NERSES YERITSIAN: STATE INTENDS TO TAKE PART IN PERSPECTIVE SMEs

YEREVAN, MAY 5, NOYAN TAPAN. The Small and Medium Entrepreneurship
Development National Center (SME DNC) of Armenia along with the Union
of IT Enterprises has launched a pilot program of assistance to small
and medium enterprisies (SMEs) of the IT sector with the aim of
ensuring a considerable growth of these enterprises and helping them to
enter the capital market, the RA minister of economy Nerses Yeritsian
stated at the "without-tie" meeting of IT sector heads in Tsakhkadzor
on May 1-3. According to him, Instigate company has received assistance
under the program.

The minister said that the state is likely to have up to 20%
participation in capital of SMEs. As regards the possibility of the
state’s participation in venture financing programs, N. Yeritsian
indicated that such steps will follow more active involvement of SMEs
in scientific developments and research. In any case, the Competitive
Armenian Private Sector (CAPS) Project financed by the Armenian
government and the USAID has taken steps to set up a venture fund with
equal shares.

The minister spoke against introduction of tax privileges, explaining
that the tax and customs legiglation provides development
opportunities. In particular, in case of an active investment policy,
companies with annual income growth of 30-40% may have to pay a small
profit tax.

It was stated that SMEs should forms the basis for correcting the
deviations of the Armenian economy, the introduction of the best
standards in the economy and the creation of opportunities to enter
international market because the companies operating in accordance with
these standards will grow and "clean the business field".