Business and Legislation

Rethinking the Barriers to Student Entrepreneurship in the Digital Age – influence of AI

Tue, 15 Jul 2025 00:00:00 +0000

This article explores the diverse obstacles that inhibit student engagement in entrepreneurial activities in the context of contemporary higher education and digital transformation. Drawing on recent studies and policy reports, it presents a revised framework for categorizing these barriers and proposes a more nuanced understanding of how institutional, cultural, and individual-level dynamics intersect to shape students' entrepreneurial intentions. The study offers practical recommendations for universities and policymakers to create enabling environments for entrepreneurial action.

Theoretical and Methodological Foundations of Foreign Investments

Lamara Qoqiauri — Mon, 14 Jul 2025 00:00:00 +0000

The article discusses the theoretical and methodological aspects of foreign investments and the cycle of work dedicated to investment.

We consider attracting foreign investment to Georgia as a necessary condition for the optimal formation of the investment market. It ensures the real integration of the Georgian economy into the world economy and is seen as an important and experienced means of overcoming the crisis situation in the economy, its structural transformation, and the transfer of production potential to a modern technological level;

The work „Theoretical and Methodological Foundations of Foreign Investment“ substantiates that foreign investments are today the main instrument for the supply of goods and services on international markets and one of the most important areas of international economic relations. They are increasingly influencing the scale, directions and structure of world economic relations;

The views of economists on foreign investment, the reasons for the rapid evolution of recognized forms, and the methodological principles of their research in the current context of globalization are analyzed.

Based on the above-mentioned point of view, an empirical study of the definition and economic content of foreign investment is presented, in particular, its definition is presented according to the concept of foreign investment in international law, the Seoul Convention, as well as the International Monetary Fund and the Law of Georgia on „Promotion and Guarantees of Investment Activities“;

Against the background of the integration processes of the world investment market and the globalization of the economy, the question of the necessity and possibilities of attracting foreign investments has been raised. At the same time, there is a growing opinion that not only the bold attraction of investments should be the starting point, but also the preservation of the wealth accumulated in the country and the protection of the national interests of the country when investing foreign investments; foreign investments should play the role of a catalyst for economic growth.

The article analyzes and explains the difficulties and misguided orientations in attracting foreign direct investment to the Georgian economy; it also puts forward recommendations for their elimination, stating that, first of all, it is necessary to develop and implement a correct national economic policy and strategy in this area.

The work discusses important forms of foreign investment, namely: first of all, this is the creation of new enterprises or the acquisition of existing enterprises; another, second form of capital investment is the acquisition of enterprises by processing local raw materials, so that the foreign market is supplied with products obtained as a result of the processing of this raw material; the third form - in those countries where equipment is generally exported (military and civilian), the creation of logistics and service systems for this equipment, which is a necessary condition for maintaining this sustainable market; the fourth form is the purchase of part or all of these assets in countries importing Georgian energy resources. Such investment of Georgian capital abroad simplifies, weakens dependence on transit countries of energy carriers and increases the reliability of energy supply to foreign partners; the fifth form is the construction of industrial facilities in some countries on commercial grounds; Finally, the sixth form is the participation of capital in the implementation of various programs abroad with foreign partners, which is characteristic of some industries.

Some issues of improving the tax-budgetary system

Besarion Nakopia — Mon, 14 Jul 2025 00:00:00 +0000

Among the financial methods of influence on modern state economic especially are spread budgetary and tax methods. The modern state, by increasing the volume of state capital investments, contributes to increasing demand, increasing the volume of industrial production, expanding investments, revitalizing the economy, and financing infrastructure. It assists private companies to reduce production expenses, accelerate capital turn process and raising of their profit. By allocating appropriations on the military targets, it places state demands on military technique and weaponry, industrial materials, equipment, raw materials, reduces numbers of unemployment, accelerates temps of economical raising. However, the impact of military spending on the country's economy is extremely contradictory. Social programs are financed from the state budget.

Tax forecast means to stablish the volume in state or local or in consolidate budget for some period, which payment is probable from the exact tax payer. Hence, tax forecast has two aspects: on the one hand, from the positions of state and local self-governing authorities it determines volume f the budgetary tax incomes, but, on the other hand, it determines the potential capabilities of taxpayers and the amount of taxes they must pay into the budget.

With constant raising of state expenses, with assisting of macroeconomic political leverage-payments and state expenses, it tries to stabilize state economics. With a lower level of inflation, it is closer to a state of full employment. With constant raising of state expenses, in raising of the whole share internal products, it is doubtful that there is solid base of reducing of state interruption in modern society economic and social life.

Accounting information as an active tool for stimulating business

Desdemona Maghlakelidze, Natela Vashakidze, Diana Uglava — Tue, 15 Jul 2025 00:00:00 +0000

In the context of business globalization, one of the important factors for the world's economic development and poverty alleviation is the free movement of capital between countries. The process is achievable only through a well-informed business market. The main goal of accounting and reporting is precisely to create an information base on the development of international economic relations and the possibilities of rational use of financial resources. The role of financial reporting in the information system is particularly large. It is a picture of the financial activities of the enterprise, the correct perception of which is helped by management reporting.

The paper discusses accounting information as an active tool for stimulating business. It has acquired such importance after the Georgian government signed the Georgia-EU Association Agreement, which created an obligation to comply with European standards for accounting, reporting and auditing. Increasing the transparency of financial and governance reporting of businesses in Georgia creates a reliable information resource that, on the one hand, will contribute to increasing the efficiency of business management of enterprises and, on the other hand, to the development of the capital market in the country, access to financial resources and, ultimately, economic growth.

Creative Strategies as an Effective Means of Gaining Hotel Competitiveness

Eliso Gvelesiani — Tue, 15 Jul 2025 00:00:00 +0000

Given article discusses the issue of importance of developing creative strategies and their implementing in the consumer market in order to increase the competitiveness of the hotels; To improve service quality, the importance of implementing highly effective human resource practices is emphasized; The necessity of the links between creative strategies and highly effective human resource management is substantiated.

Based on the research results, the assessment of the attitude of hotel service users towards creative strategies, cultural elements and, in general, the unique experience received is analyzed. Recommendations for managers wishing to develop a creative service are issued.

Pursuant to the research results, hotel managers who want to create a creative service can direct investments towards developing the performance skills of their employees. This will facilitate implementation of highly effective human resource practices, which have an impact on the operational efficiency of the hotel, including service quality, innovation, financial performance, and competitive advantages.

Character as a set of human traits

Ekaterine Sulukhia — Tue, 15 Jul 2025 00:00:00 +0000

Charaqter is one of the determining factors of human behavior,which, in turn, undergoes certain

changes under the influence of society; under the influence of external factors,some character Straits are strengthened some are weakend, and some are remain unchanged.

Along with the development of psychology as an independent science, the concept of character

was also taking shape. No single common approach to this problem has been developed,various groups of reaserchers have discussed the nature, characteristics, and factors that determine character development.

Character is a set of specific mental characteristics of a person that determine their behavior in certain life circumstances. A person's stock of experience, which is formed by individual-typological characteristics and is manifested in behavioral characteristics and relationships with the environment.

Character is the integration of a person's mental characteristics that are acceptable to a person. In its structure, two groups are distinguished: The first includes signs that provide direction to the personality (needs, moods, motivations, interests, ideals, goals). The direction of the personality is the needs and motives of human behavior. All of these constitute the basic resources. Without all of these, a person's character cannot be formed. The relationship between a person and a subject is revealed in the relationship between them. Human relationships are multifaceted: relationships with the world, society, each other, work and its results.

The second group includes intellectual, willful, and emotional character traits. Intellectual character traits are of paramount importance in modern military activities.High development of cognitive interests and mental abilities, intelligence and A creative approach to complex intellectual issues determines a person's relationship with reality and professional life (independence, criticality, faith, decision-making, etc.). A character trait such as indecisiveness may be caused by a lack of knowledge of military affairs, his weak intellectual preparation in difficult situations.

Volitional qualities determine a person's willingness to consciously regulate their behavior, which is associated with overcoming difficulties and obstacles, and to direct behavior towards certain principles and tasks.

Retrospective and Current Realities of Fuel Industry Development in Abkhazia

Nazi Gvaramia — Tue, 15 Jul 2025 00:00:00 +0000

The paper will address the development of regionalization processes in Georgia, which is a logical result of the events of the last decades.

The study presents the characteristics of the regional economy, specific problems and directions of development of the energy sector of a particular region. The share of a particular region in the country's energy sector is determined by the number and scale of its enterprises in a given field.

The study discusses the period from the 1990s, following the restoration of Georgia's state sovereignty and the collapse of the Soviet Union, which is related to the transition to market economic relations and the creation of a new international relations environment for the country;

The paper emphasizes those regional problems that exist in modern conditions and that have not been thoroughly studied.

The establishment of market relations in Georgia and major economic changes coincided with political unrest in the Autonomous Republic of Abkhazia, as a result of which in 1993 the region was declared an independent republic by local separatists from Georgia and to this day they arbitrarily consider it to have passed from the jurisdiction of Georgia. Therefore, a real characterization and assessment of the current situation in the Autonomous Republic of Abkhazia, the main trends in the development of the region's economy, especially energy, during this period, has not been made. The purpose of this work is to inform the public in this direction.

At the present stage, the economy of the Autonomous Republic of Abkhazia is experiencing a crisis. As a result of the destruction caused by the hostilities of 1992-1993 and the subsequent looting and robbery, all sectors of the region's economy and social sphere have suffered severe losses. A significant part of the assets was destroyed, and a large volume of machinery, equipment, and tools was almost completely out of order. Rolling stock of automobile, railway, aviation, and sea transport, industrial bases, railway stations and their equipment, and the Sukhumi airport were destroyed, looted, and lost. Agriculture, energy, communications, resort, and communal services, especially roads and bridges, suffered significant losses. Based on the above, the study presents the opinion that the primary prerequisite for the restoration and development of the economy of the Autonomous Republic of Abkhazia should be the restoration and development of the energy sector of the region, since the economy of Abkhazia as a whole and its individual sectors depend largely on the latter. According to the calculations presented by the Ministry of Economy of the Autonomous Republic of Abkhazia, which were conducted in the 90s and which were incomplete for the given period, as a result of the war, the material damage caused to the economy and social spheres alone exceeded 3.0 billion GEL, while the damage to the personal property of citizens (excluding housing stock) amounted to 5.5-6.0 billion GEL, i.e. a total of 8.5-9.0 billion GEL.

The study characterizes the potential of fuel resources of the Autonomous Republic of Abkhazia and provides a retrospective of the development of the fuel industry. The extremely great importance of the development of the remaining reserves of the Tkvarcheli coal deposit for the development of the energy economy not only of the autonomous republic, but also of Georgia as a whole is presented. At the present stage, the economy in the territory of Abkhazia functions with a negligible load. The development and use of energy potential in the region has been completely stopped over the past 30 years. Setting directions for the rational use of the region's energy potential is a very urgent problem, the solution of which is of great economic and political importance for Georgia. It will allow the economy of the autonomous republic to be launched, and with the full development and use of local energy resources, it is possible to satisfy Abkhazia's needs for electricity, as well as to supply it to other regions of Georgia and neighboring countries.

The paper aims to assess the current state of the energy sector in Abkhazia before and after the Georgian-Abkhazian conflict. An analysis of the initial state of the prospective development of the sector and the prospects for the restoration of the energy sector are provided. At the same time, the study takes into account the difficult political situation in the region, according to which, currently, the energy issue is the only legal area for conducting cooperation between Georgia and de facto Abkhazia. Therefore, within the framework of the study, a perspective vision of the development of the energy sector in the region is provided.

Modern Teaching Methods in Georgian Universities: Challenges and Prospects

Nona Ketsbaia, Nino Ketsbaia — Tue, 15 Jul 2025 00:00:00 +0000

The article is dedicated to Modern Teaching Methods Integration Georgian In universitiesand investigatesTheir influence Academic On the results,Students Motivation And Educational Process In general On quality. AThe article highlights the opportunities and challenges associated with interactive, student-centered, technology-based, and project-based teaching methods. It presents research on the ongoing transformations in Georgian universities caused by technological progress and socio-economic changes.

From a methodological point of view, this study is a theoretical-analytical work based on a systematic review of modern academic literature, comparative analysis and interpretation of contextual factors. The study uses a comparative analysis of international and local sources, which makes it possible to assess both the impact of global trends and the specifics of the Georgian educational space. The analysis of the results shows that modern pedagogical approaches, including student-centered learning, active learning strategies, project-based learning and the integration of digital technologies and artificial intelligence, are consistently taking their place in the Georgian higher education system. It is worth noting that the COVID-19 pandemic has given a significant impetus to the rapid development of distance and hybrid learning models, which has significantly accelerated the introduction of digital technologies and innovative teaching methods.

Despite positive trends, the study identified several problems that significantly limit the systematic and consistent implementation of modern teaching methods in Georgian universities. The study confirms that the problem of infrastructural resources remains acute, which is especially noticeable in the case of regional higher education institutions. In addition, the low competence of professors and teachers with digital technologies often prevents the effective implementation of innovative approaches. Another problem was identified - low motivation of some students and their attitude towards traditional, passive learning. PresentedRecommendations Educational Process For improvement: Teachers Professional Development, infrastructure Basics Strengthening,Students Engagement Ascension And International Cooperation Expansion.The above Research ImportantThere is a possibilityEducation QualityAscensionAnd Universities Modern Challenges Adequate For perception.

Artificial Intelligence: Development, Challenges and Prospects in Georgia

Nino Ketsbaia, Nina Kopianidi — Tue, 15 Jul 2025 00:00:00 +0000

This paper „Artificial Intelligence: Development, Challenges, and Perspectives in Georgia”provides a comprehensive discussion of the history of artificial intelligence (AI), exploring its classification, functional characteristics, and various opportunities and challenges that significantly influence its development. It delves into the legal, ethical, and regulatory issues surrounding AI with a particular focus on both international and local legal frameworks. The analysis includes the legal status of artificial intelligence, various models of tort liability, and critical data-protection issues. Special attention is given to the recommendations of the European Parliament and European Commission regarding legal standards for cyber-physical systems and autonomous intelligent robots, which are essential for guiding the responsible development of AI technologies.

In the context of Georgia, this study examines the current state of AI development within the country, highlighting its achievements in the public sector while also identifying significant challenges that hinder further progress. Key obstacles include the need for enhanced technological infrastructure, improvement of the legislative framework governing AI, and necessity for a skilled workforce capable of navigating this rapidly evolving field. To address these challenges, this study presents a series of recommendations aimed at formulating a robust national AI strategy and strengthening the legal framework. These recommendations encompass the creation of specialized working groups, establishment of research and technology centers, and promotion of deeper international cooperation to foster innovation.

Ultimately, this study emphasizes that artificial intelligence has the potential to transform Georgia into a leading driver of innovation and economic growth. Achieving this vision will require coordinated efforts among government entities, academic institutions, and the private sector alongside the mobilization of targeted investments. This strategic approach is crucial to enhance a country's competitiveness and secure a prominent position in the modern technological landscape. By fostering collaboration and innovation, Georgia can harness the transformative power of AI to drive sustainable development and economic prosperity, thus positioning itself as a key player in the global AI arena.

Economic problems of the modern capitalist system

Naskhida Darbuashvili, David Bukia — Tue, 15 Jul 2025 00:00:00 +0000

For centuries, economic scientists, experts, and politicians have been trying to figure out what causes economic problems, looking for ways to eliminate these problems, but to no avail, and the problems remain problems. In fact, the world is in a constant economic crisis. For some reason, humanity calls the peak or extremely aggravated state of economic crises an “economic crisis.” Millions are spent on organizing various economic forums, trillions on overcoming economic crises, but in vain. The measures taken only help to temporarily alleviate the situation, and not to solve the problem once and for all.

It is well known to everyone that the economy is the main basis for the existence of humanity. If the economy is in a prolonged crisis, everything collapses and collapses, even states. The economy creates an environment for development and makes it possible to satisfy human needs.

The presented work discusses the modern problems of the capitalist social order and the free market economy. It is necessary that politicians - when planning political processes and governing the state; economists - to manage economic processes; businessmen - to properly plan and manage their own business activities; managers of all spheres - to properly conduct management, etc. Serious economic problems are caused precisely by the non-reactionary environment, gross errors made in economic theories and economic formulas, and political and social systems created on their basis.

Assessment of Bankruptcy Risk in the Construction Sector Enterprises of Georgia

Nino Tsivtsivadze — Tue, 15 Jul 2025 00:00:00 +0000

This research examines the financial stability of companies operating in Georgia’s construction sector by applying three prominent bankruptcy prediction models: Altman’s Z-score, Springate, and Zmijewski. The study analyzed the financial data of 12 construction firms over the period 2020–2022 to assess their risk of insolvency.

The results reveal that most of the examined companies fall into high or moderate risk zones, indicating financial instability across the sector. While each model uses different financial ratios, there is a partial alignment among the outcomes, reinforcing the validity of the findings. Zmijewski’s model tends to identify higher distress levels, while Altman’s is comparatively more optimistic.

A critical limitation of the study is the lack of accessible and standardized financial data in Georgia, which restricts the models’ applicability and the research scope. Furthermore, these models are based on foreign economic contexts and require adaptation to reflect the specific conditions of Georgia’s construction industry.

The research highlights the urgent need for improved data transparency, local model development, and strategic policy interventions to support the long-term sustainability of the construction sector.

How Tourism Business Can Measure and Maximize Digital Impact

Beka Skhirtladze — Tue, 15 Jul 2025 00:00:00 +0000

In the evolving digital environment, social media has emerged as a pivotal component of marketing strategies within the tourism industry. Despite its growing adoption, the measurement of social media effectiveness presents ongoing challenges for tourism businesses. This paper critically examines the strategic role of social media platforms - including social networks, microblogs, multimedia-sharing sites, and user-generated review systems - in enhancing visibility, consumer engagement, and brand positioning. Emphasis is placed on the necessity of aligning social media initiatives with clearly defined business objectives and utilizing both qualitative and quantitative metrics to assess performance. The study explores established frameworks, such as Paine’s seven-step model and Etlinger’s Social Media Measurement Compass, which offer structured methodologies for evaluating impact and return on investment (ROI). The paper concludes that a comprehensive, data-informed approach to social media measurement not only justifies investment but also enables continuous optimization of marketing efforts, thereby contributing to sustained competitiveness in the tourism sector.

Tourism as a powerful and dynamic industry of the world economy

Iuri Papaskua — Tue, 15 Jul 2025 00:00:00 +0000

In May 2025, the Georgian National Academy of Sciences heard the presentation of tourism specialist, researcher in this field and well-known scientist Nodar Grdzelishvili on the monograph “Tourismology: Science about Tourism”. The participants in the discussion expressed interest, noted the scientific and practical merits of the publication. The book was published by the decision of the Publishing and Editorial Board of the Georgian National Academy of Sciences, in the printing house of the same Academy, p. 228. Editor-in-Chief - Academician Roin Metreveli.

EU Projects at Sokhumi State University

Larisa Takalandze — Tue, 15 Jul 2025 00:00:00 +0000

On May 19, 2025, a meeting of students with successful Entrepreneur and General Director of „Acto Group“ (https://acto.ge) Giorgi Ezugbaia and Corporate Social Responsibility Manager of Tegeta Holdingis, CSR Expert, Mariam Japaridze (www.tegeta.ge) were held at Sokhumi State University.

Attention magazine readers and potential authors!

Iuri Papaskua — Tue, 15 Jul 2025 00:00:00 +0000

We think it will be interesting for you to inform you that the journal “Business and Legislation” has been published with international scientific-analytical status since December 2020 and is indexed in the international search database Google Scholar, ERIXPLUS, as well as in several other databases (see the main page of the site at ojs.b-k.ge).
For years, the journal has been a reliable partner for business circles, an experienced guide in the field of business, a sincere guide in the labyrinths of legislative acts, and a selfless servant for the academic sphere, and will continue this tradition.