The head of the Republican Union of Employers is advocating that the Armenian government establish as special fund to help small and medium sized enterprises (SMEs) develop.
According to economist and head of the Republican Union of Employers Gagik Makaryan, Armenian SMEs are not growing fast enough. SMEs account for 28 % of the country’s gross domestic product (GDP), and over the past several years this indicator has not exceeded 30 %.
For Makaryan, these numbers seem ‘strange’. ‘SMEs must have a tangible part in Armenia’s GDP’, he says, noting that there are 56 000 micro-businesses, 20 000 small businesses and only 550 mid-sized businesses in Armenia.
To fix this, the Republican Union of Employers has sent an official letter to the government outlining a range of proposals. One proposal urges the establishment of a special fund of USD 100 million. Makaryan believes this amount will lead to the creation of 70 new SMEs, with each SME creating 100 – 150 new jobs.
‘Such a fund may become an engine of a new industry in Armenia’, says Makaryan.
The proposed fund will be responsible for implementing strategic management, financial audits and key staff appointments within established SMEs. Makaryan projects that with the fund, the Armenian economy could see an immediate 4 % in growth and up to 10 % in the near future.