Summary 

The central theme of the given work describes the development of small and medium business trends. It also contains aspects about small enterprise, which helps the economy of a country to develop.Additionally the text presents the establishment of small and middle business and its development in Georgia. The main reasons for the reduction of value in small and medium entrepreneurship are characterized as an economic-organization as well as institutional factors. In the process of economic development in Georgia, special importance is paid to small and medium entrepreneurship and aims at further improvement of the entrepreneurial environment that contributes to the growth and development of small and medium enterprises. From the institutional point of view, determination of low competitiveness of enterprises determines the taxation, regulation and protection of ownership rights on transaction costs. During the analysis of small and medium enterprises, the main stakeholders in business development are state, small and medium entrepreneurs, large businesses, municipalities, associations and others. Each of them will contribute to the development of small and medium business. Its involvement in networking values, assessing the elimination of obstacles to wards value increases and strengthening stability. Equally important is the association between Georgia and the EU, which is mentioned in the given text.