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Modern Trends in Small Business Development in Developed Countries

Resume

The paper covers the issues of small business development trends in the world’s  developed countries. The paper deals with the importance, ability and nature of small businesses.  The innovative nature of small business and its high efficiency in innovations conditioned the fact that the developed countries of the European Union and the world as well as the state and private (large enterprises) sector today pay the special attention to the support of innovative small businesses.

Small, medium and large business symbiosis - "cluster" and its three species is studied. One of the driving forces of innovative small business today in developed countries are "Clusters". "Clusters" make more innovations in a certain period of time in economics than small enterprises operating independently.

"Cluster" - are economically closely related and linked firms that are closely located to each other, thus promoting each other's development and competitiveness. These are mostly informal associations of major leader firms with many medium and many small enterprises that create technologies, connecting market institutions and consumers, together within the frames of creating a single chain of value. They are concentrated on a specific area and carry out joint activities of the production and delivery of certain types of products and services

        The three types of clusters are distinguished in world practice:

        The first type, in the form of regional restrictions, "cluster" - is the economic activity among the related sectors within the region. They are usually "tied" to some scientific institutions (universities and others).

       The second type of "cluster" - is the vertical production connections operating in a narrow field of activity, created by the headwork or the main enterprise network that includes the production, supply and sales processes.

        The third type is the classical "cluster" (eg "chemical cluster") or higher level aggregation (for example, "aerospace cluster") with high levels of aggregation in different species of production.

       The paper also discusses the different stages of cluster formation, according to the level of links between firms, their conditional classification on the example of different countries.  The statistical materials reflecting the current state of innovation and small business development in Georgia and the developed countries (USA, EU, Japan and others) are also given in the article.

In developed countries today, one of the driving force of innovative small business is recognized as "clusters", which in a certain period of time reinforce more innovations in the economy than small independent enterprises. We think it is expedient that "Cluster-Symbiosis" - this world experience of development of small, medium and large businesses, will be introduced in the Georgian economy. Introduction of "Cluster" should first of all be in the tourism industry, in the agricultural sector. Investment in the world of innovative business development and implementation in Georgia will contribute to the development of small, medium and large businesses as well as the country's competitiveness.

     The introduction of an effective mechanism for "cluster" national innovation system and innovative small business state support in the country's economy should become the main action plan of the Government of Georgia,  as it is evident from the world experience, it is a high level of competitiveness, innovation, unemployment reduction and economic growth of the country's economy.