Small and medium companies account for 42% of Armenia’s GDP
14.12.2010,
21:49
Small and medium-sized companies account for 42% of Armenia’s overall Gross Domestic Product (GDP), according to Gagik Makarian, the executive director of the Union of Armenian Businessmen and Industrialists.
YEREVAN, December 14, /ARKA/. Small and medium-sized companies account for 42% of Armenia’s overall Gross Domestic Product (GDP), according to Gagik Makarian, the executive director of the Union of Armenian Businessmen and Industrialists.
Speaking at a news conference today he said some 98% of 130,000 formally registered small and medium companies have no serious impact on the formation of the GDP. According to him, this sector may employ from 220,000 to 250,000 people.
‘Out of 1.1 million able-bodied Armenian population only 100,000 are production workers. The rest are engaged in services sector,’ he said.
Speaking about SMS major problems he singled out low productivity, which he blamed on owners and managers’ lack of skills and unawareness of laws and management practices.
Gagik Makarian also stressed the limited possibilities of SMS to get loans to boost their productions. He said such companies are usually non-transparent and unable to present their work in a proper manner to banks to seek loans. In his words, banks are too reluctant to work with such customers because they spend as much of efforts to provide a loan to a small company as they do when providing a loan to a big company, but the latter brings more profits. -0-
Speaking at a news conference today he said some 98% of 130,000 formally registered small and medium companies have no serious impact on the formation of the GDP. According to him, this sector may employ from 220,000 to 250,000 people.
‘Out of 1.1 million able-bodied Armenian population only 100,000 are production workers. The rest are engaged in services sector,’ he said.
Speaking about SMS major problems he singled out low productivity, which he blamed on owners and managers’ lack of skills and unawareness of laws and management practices.
Gagik Makarian also stressed the limited possibilities of SMS to get loans to boost their productions. He said such companies are usually non-transparent and unable to present their work in a proper manner to banks to seek loans. In his words, banks are too reluctant to work with such customers because they spend as much of efforts to provide a loan to a small company as they do when providing a loan to a big company, but the latter brings more profits. -0-
