NUMBER OF APPLICATIONS TO SME DNC GROWS BY 25-30% IN 2009

Noyan Tapan
Feb 19, 2010

YEREVAN, FEBRUARY 19, NOYAN TAPAN. 4,700 startups and operating
entities received assistance in 2009 under the state assistance program
implemented by the Small and Medium Entrepreneurship Development
National Center of Armenia (SME DNC). 1,364 out of these entities
received assistance in several directions. During a talk with NT
correspondent, Executive Director of SME DNC Ishkhan Karapetyan
said that 71.2% of these small and medium enterprises (SME) received
assistance for the first time, and 9,300 applications were granted.

The number of applications to SME DNC grew by 25-30% in 2009 compared
with the previous years.

According to him, over the past 5 years, assistance was provided
to more than 20 thousand startups and operating small and medium
enterprises under the state assistance program being implemented by
SME DNC. Advisory services, information and training-related assistance
were provided to help startups with attracting the necessary financial
resources, etc. It was mentioned that under annual state assistance
programs, allocations of 300 million drams were given in 2005, 350
million drams in 2006, 400 million drams in 2007, 450 million drams
in 2008, and 572.5 million drams in 2009.

I. Karapetyan said that with the use of the relevant mechanisms,
their center co-finances SME both in Yerevan and regions to help them
solve their problems related to accounting, preparation of financial
statements and so on. In 2009 a Center of Accounting Services opened
in Yerevan with the aim of aiding SMEs in their accounting, audit
and internal control, preparation of tax returns and other problems
related to the tax service. Last year such assistance was provided
to over 180 SME.

I. Karapetian considered the establishment of SME Invetsment.

Universal Credit Organization with an authorized capital of 1.15
billion drams as one of the most important achievements of last year.

Its purpose is direct crediting of SME and financing their capital.

SME DNC cooperates with the Accounting Center’s organizations rendering
business services so that SME can submit electronic statements to
the State Revenue Committee.

As regards the activities of the operative staff set up by the
government for supporting small and medium enterpeneurs who face
difficulties in conditions of the global financial and economic crisis,
I. Karapetyan said last year SME DNC took measures to assist with the
implementation of the business plans and projects aprroved by the
operative staff. The government allocated about 30 million dollars
with this aim. Work on 17 out of the 30 projects discussed by the staff
has begun. Assistance of 3.26 billion drams for the implementation of
business plans has already been provided. Among enterprises to have
received assitance are canneries, as well as a number of enterprises
engaged in the textile industry and the IT sector.

It should be mentioned that on 21 January of this year, the 2010
SME state assistance program was approved. It envisages maintaining
the scope of assistance measures and expanding cooperation with
international organizations. 150 million drams (about 395 thousand
USD) has been allocated from the RA state budget for the program’s
implementation.