Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
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ARMENIASTRENGTHS• Application <strong>of</strong> core principals <strong>and</strong> directions<strong>of</strong> <strong>SME</strong> development in <strong>the</strong> result <strong>of</strong>efficient implementation <strong>of</strong> <strong>SME</strong> Statesupport annual programs;• Provision <strong>of</strong> <strong>SME</strong> state support throughoutArmenia via efficient operation <strong>of</strong> central<strong>and</strong> regional subsidiaries <strong>of</strong> <strong>the</strong> Small <strong>and</strong>Medium <strong>Entrepreneurship</strong> <strong>Development</strong>National Centre <strong>of</strong> Armenia (<strong>SME</strong> DNC <strong>of</strong>Armenia, established in March 2002 by <strong>the</strong>Governmental Decree);• Growing share <strong>of</strong> <strong>SME</strong> sector in <strong>the</strong>country’s GDP <strong>and</strong> o<strong>the</strong>r macroeconomicindicators;• Registering property needs less number <strong>of</strong>steps in <strong>the</strong> BSEC region• Transparent evaluation report on <strong>the</strong> <strong>SME</strong>State Support Annual Programs available onnetWEEKNESSES• Unfriendly tax administration;• Poor access <strong>of</strong> <strong>SME</strong>s to financial resources;• Lack <strong>of</strong> alternative financial sources for<strong>SME</strong>s;• Lack <strong>of</strong> managerial skills <strong>of</strong> <strong>SME</strong> leadersespecially in <strong>the</strong> regions <strong>of</strong> Armenia;• Deficient level <strong>of</strong> mid <strong>and</strong> inter-regionaleconomic cooperation between <strong>SME</strong>s;OPPORTUNITIES• The continuous <strong>and</strong> targeted <strong>SME</strong>development policy will streng<strong>the</strong>n <strong>SME</strong>state support system, as well as enlargedirections, increase volume <strong>and</strong> geography<strong>of</strong> technical <strong>and</strong> financial support to <strong>SME</strong>s;• Enlargement <strong>of</strong> <strong>the</strong> scope for internationalcooperation (EU countries <strong>and</strong>international/foreign organizations) willprovide an opportunity to implement newprojects <strong>and</strong> apply efficient mechanisms fordevelopment <strong>of</strong> <strong>SME</strong> sector on a newqualitative phase;• Membership <strong>of</strong> Armenia to World TradeOrganization (WTO) enhances <strong>the</strong>opportunities for number <strong>of</strong> <strong>SME</strong>s to enterforeign markets.•THREATS• Bureaucracy <strong>and</strong> corruption are seen as one <strong>of</strong>major threats hindering <strong>the</strong> development <strong>of</strong><strong>SME</strong>s;• Threat for unstable situation around Armenia<strong>and</strong> unregulated regional conflicts;• High polarization for income distribution <strong>of</strong>population;Source:(1) Antal Szabó – Anna Petrosyan: <strong>SME</strong>s in <strong>the</strong> Caucasian countries in transition. Spinger-Verlag2006.(2) Review by Anna Petrosyan, Representative <strong>of</strong> <strong>the</strong> Ministry <strong>of</strong> Trade <strong>and</strong> Economic <strong>Development</strong>(3) World Bank Doing Business 2008, Economic Ranking142
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