern machinery and technology.
Through facilitation and collaboration with the Enterprise Georgia and Rural Development Agency, more than 1,200 SMEs secured grants and loans, investing CHF 7 million in new technology. These investments generated CHF 4.7 million in additional income and improved working conditions for over 1,000 employees.
For example, Joni Nachkebia, a tea producer from Guria, used project-supported counseling to secure a state grant and co-finance a modern tea processing machine.
Today, his business employs 20 local women and sells “Gurulebi” tea to supermarkets and hotels, a story of partnership turned into prosperity.
Swisscontact and its partners integrated Gender Equality and Social Inclusion (GESI) as a cross-cutting priority.
Through targeted communication in minority languages, tailored training, and direct support, the project helped 548 women- and minority-led SMEs increase income, reduce costs, or build resilience.
Women’s independent loan decision-making grew from 3.4% to 16.5%, and female land ownership doubled to 40.2%.
This systemic inclusion ensured that economic growth in Georgia’s rural regions benefits everyone, not just a few.
The project’s success lies in collaboration, between Swisscontact and its consortium partners, between state agencies and local associations, and between financial experts and rural entrepreneurs.
By building shared ownership, the project has created sustainable structures that will continue supporting SMEs long after the program’s end.
As the first phase closes, one message stands out clearly: strong partnerships build strong systems.
And when systems work, businesses thrive, communities grow, and the benefits multiply across generations.
Rural SME Development is a Swiss Agency for Development and Cooperation project, implemented by Swisscontact in consortium with Mercy Corps and The Springfield Centre.