Almost half of Armenian SMEs dissatisfied with government policy in this area- survey
20.07.2015,
17:28
According to the findings of a survey conducted by the National Union of Employers, almost half of Armenian small and medium-sized companies are dissatisfied with the government’s policy in this area.
YEREVAN, July 20. / ARKA /. According to the findings of a survey conducted by the National Union of Employers, almost half of Armenian small and medium-sized companies are dissatisfied with the government’s policy in this area. The results of the survey were announced today by the head of the union Gagik Makaryan.
The survey that ran from May to July 2015, embraced 107 small and medium-sized companies, including companies operating in the market for more than 10 years (55%), as well as companies with experience of 9-6 years (13%).
"The survey has exposed a very sad picture of what we had already informed the government. The findings suggest that the government policy on SMEs should be fully revised,’ Makaryan told a news conference.
Makaryan said about 33% of SMEs pointed out discrepancies in the tax legislation as a major obstacle to their activities. When answering this question 27% indicated the frequency of changes in the law, while 18% pointed out the imperfection of the legislation.
Another 21% of respondents pointed out the low purchasing power of the population as an obstacle to doing business and 23% said it was the unstable economic situation.
At the same time the majority of SMEs (52%) said inaccessibility of financial resources and high interest rates were a major obstacle to doing business.
"On the one hand the government is trying to improve the situation in the SME sector, but on the other hand it deprives SMEs of a vital resource as the issue of availability of funds is not regulated with the Central Bank", said Makaryan.
Makaryan believes that the Central Bank should review its refinancing rate policy.
"It is necessary to introduce risk management mechanisms so that banks stop complaining about high level of risk, which they cite to justify high interest rates,' Makaryan said.
There are about 70,000 SMEs in Armenia, including 58,000 micro and small businesses. Although they account for 43% of Armenia's GDP, their contribution to overall tax revenues is about 5-6%. -0-
The survey that ran from May to July 2015, embraced 107 small and medium-sized companies, including companies operating in the market for more than 10 years (55%), as well as companies with experience of 9-6 years (13%).
"The survey has exposed a very sad picture of what we had already informed the government. The findings suggest that the government policy on SMEs should be fully revised,’ Makaryan told a news conference.
Makaryan said about 33% of SMEs pointed out discrepancies in the tax legislation as a major obstacle to their activities. When answering this question 27% indicated the frequency of changes in the law, while 18% pointed out the imperfection of the legislation.
Another 21% of respondents pointed out the low purchasing power of the population as an obstacle to doing business and 23% said it was the unstable economic situation.
At the same time the majority of SMEs (52%) said inaccessibility of financial resources and high interest rates were a major obstacle to doing business.
"On the one hand the government is trying to improve the situation in the SME sector, but on the other hand it deprives SMEs of a vital resource as the issue of availability of funds is not regulated with the Central Bank", said Makaryan.
Makaryan believes that the Central Bank should review its refinancing rate policy.
"It is necessary to introduce risk management mechanisms so that banks stop complaining about high level of risk, which they cite to justify high interest rates,' Makaryan said.
There are about 70,000 SMEs in Armenia, including 58,000 micro and small businesses. Although they account for 43% of Armenia's GDP, their contribution to overall tax revenues is about 5-6%. -0-
