The Rural SMEs Development Project (RSMEDP), supports the development of a more effective ecosystem of business support services and access-to-finance opportunities for rural small and medium-sized enterprises (SMEs) and smallholder farmers (SHFs) in Georgia. Under Phase II (2025-2028), the project focuses on diversifying and digitalising business services, strengthening producer-buyer relationships, improving the design, targeting, and performance monitoring of state-funded financial support programmes, and exploring appropriate commercial financing models for rural enterprises. Since September 2025, RSMEDP has partnered with the Ministry of Agriculture of the Autonomous Republic of Ajara to strengthen its subsidised programmes supporting agricultural production, rural entrepreneurship, employment, innovation, and inclusive economic development.
The baseline study assessed the conditions of beneficiaries who received support through the Ministry’s subsidised programmes between 2023 and 2025, before the introduction of revised programme arrangements from 2026. It aimed to establish benchmark values for indicators related to employment, agricultural and business income, production, resilience, access to finance, adoption of improved business practices, market access, and the uptake of business support services. The study also examines programme participation and beneficiary profiles, coordination and implementation mechanisms, and inclusivity dimensions, with particular attention to women, young agricultural producers, geographically disadvantaged communities, and other Leave No One Behind groups. The study covers the five municipalities of Kobuleti, Khelvachauri, Keda, Shuakhevi, and Khulo in the Autonomous Republic of Ajara.
The mixed-methods study combined an extensive desk review with qualitative and quantitative primary data collection. The methodology includes semi-structured key informant interviews, focus group discussions with smallholder farmers, SMEs, and young agricultural producers; and a face-to-face survey of programme beneficiaries selected proportionally across the five target municipalities.