Strategies of the Development of Entrepreneurship and SME

- Formation of favorable legal environment;- Financial and investment support and provision of loan guarantees;- Assistance for creation and development of support infrastructures;- Business information and consultancy support;- Promotion of foreign economic activities;- Support for application of innovations and modern technologies;- Performance of favorable tax policy;- Vocational education and training;- Creation of simplified systems for statistic reports and accountancy;- Support for procedure for performance of state purchasing.Besides, since 2000 other laws, governmental decrees and other legal acts have beenadopted in concern to entrepreneurship and SMEs, particularly: the Laws on “Simplified Tax”,“Protection of Internal Market”, “State Registration of Legal Entities”, “Sole Proprietorship”,“Licensing”, “Protection of Economic Competition”, “Limited Liability Companies”, “Joint StockCompanies”, “Trade and Services”, as well as some other strategic documents “RegionalEconomic Development Strategy of Armenia”, “Concept for Handicraft Development ofArmenia”, “Food Security Policy of Armenia”, “Poverty Alleviation Strategic Program ofArmenia” etc.According to the Law on SME State Support” since 2001, the Government of theRepublic of Armenia has elaborated SME state support annual programs, the main purpose ofthose is to continuously affect the enhancement of SME role in the social-economic andregional developments of the country. The funding for the programs is made from the statebudget outlined with a separate item line. Besides, international/foreign organizations eachyear provide financing to enlargement of the scope for implementation of SME state supportannual programs.Taking into account the content and implementation policy of the programs one can findan obvious progress in support volume and directions for various years’ programs, as well asselection of more targeted tools for their implementation.The SME state support annual programs contain a number of measures towardsfinancial (provision of loan guarantees to SMEs, financial support to start-ups) and technical(information, counseling, training support, assistance for application of ISO 9000 quality controlstandards, innovations into SMEs, assistance to Start-ups, assistance to promote good/servicesinto markets etc) support. In the scope of these programs the preference is given to support ofSMEs engaged in production, applying innovations and high technologies and having exportpotential as well as preference is given to development of entrepreneurial initiatives of start-upbusinesses, women, unemployed, disabled persons and refugees.It is worth to mention, that since 2004 the essential part for implementation of theprogram has been directed to support of operating and start-up SMEs outside Yerevan City: inthe regions (marzes) of the Republic of Armenia, mostly in distant and border-closesettlements.One of the essential achievements is the formation of the key structure responsible forimplementation of SME state support annual programs in Armenia, the Fund “Small andMedium Entrepreneurship Development National Center of Armenia” (SME DNC of Armenia) 24 .24 SME DNC of Armenia was established under the Government Decree (Decree N 282 19.03.2002) within theframework of SME State Support Program for 2002, as a program measure.87