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<img src="/uploads/what_is_working_capital_1f73283076.webp" alt="what is working capital">If you’ve ever wondered how some businesses always seem to stay strong, no matter what, the secret is simpler than you think: working capital, which isn’t just about making sales or reducing costs, but about having enough financial resources to make sure that the business keeps moving forward.A company with sufficient working capital can pay its bills on time, invest in growth, and handle unexpected expenses without stress. On the other hand, poor working capital management can lead to cash flow problems, delayed payment,s and even more serious financial trouble.In this blog, we’ll explain&nbsp;<a href="https://wesavvy.co.uk/services/financial-management">working capital&nbsp;</a>meaning, how to calculate it and why managing it well is key to a company’s financial growth. But before we go further into why it is essential for success, let’s first understand what is working capital and why it’s so important for business leaders.<h2 style="text-align:justify;">Clarifying the working capital definition</h2>Understanding working capital meaning is essential for any executive who is focused on financial stability. While sales and profit are important, without enough working capital, a company may have trouble covering everyday costs, which can cause more and more problems.&nbsp;In the business world, working capital is a key number that shows how strong a business’s finances are. It’s the difference between what a company owns (like cash, money from customers and products) and what it owes (like bills and short-term loans). It also tells you, if a company can pay its bills and keep everything running without problems, at the same time.&nbsp;This is why business leaders pay close attention to working capital. They understand that managing it well opens the door to new opportunities. With effective management, companies can grow and reduce financial risks.However, while working capital is essential for daily operations, there are other financial tools that are also important for bigger projects and long-term growth.<h2 style="text-align:justify;">Working capital vs. other financial tools</h2>Besides working capital, which focuses on a company's daily operations and shows how well a business can cover its short-term expenses, there are other financial tools. With them, loans, debt and equity are typically used to fund larger projects. To put it simply, while working capital helps cover everyday costs, loans and debt provide the money that is needed for improvements. However, equity allows a business to raise funds without borrowing.For businesses, especially those that are in development phases, understanding the balance between working capital and these long-term financial instruments is even more important. For this reason, sometimes businesses invest in consulting firms to ensure they manage financial tools effectively. These firms help companies make the right decisions regarding their working capital, loans, debt and equity.&nbsp;<h2 style="text-align:justify;">How to calculate working capital: what you need to know</h2><h3 style="text-align:center;">Working Capital = Current Assets – Current Liabilities</h3>It’s rare to find a business owner or company that doesn’t know the meaning of this formula, which provides a clear picture of a company’s financial status. Understanding how to calculate working capital is essential, but what really matters is knowing the quality of your assets and liabilities. Some assets are not easy to sell quickly for cash, and some bills may need to be paid sooner than you thought. It’s important to know how fast you can get your money, when you need to pay your bills, and how different seasons can affect your cash flow.It is also worth mentioning that working capital management is not just about calculations; it's about making smart choices to keep a business stable and running well for a long time. For top management, having enough working capital is key to staying financially flexible.&nbsp;For this reason, consulting firms like&nbsp;‘’<a href="https://wesavvy.co.uk/">SavvY</a>” can help review and improve strategies to make sure they match your business goals.<h2 style="text-align:justify;">From numbers to strategy, managing working capital effectively</h2>The formula we mentioned earlier is just the beginning. After calculating working capital, the next step is to use that information practically, which is key to running your business effectively. You need to apply this data to make strategic decisions. It’s often said that effective working capital management is about balancing short-term needs with long-term goals to ensure that resources are used correctly.Once you understand your working capital, it can help you make better decisions. By checking it regularly, you can keep your business balanced between having enough cash and growing. For example, if your working capital is high, you might want to invest in new opportunities or grow your business. If it’s low, you may need to reduce unnecessary costs. The key is to stay flexible and be ready for changes in the market.<h2 style="text-align:justify;">Why positive and negative working capital matter</h2>After calculating and using your working capital effectively, the next important factor is understanding whether it’s positive or negative, because it significantly affects how your business works.Positive working capital means you have enough assets to pay your short-term debts and it shows that your business is financially stable. This helps you pay bills on time and take advantage of new opportunities. On the other hand, negative working capital means your debts are higher than your assets, which can make it hard to pay bills and run your business without problems. This situation needs careful attention to avoid cash flow problems. When you know if your working capital is positive or negative, you can make smarter decisions.<h2 style="text-align:justify;">“SavvY” -&nbsp;Your partner in improving working capital management</h2>In conclusion, managing working capital well is important for businesses to run effectively, but as we've seen, it’s not just about understanding the numbers; it’s about making good decisions based on that information. Since working capital and other financial tools are so important, many companies choose to get help from experts.Here’s where&nbsp;“SavvY” can make a difference for your company. This business consulting firm, based in Tbilisi, Georgia, uses a simple and effective approach to help businesses manage their working capital and improve their financial strategies. With good knowledge of the local market and global best practices,&nbsp;“SavvY” helps businesses turn challenges into opportunities.&nbsp;

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What is Working Capital? Understanding Its Importance and Role in Business Success

News

<figure class="image"><img src="/uploads/Screenshot_2025_04_01_164544_d3b33a61ac.png" alt="Free Industrial Zones – Time to Invest with Mariam Koyava"></figure>There is a belief that, amid high uncertainty and increasing unpredictability in the global economy, special economic zones provide a relatively predictable stable business environment.The World Free Zones Organization (WFZO) estimates that there are 7,000 special economic zones worldwide. However, tracking and identifying which zones are truly active and successful remains a challenge.&nbsp;According to Adrianople Group, there are 4,921 active zones in more than 90 countries.As for Georgia, the country currently has four operational free industrial zones: Poti Free Industrial Zone, Kutaisi Free Industrial Zone, Hualing Kutaisi Free Industrial Zone, and Tbilisi Free Zone.Additionally, two new zones are in development. The Sagarejo Free Industrial Zone is scheduled to begin operations no later than March 1, 2026, while the GIG Free Industrial Zone in Kutaisi is set to open by December 1, 2026.<a href="https://bm.ge/news/tavisufali-industriuli-zonebi-investitsiis-droa-mariam-qoiavastan-ertad">To watch the full interview, follow the link</a>

Free Industrial Zones – Time to Invest with Mariam Koyava

<figure class="image"><img src="/uploads/giorgi_gudabandze_w_h_598e10ae06.jpeg" alt="giorgi-gudabandze_w_h.jpeg"></figure>"The low share of the EU in exports is alarming," said Giorgi Gudabandze, Associate Partner at SavvY, in an interview with BMG.Exports from Georgia to the European Union have dropped to record lows. In the first ten months of 2014, Georgian businesses exported only $456 million worth of goods to EU countries. The EU’s share in Georgia’s total exports fell below 10%, reaching just 8.4%."The country and the private sector are not prepared for a market with high-level requirements. Moreover, Georgia’s recognition as a supplier of specific products in the EU market is quite low, which results in a lack of trust from European buyers in long-term business relationships. Logistics also remains a major issue, limiting Georgia’s competitiveness. We are not fully utilizing our geographical advantages, and as an overall result, our export share remains low," said Giorgi Gudabandze.&nbsp;<a href="https://bm.ge/news/eqsportshi-evrokavshiris-dabali-tsili-sagangashoa-giorgi-gudabandze">To read the full interview, follow the link</a>

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Low Share of EU in Exports is Alarming – Giorgi Gudabandze

<figure class="image"><img src="/uploads/Screenshot_2025_04_01_162636_2de06da5a4.png" alt="fmcg market overview"></figure>In Georgia, consumers spend approximately one-third of their disposable income on food and non-alcoholic beverages. This figure has been steadily increasing over the past five years, rising from 30.09% in 2017 to 33.39% in 2023.According to statistics, the sector's turnover in 2023 reached 20.4 billion GEL, with a CAGR of 17.8% between 2019 and 2023. Additionally, TBC Capital's calculations indicate that the share of the organized market is growing in Georgia as well, increasing from 17% in 2016 to 36% in 2023. Their forecast suggests that by 2025, the organized market share will reach 45%.According to TBC Capital's FMCG sector overview, Nikora is the market leader in sales volume, followed by Ori Nabiji, Carrefour, and Spar.The FMCG market is represented by several large players and is characterized by intense competition. However, in recent years, no significant shifts have occurred in market distribution. In 2024, however, several major market players merged, including Daily, Magniti, Spar, Gvirila, and Ioli, forming a single group. There are expectations—and BMG has insights—that market consolidation will continue.According to the Georgian Competition and Consumer Agency (GCCA), in 2023, nearly 12,000 companies operated in the FMCG retail sector nationwide. One-third of the market is concentrated in Tbilisi, where competition is particularly fierce. However, the share of the organized market remains relatively low in other regions of the country, indicating significant growth potential.&nbsp;<a href="https://bm.ge/news/fmcg-bazris-mimokhilva-saqartvelo-investitsiis-droa-mariam-qoiavastan-ertad">To watch the full interview, follow the link</a>

fmcg market overview

FMCG Market Overview (Georgia) / " Time to Invest" with Mariam Koyava!

Press Releases

<figure class="image"><img src="/uploads/savvy_w_h_3f6be5290a.jpeg" alt="savvy_w_h.jpeg"></figure>A $35 million investment portfolio, three large-scale development projects in Georgia, and over 30 evaluated investment proposals—all of this is the result of a three-year partnership between the business consulting company SavvY and Sodi Investment.&nbsp;The strategic collaboration between SavvY and Sodi began in 2021, supporting the development of Georgia’s real estate market and other key sectors through foreign direct investment.&nbsp;As a consulting firm, SavvY's role is to assess potential investment proposals and monitor the efficiency of the existing investment portfolio. According to the company's managing partner, Mariam Koyava, SavvY evaluates whether an investment business idea aligns with Sodi Investment’s investment mandate and the vision of its founder, Dominique Romano.&nbsp;"We started our strategic collaboration with Sodi in 2021, which involves financial management and investment advisory services. Given the large scale and complexity of the company's projects, we work closely with the management team to assess the financial viability of each project and ensure effective financial management and monitoring of executed investments.&nbsp;Over the past 3.5 years, we have evaluated over 30 investment projects, the majority of which were in the real estate sector, including residential and hotel-type accomodations. While Sodi Investment actively seeks interesting projects and niche investment opportunities, it is also open to potential partnership deals. We assess how attractive, profitable, and strategically aligned each project is with Sodi’s founder’s&nbsp;investment strategy,” says Mariam Koyava.&nbsp;Sodi Investment's portfolio includes large-scale projects, such as a high-end international brand hotel in Batumi. This will be an Accor-branded hotel located in the city's historic district, set to open in a test phase by the end of next year. Another key project is a mixed-use development on the former film studio site in Tbilisi, which will feature residential, hotel, and commercial spaces. The former film studio project is expected to be completed within three to four years.&nbsp;"Based on Sodi’s founder’s vision, restoring, preserving, and revitalizing historic projects is a priority. That is why our Batumi hotel project is centered around reconstructing a historic bank building while preserving its original facade. In addition to financial benefits, every Sodi project must offer advantages not only to investors but also to the local community and the country as a whole,” says Sodi Investment's director, Irakli Alasania.&nbsp;According to Sodi Investment, their partnership with SavvY provides deep sectoral expertise, which translates into tangible results. When asked whether outsourcing financial services is a viable approach, Irakli Alasania explains that working with a consulting firm has fully met their expectations.&nbsp;“For Sodi Investment, existance of companies like SavvY is crucial. SavvY possesses deep sectoral knowledge and experience that is constantly being updated. Flexibility and independence are also key factors, as an external advisor, SavvY is always motivated to remain as unbiased and objective as possible in evaluating investment opportunities.&nbsp;At Sodi Investment, we strive to keep up with market trends in developed countries and introduce innovations. When we considered partnering with SavvY, we made a positive decision, and we can say that the collaboration has been a success. Our expectations were met, and the results speak for themselves,” says Irakli Alasania.&nbsp;Sodi Investment emphasizes that working with a consulting firm ensures continuous service quality.&nbsp;At SavvY, they hope that their collaboration with the investment company will continue even after the completion of the current projects and looking ahead, both sides will work together to expand the investment portfolio. Discussing future cooperation, Sodi’s director highlights that a stable partnership is essential for rapid growth.&nbsp;"A stable partnership is crucial not only for risk management but also for fast growth. We expect that the collaboration and partnership we established with SavvY three years ago will continue into the future,” says Irakli Alasania.&nbsp;<a href="https://bm.ge/news/35-milioniani-sainvestitsio-portfeli-da-sami-masshtaburi-proeqti-savvy-da-sodi-investment-is-3-tsliani-partnioroba">To read the full interview, follow the link</a>

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A $35 million investment portfolio and three large-scale projects – a 3-year partnership between SavvY and Sodi Investment

<figure class="image"><img src="/uploads/Womens_narrative_Natia_Goliadze_0807a77b7f.png" alt="Womens narrative Natia Goliadze interview photo"></figure>SavvY’s Executive Director, Natia Goliadze, participated in the Women Narrative Program, where she discussed the company’s growth, key achievements, and future vision. As a boutique consulting firm specializing in finance, SavvY has been delivering practical and tailored solutions to businesses of all sizes for nearly eight years. The company operates both locally and internationally, collaborating with organizations to support the growth and development of Georgia’s business ecosystem. Natia highlighted SavvY’s commitment to helping businesses navigate complex challenges with innovative, value-driven approaches. During her presentation, she reflected on SavvY’s significant milestones, including expanding into international markets and successfully executing impactful projects in tourism and real estate. Notable achievements include partnerships with global organizations and the successful implementation of projects such as the Growth Hubs (consulting centers) initiative under the Enterprise Georgia. These accomplishments reflect SavvY’s dedication to driving positive change and supporting business growth. Looking ahead, SavvY is focused on further strengthening its presence in international markets and expanding its specialized services.&nbsp;&nbsp;<a href="https://youtu.be/ovxelHDboLs?si=eaIe4Hcuc-Vyp96D">To see the full interview in Georgian here click here</a>

Womens narrative Natia Goliadze interview photo

Womens narrative Natia Goliadze

SavvY’s Executive Director, Natia Goliadze, participated in the Women Narrative Program

<img src="/uploads/431198983_798814932284193_5123008915115861742_n_e2a0c757f2.jpg" alt="431198983_798814932284193_5123008915115861742_n.jpg">Mariam Koyava, the managing partner of SavvY, actively participated in the recent ICT Annual Meeting organized by the ICT Association of Georgia. The forum brought together stakeholders from the technology sector to discuss the current and future potential of Georgia's tech ecosystem.Mariam Koyava moderated a panel discussion on navigating the digital landscape and fostering collaboration between the public and private sectors.

ICTA Annual Meeting

ICTA Annual meeting

Mariam Koyava

Mariam Koyava Moderates Panel on Navigating Georgia's Digital Landscape

<figure class="image image_resized" style="width:100%;"><img src="/uploads/mariam_qoiava_w_h_7be886294e.jpeg" alt="mariam-qoiava_w_h.jpeg"></figure>Mariam Koyava discusses the dynamics of foreign direct investments on BMGTV's "Business Morning" program and in the joint column of BMG and SavvY, "time to invest," evaluating the impact of current events on FDI.Koyava notes that foreign investment dynamics in Georgia have remained stable since COVID-19. However, projecting the dynamics in 2024 is difficult due to ongoing processes in the region.“Regarding the dynamics of FDI, we can say that considering the COVID-19 factor, it is progressing steadily. Naturally, there were setbacks during the COVID-19 outbreak, as experienced by many other countries. However, we have observed growth in both volume and across various sectors. Notably, FDI has been active in trade, infrastructure, and energy.It will be challenging to assess the dynamics of 2024 due to what is happening in the region, the world, and the country - we call it "a hot" year when the dynamics can change daily," says Mariam Koyava.When asked about the impact of uncertainties on foreign direct investment, SavvY's managing partner explains that it is one of the biggest obstacles for investors, especially regarding long-term projects."Business and investments do not like uncertainty, and they don't like it very much - stability and consistency are essential factors for many investors and can even be vital. As investing in many sectors is not a short-term process, some sectors require quite a long-term development.Here, we often use McKinsey's strategic framework, where there are 4 business strategy levels, starting with&nbsp; 'A clear enough future' and ending with 'True ambiguity'. We use specific parameters to measure where a specific sector in a particular country falls within this framework. This is because uncertainty in any country or the world does not equally affect all sectors - some are affected more, and others are affected less. In some industries, uncertainties even create opportunities. But the main result of using this framework is that it reveals general behavioral regularities in times of uncertainty: do nothing, stop, wait, observe, assess the risks, and make a decision after that," explains Mariam Koyava.The managing partner of SavvY also discusses the sectors where FDI volumes are sustainable and stable.“Our research reveals an interesting trend that interest remains, first of all, in natural resources. For example, uncertainty does not affect investors' interest if there is oil, although Georgia cannot boast of having it.The second area encompasses sectors where value is created and maintained within the country, such as real estate, energy, industries focused on domestic trade, and the banking sector. Typically, interest in these sectors is increasing. However, local investors generally show more interest in these areas, leading to a decrease in direct foreign investments," explains Koyava.&nbsp;<a href="https://bm.ge/news/bizness-da-investitsiebs-gaurkvevlobebi-ar-uyvart-mariam-qoiava-fdi-ze">Read the full interview in Georgian here</a>

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"Business and investments do not like uncertainty" - Mariam Koyava

<figure class="image"><img src="/uploads/438162000_834046998760986_4601690486427395792_n_7f1aa1dd74.jpg" alt="438162000_834046998760986_4601690486427395792_n.jpg"></figure>ExpoGeorgia hosted the Real Estate Expo, which happened to be the biggest exhibition so far in Georgia. SavvY’s Managing Partner, Mariam Koyava, moderated the panel that discussed the overall investment climate in Georgia, EU Candidacy, and Perspectives for the Construction and Real Estate Industry in Georgia.The esteemed guests participating in the panel discussion were Mikheil Khidureli, CEO of Enterprise Georgia, Artis Zeila, head of strategic partnerships in the real estate division at Citadelle Bank, Latvia, and Marek Gola, a shareholder of Mirbud S.A (one of the most successful construction companies in Poland).

Real Estate Exhibition

Managing Partner of SavvY, Mariam Koyava, Moderates Key Panel at Georgia's Largest Real Estate Expo

<img src="/uploads/NZ_57218_fed149ce13.jpg" alt="_NZ57218.jpg">As Georgia strides towards closer ties with the European Union, the preparedness of our municipalities is the key to fostering dynamic, smart, and future-ready local development. The EU and UNDP through the #Mayors4EconomicGrowth #M4EG initiative are empowering selected municipalities with the training and support they need to leverage the funding and investment tools available in the EU.Currently, 11 Georgian municipalities, selected through a competitive process, are embarking on a journey with the 'Financial and Investment Preparedness Academy. &nbsp;This specialized programme builds municipal capacities for applying EU financial instruments and other accessible funding opportunities. Training and coaching will help municipalities craft effective positioning strategies and develop competitive investment ideas and project proposals for funding institutions and development partners. The programme will also assist these municipalities in assessing their existing financial mechanisms and aligning them with the relevant instruments of the EU, financial institutions, and development partners.&nbsp;<a href="https://www.facebook.com/hashtag/eu4georgia?__eep__=6&amp;__cft__[0]=AZVwHcnOUuhQfuAPRb2xoriWYnSlV4ENlWL_KzBtVSA-c9YmDajnW48wIOTpBhKgK_dEngLCG_eddn87a3wusq8I6qQQw4jHhhxjTyYCL5CuaEtU0t84g9BUhKwj0bff-YDcx-zcAI12RPw6aeSBHaUkrQoccGL91kW3f-p3dn2VMpL2Yqwo2SswznGiQ8DcaKY&amp;__tn__=*NK-R">#EU4Georgia</a>&nbsp;📸: UNDP/Vladimir Valishvili&nbsp;

Mayors for eg meeting - mariam koyava speech

M4EG

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M4EG Funding & Investment Preparedness academy

<figure class="image image_resized" style="width:100%;"><img src="/uploads/mariam_qoiava_w_h_c77d9d8a75.jpeg" alt="mariam-qoiava_w_h.jpeg"></figure>"Our next goal should be to attract quality investors," Mariam Koyava, managing partner of the consulting company SavvY, said during a visit to the BMGTV program Redact2. Koyava mentioned that work is underway in this regard.To the question of whether we should take pride in the foreign direct investment trends in Georgia, the respondent answers that the country has a positive trajectory considering the current situation in the region."Foreign direct investments are a significant parameter for all countries because, along with the cash inflow, investors often demand highly skilled labor and transfer knowledge and experience to the country. A question is frequently asked - why do we care so much about FDI instead of domestic investors? Regarding direct foreign investments, we have a normal indicator given the situation we have to contend with, including the post-COVID period, regional unrest, and the war factor; these are critical and sensitive issues.I think Georgia has a good trajectory in this respect, but what more can we do? In my opinion, our next step should be, and as far as I know, they are working on it, to attract quality investors. That is, not just investors who come in, carry out a project, and leave with their money, but rather investments that involve reinvestment over the medium term and leave behind knowledge and experience in the country," explained Koyava.When asked if Georgia has an attractive investment environment, Mariam Koyava says that Georgia must find its own niche and offerings to compete with other countries."Regarding investment attractiveness, if we look at taxes, we have quite loyal and attractive policies. The issue of the court system continues to be an obstacle for many investors, so private arbitration or adherence to international law may be utilized to enter or invest in the country. Litigation may be a concern, but investors can hedge against this risk through arbitration. We cannot attribute the lack of investor interest solely to the court system.And as for how Georgia might be found interesting, I believe we have offerings that could pique interest, such as the foreign direct investment grant or the loan subsidy component for many sectors, etc. Today, the competition for international investors is fierce among countries. Many nations are striving to showcase their competitive advantages; we need to demonstrate to investors why it is more advantageous and profitable for them to invest in our country. I think we should emphasize our competitive advantages more," said Mariam Koyava.She believes that Georgia has the potential to develop the balneotherapy and wellness sector.&nbsp;<a href="https://bm.ge/news/chveni-shemdegi-mizani-unda-iyos-rom-khariskhiani-investorebi-shemoviyvanot-mariam-qoiava">Read the full interview in Georgian here</a>

"Our next goal should be to attract quality investors" - Mariam Koyava

<img src="/uploads/IMG_6243_5247a560be.jpg" alt="Mariam Koyava speaking at the event">Mariam Koyava, managing partner of SavvY, participated in the "Women in Business and Policy" conference organized by Gazelle Finance.In a panel discussion, she shared her views on the difficulties of women's access to finance and ways to solve them.

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