Small and medium-size companies in Armenia reduce innovative capital investments
10.03.2020,
16:48
Small and medium-size companies in Armenia have reduced innovative capital investments, Tigran Jrbashyan, director of Ameria Management Consulting Service, said on Tuesday presenting the results of the company's SME market study.
YEREVAN, March 10. /ARKA/. Small and medium-size companies in Armenia have reduced innovative capital investments, Tigran Jrbashyan, director of Ameria Management Consulting Service, said on Tuesday presenting the results of the company's SME market study.
Ameria CJSC conducted a study of small and medium-sized businesses in Armenia in March-May 2019 based on surveys of 729 SMEs in 5 cities of Armenia - Yerevan, Vanadzor, Gyumri, Armavir and Echmiadzin. Of them, 93.8% are micro-businesses, 51% are small and about 1% are medium-sized businesses. Prior to that, a similar study was conducted in 2013.
"SMEs' innovative capital investments are mainly aimed at increasing reserves. SMEs are not ready for new investments today, which causes concern over the future and points out the necessity of a change in state policy," Jrbashyan said. According to him, these investments should lead to increase of productivity and a more optimistic attitude in the future.
He noted that in the context of SME investments, certainty is needed from the point of view of state economic policy in order to understand the prospects, strategic programs and the implementation of the relevant very targeted state policy. According to the expert, the previously applied approaches will no longer work, since SMEs require a very targeted approach.
"Entrepreneurship is a risk, and SMEs are not ready to take it now, so they invest financial means in commodity resources, not in expanding or introducing innovations or developing technologies," Jrbashyan said. He said that according to the study, the number of SMEs operating in Armenia, in comparison with 2013, increased by 4,000 entities and today there are 144,4000 companies in this area, of which 94% are micro-businesses, about 5% are small and less than 1% - medium businesses.
Nevertheless, according to the study, the main investments of SMEs are made in reserves, not in technological and innovative development.
Ameria is a leading consulting company in Armenia. It conducts large-scale events in various areas, such as corporate reorganization, mergers and acquisitions, legal consulting, direct and portfolio investments, business planning, strategic and tax planning, financial consulting, public administration and reforms.
Ameria Consulting Company, a member of the Ameria Group, offers independent confidential and impartial consulting services in five areas: business, financial, accounting and tax, legal, and investment consulting.–0—
Ameria CJSC conducted a study of small and medium-sized businesses in Armenia in March-May 2019 based on surveys of 729 SMEs in 5 cities of Armenia - Yerevan, Vanadzor, Gyumri, Armavir and Echmiadzin. Of them, 93.8% are micro-businesses, 51% are small and about 1% are medium-sized businesses. Prior to that, a similar study was conducted in 2013.
"SMEs' innovative capital investments are mainly aimed at increasing reserves. SMEs are not ready for new investments today, which causes concern over the future and points out the necessity of a change in state policy," Jrbashyan said. According to him, these investments should lead to increase of productivity and a more optimistic attitude in the future.
He noted that in the context of SME investments, certainty is needed from the point of view of state economic policy in order to understand the prospects, strategic programs and the implementation of the relevant very targeted state policy. According to the expert, the previously applied approaches will no longer work, since SMEs require a very targeted approach.
"Entrepreneurship is a risk, and SMEs are not ready to take it now, so they invest financial means in commodity resources, not in expanding or introducing innovations or developing technologies," Jrbashyan said. He said that according to the study, the number of SMEs operating in Armenia, in comparison with 2013, increased by 4,000 entities and today there are 144,4000 companies in this area, of which 94% are micro-businesses, about 5% are small and less than 1% - medium businesses.
Nevertheless, according to the study, the main investments of SMEs are made in reserves, not in technological and innovative development.
Ameria is a leading consulting company in Armenia. It conducts large-scale events in various areas, such as corporate reorganization, mergers and acquisitions, legal consulting, direct and portfolio investments, business planning, strategic and tax planning, financial consulting, public administration and reforms.
Ameria Consulting Company, a member of the Ameria Group, offers independent confidential and impartial consulting services in five areas: business, financial, accounting and tax, legal, and investment consulting.–0—
