Cooperative development in Georgia, opportunities and challenges

Abstract

Cooperative development in Georgia is an important key process that contributes to the stability of the country's economy and the development of farmers. Cooperatives, as organizations established based on cooperation, create a variety of opportunities, which is especially important for supporting small and medium-sized enterprises. Cooperatives, as a collective entrepreneurial model, provide more efficient mechanisms for the production and sale of products, which contributes to the effective use of local resources and the economic development of the population. The aim of the article is to share with the reader the importance of cooperatives in the process of economic development of the country, including in the field of agriculture and local businesses, as well as to analyze the role of cooperatives, the existing opportunities and challenges faced by this model in Georgia, their impact on the socio-economic development of the country, as well as the essential importance of state support policy. The Georgian agricultural sector, in the process of transformation, is full of challenges, however, cooperatives allow the rural population not only to improve the quality of their own products, but also, to cooperate and develop specific sectors based on common interests and needs. Through cooperatives, entrepreneurs and farmers unite under a single product, which allows them to produce a more competitive product in the market, which is of course also reflected in prices. The article will also discuss international experience in terms of the development of cooperatives, as well as successful models of various countries that can be used for Georgia. For example, in European countries, cooperatives play an important role in the process of rural development.