Strategies of the Development of Entrepreneurship and SME

32.93435.1312003 2004 2005 2006Chart 2: Share of SME sector’s employees in number of economically activepopulation engaged in economy, 2003-2006 (%)Figures in Table 18. illustrate the share of SMEs in foreign trade turnover for 2003-2006. 29Share of SMEs and large enterprises in foreign trade turnover for 2003-2006 [%]Table 18.Indicator2003 2004 2005 2006SMEs Large SMEs Large SMEs Large SMEs LargeExport 14.3 85.7 15.7 84.3 16.4 83.6 16.9 83.1Import 31.6 68.4 34.8 65.2 36.3 63.7 36.8 63.2According to statistical analysis, in 2006 the participation of SME sector in exportreached to 16.9%, although large enterprises are still dominating in foreign trade. Consideringthis issue it should be argued that one of the main reasons of the SME’s low share in thementioned macroeconomic indicator is connected with orientation to internal market, sincegenerating part of Armenian SMEs is not able to satisfy the main requirements of externalmarkets and continuously faced with number of obstacles created mostly by legislative andbureaucratic features of export-import procedures.Index of SME Development in Armenia as an overall (aggregate) economic indicator,which was estimated according to methodology determined by the United Nations EconomicCommission for Europe (UNECE), according to data for 2006 has composed 237.2: comparedwith the level of 2003 it has increased about 3 times. The dynamics of the Index for 2003-2006, is shown in Table 14. 3029 SME sector in Armenia 2003-2004 “, “ SME sector in Armenia 2004-2005”, “ SME sector in Armenia 2005-2006” ReferenceBook , SME DNC of Armenia30 SME sector in Armenia 2003-2004“, “ SME sector in Armenia 2004-2005”, “SME sector in Armenia 2005-2006” Reference Book, SME DNC of Armenia89