Panorama.am

15:10 02/06/06

SMALL AND MID SIZE BUSINESS DEVELOPING IN ARMENIA DESPITE OF
UNFAVORABLE CONDITIONS

National Center on Development of Small and Mid Size Business in
Armenia opened a new office today in Yerevan. In the words of the
executive director of the center Ishkhan Karapetyan more than 12 000
entrepreneurs received assistance from the organization from 2003 to
2005. The state subsidized 820 mln Armenian drams for that
purpose. According to I. Karapetyan small and mid size business has a
tendency to develop in Armenia with a reported 40% rate.

Despite of the fact that the center is supported by UNDP, OSCE, German
Society on Technical Cooperation (GTZ) and several others, the deputy
representative of UNDP in Armenia Alexander Avanesov thinks this is `a
government project.’ The projects will be evaluated by OSCE. `We were
so excited by incubator enterprises in Goris that we decided to fund
it,’ OSCE representative Frank Frant said. He urged donors to fund the
project requiring Euro 3000.

According to A. Avanesov, the main problems for small and mid size
businesses are their start and probability of survival. `We focus on
education but then the most important part comes – the funding. Bank
rates are high, softly speaking. On the other hand, the ministry of
trade thrice increases the guarantees for providing resources for
small and mid size businesses. Under such conditions, the banks may
lower credit conditions,’ Avanesov says.

National Center on Development of Small and Mid Size Business in
Armenia established by the decision of government in 2002. It is
called to connect small and mid size business entities with the
government structures. The Fund has representations in all the regions
of Armenia and provides financial, consulting and educational support
to business community. /Panorama.am/