LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

Different factors influence the city competitiveness. The most important ones are listed
below:
• Demographic structure.
• Skilled workforce.
• Quality of life.
• Social diversity.
• City recognition.
• City recognition and reputation.
• Costs of doing business.
• Economic structure.
• Financing.
• Networking.
• Research and development.
• Institutional infrastructure.
• Legal regulations and policies.
• Transport and telecommunication accessibility.
• Technical infrastructure.
Demographic structure - when planning long-term involvement in economic
development the demographic trends such as migration rate, income distribution or age
structure cannot be omitted since they influence the availability of workforce, the
consumers’ buying potential and local business environment.
Skilled workforce -intellectual capital, ingenuity, creativity and technical capabilities of
the labor force are key drivers of economic growth nowadays. This is why the availability
of qualified workforce is a crucial factor when analyzing city competitiveness.
Quality of life - to attract and retain top specialists needed for the city’s economy to
develop, a region needs to provide them with satisfying conditions of living. Safe and
healthy physical environment, diversified opportunities for leisure, rich urban culture,
chances of professional and personal growth are among the main factors influencing
individuals’ decisions regarding their choice of a place of stay.
Social diversity - wealth and poverty distribution, social exclusion phenomena,
community’s social capital are important factors to be taken into consideration when
choosing industries to focus on.
City recognition - being easily recognized in a region and worldwide as a city with
certain industries developed can facilitate the process of attracting international
investments, gaining business partners and entering new markets.
Economic structure - among the key factors influencing the likeliness of business to
succeed are its economic surroundings. This factor includes industrial profile of the region,
developed economy sectors, the quality and extent of supply chains, the competitiveness
of local companies, etc.
Costs of doing business - costs related to companies’ activities are often decisive
when choosing a region for opening a new branch or founding a new company. These
include state and municipal tax levels, land and resources prices, office rents, wages and
so on.
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