Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
Strategies of the Development of Entrepreneurship and SME
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
General Characteristic <strong>of</strong> <strong>SME</strong> <strong>Development</strong>At present <strong>the</strong> <strong>SME</strong> development has shifted to a qualitatively new stage, when statesupport system in this direction is being developed <strong>and</strong> streng<strong>the</strong>ned, volumes <strong>and</strong> geography<strong>of</strong> financial <strong>and</strong> technical support provided to <strong>SME</strong>s have been expended, mechanisms <strong>and</strong>procedures for <strong>the</strong>ir provision have been improved.As a result <strong>of</strong> consistent policy towards <strong>the</strong> <strong>SME</strong> state support a dynamic growth <strong>of</strong>indicators describing <strong>the</strong> <strong>SME</strong> sector has been recorded. In 2006, <strong>the</strong> share <strong>of</strong> <strong>SME</strong> in <strong>the</strong>country’s Gross Domestic Product (GDP) composed 40.3% 25 almost twice exciding <strong>the</strong> level <strong>of</strong>2000. The dynamics <strong>of</strong> <strong>the</strong> <strong>SME</strong>’s share in <strong>the</strong> country’s GDP for 2003-2006 is illustrated byChart 1. 26 36.52006200539.840.3200438.62003Chart 1: The share <strong>of</strong> <strong>SME</strong> sector in <strong>the</strong> country’s GDP: 2003-2006 (%)<strong>SME</strong>s operate in all economic areas <strong>of</strong> Armenia, covering <strong>the</strong> sectors <strong>of</strong> trade <strong>and</strong>services as well as utilization <strong>of</strong> high technology <strong>and</strong> industries with scientific output thusaccounting for 97-98% <strong>of</strong> Armenian economic units.It is quite notable that <strong>the</strong> number <strong>of</strong> <strong>SME</strong>s is increasing year by year. It’s essential <strong>the</strong>role <strong>of</strong> <strong>SME</strong>s as for creation <strong>of</strong> new job places. Since 2003, more than 40,000 <strong>SME</strong>s have beenestablished which have provided about 100,000 new jobs. It is worth to mention that only in2006 in <strong>the</strong> result <strong>of</strong> new established <strong>SME</strong>s as well as expansion <strong>of</strong> activities <strong>of</strong> operating onesmore than 20,300 new jobs were created. The 50.2% <strong>of</strong> <strong>the</strong> new created jobs consider to <strong>the</strong>regions <strong>of</strong> Armenia <strong>and</strong> 49.8% to Yerevan city. 27It was registered stable growth <strong>of</strong> <strong>the</strong> <strong>SME</strong>’s share in <strong>the</strong> total employment composing35.1% in 2006. The dynamics <strong>of</strong> <strong>the</strong> mentioned indicator for 2003-2006 is shown in Chart 2. 2825 Excluding net taxes <strong>and</strong> agriculture because <strong>of</strong> <strong>the</strong> absence <strong>of</strong> truthful estimation in <strong>the</strong>se sectors.26 “<strong>SME</strong> Sector in Armenia: 2003-2004” Reference Book, page 8: “<strong>SME</strong> Sector in Armenia: 2005-2006” ReferenceBook, page 35. <strong>SME</strong> DNC <strong>of</strong> Armenia.27 “Report on Activities <strong>of</strong> <strong>SME</strong> <strong>Development</strong> National Center <strong>of</strong> Armenia in 2006”, <strong>SME</strong> DNC <strong>of</strong> Armenia, page 8.28 <strong>SME</strong> Sector in Armenia: 2003-2004 “ Reference Book, page 19; “ <strong>SME</strong> sector in Armenia: 2005-2006” ReferenceBook , page 46. <strong>SME</strong> DNC <strong>of</strong> Armenia.88
Change language