TBILISI: International Organizations Fund Small Business Development

INTERNATIONAL ORGANIZATIONS FUND SMALL BUSINESS DEVELOPMENT IN ARMENIA
By M. Alkhazashvili
(Translated by Diana Dundua)

The Messenger, Georgia
July 18 2007

USAID and the EBRD’s Early Transition Countries (ETC) initiative
are funding a second round of the Business Advisory Service (BAS)
program in Armenia. USAID is providing a USD 1.6 million grant, and
the EBRD ETC allotted USD 500 000 to support the program, according
to the news agency Regnum.

US Acting Charge d’Affairs to Armenia Rudolf Perina says USAID and EBRD
have long cooperated in developing local entrepreneurs and businesses.

The biggest challenge for hopeful business startups in Armenia,
says USAID, is a lack of financing.

Perina said that the US administration will soon allot an additional
USD 8.4 million in aid to Armenia, for use in the financial sector,
information technology, and tourism development.

A BAS representative in London says the 3-year second round of
the program is working to increase the numbers of micro and small
enterprises throughout Armenia, including the villages.

About 180 consultation programs are hoped for using USAID’s finances,
and 55 with money from EBRD ETC. Program reports predict this will
increase companies’ turnover by 10 percent and available jobs by
20 percent.

BAS has been operating in Armenia since May 2003. Since then, nearly
400 projects have been carried out under the program.