This research by CARE Caucasus, supported by the German Government and UNDP, examines the tangible economic and social impacts of targeted support for small and medium-sized enterprises (SMEs) launched by refugees, mostly from Ukraine, in Georgia since 2022.

The study covers 32 active SMEs supported through the 'Improving the Rule of Law and Access to Justice for All’ project. Findings are drawn from both quantitative and qualitative data collected by the project team, together with an independent consultant.

Key Findings

Strong Economic Performance: Over an average period of 16 months, the 32 active businesses generated GEL 8.4 million in income and GEL 2 million in profit, achieving an average profit margin of 50%.

High Return on Investment: With a total grant investment of GEL 370,814, these enterprises delivered a remarkable return on investment of 552%, underlining the value of targeted, well-managed support.

Contribution to the Georgian Economy: The SMEs are projected to contribute around GEL 73,000 in annual tax payments, demonstrating refugees’ potential as active economic agents rather than passive recipients of aid.

Inclusive Reach:

The project has reached a diverse group of beneficiaries:

• 23 of the entrepreneurs are women, highlighting strong female leadership.
• The average age of business owners is 40, reflecting both experience and adaptability.
• SMEs are spread across regions, including Tbilisi (9), Batumi (11), Kutaisi (5), and seven others in smaller municipalities.

Sectoral Diversity:

The supported SMEs cover a wide range of sectors, underscoring the entrepreneurial energy and diverse skills of refugees:

• Crafts (9)
• Confectionery (8)
• Cafés and restaurants (6)
• Spa and beauty services (3)
• Other services (2)
• Agriculture (1)
• Other business types (3)

Beyond Numbers

Tailored business training, language courses, and mentorship have strengthened resilience, trust, and a sense of belonging within refugee communities. The initiative demonstrates how targeted economic support transforms emergency aid into long-term opportunity and self-reliance.

The Way Forward

Expanding and adapting this approach holds real promise: creating decent jobs, reducing inequalities, and driving inclusive and sustainable growth in Georgia, while enabling refugees to rebuild their lives with dignity and purpose.