Strategies of the Development of Entrepreneurship and SME

5 million was provided by UNDP and AMD 7 million was allocated for implementation of theProject in 2 regions of Armenia (Gegharkunik and Tavush marzes) by UK DFID. According toobtained preliminary arrangements during 2007 the ''top capital'' has a tendency to increaseabout twice.In scope of the Project for Support of Start-Up Businesses in 2006 financial supportamounted for AMD 5 million was provided by ACBA Credit Agricol bank to 6 start-upbusinesses. 335.2.5. Tasks for improvement and further development of the SME sectorSo far we were talking about “evidential” achievements of the SME state policy. But there is nodoubt that the real achievements of the State consider to positive changes from the SME’s andmacroeconomic point of view. The question is not only support to SMEs, but also to discovernecessary changes in SMEs via support and development programs. It means that the realachievements of the main instruments for SME state policy, which are SME state supportannual programs should be mostly connected with the positive changes in behavior of SMEsand overall social-economic situation of the country. Trying to explain the raised argument itshould be implied that the agenda of building strong basis for SME state support is still notcomplete in the country especially in light with identifying principal tools to overcome numberof problems, which still hinder sustainable development of SME sector 34 . Moreover, among theseveral pressing challenges the overarching one is that of tackling financial and technicalobstacles of SME sector via more efficient measures in order to sustain stability and continuouslogicality of the programs. To this concern it should be mentioned that the results of theprograms are not appraised in mature ways. 35 The monitoring of the programs only indicatesthe number of SMEs receiving state support and their regional and sectoral distribution as well,which is not sufficient for identifying real results of the programs. Having into consideration thefact that above-mentioned programs are the main policy tools of state policy, there is no doubtthat the only mechanism “to measure” the productivity of state policy is the introduction ofsolid granting system for program results connected to the goals and opportunities of SMEstate support. Application of a robust granting practice for SME state support annual programswill assuredly create new opportunities for provision of “on demand” support to SMEs, which inturn will path a way to more efficiently utilize the potential of SME sector in light with thesocial-economic development of the country. It will also record the real effectiveness of thestate incentive without distorting the market self-regulation system.The long-term objectives should be set on development and support of SME sector toallow this sector to function in such a way that it contributes to improving the performance ofthe national economy and its competitiveness, to reducing unemployment and regional, socialand economic differences as key requisites for economic development of society. For achievingthis goal sustainable steps should be implemented towards strengthening and expansion of theSME support infrastructure in the country. Each endeavor towards SME development should bedone mutually including all the interested parties.33 “Report on Activities of SME DNC of Armenia, page 1934 Along with tendency for development of this sector as a result of surveys and administrative monitoring severalproblems revealed that SMEs still encounter dealing with financing, tax and custom administration, difficulties forobtaining up-to date information, counseling and training support etc.The programs have being elaborated and monitored by the Ministry of Trade and Economic Development of theRepublic of Armenia. The monitoring of these programs occurs on a monthly, quarterly, semester and annual basis inthe result of reporting by the SME DNC of Armenia.35 The programs have being elaborated and monitored by the Ministry of Trade and Economic Development of theRepublic of Armenia. The monitoring of these programs occurs on a monthly, quarterly, semester and annual basis inthe result of reporting by the SME DNC of Armenia.96