Several thousands of small and mid-scale businesses companies closed in Armenia over one year - economist
21.07.2015,
11:42
Several thousands of small and mid-scale businesses companies have been closed in Armenia over one year, Gagik Makaryan, the head of the National Union of Employers, said on Monday.
YEREVAN, July 21. /ARKA/. Several thousands of small and mid-scale businesses companies have been closed in Armenia over one year, Gagik Makaryan, the head of the National Union of Employers, said on Monday.
He finds it necessary to change the understanding of the role of SMEs in social context, since such companies can contribute to removal of many adverse phenomena in Armenia’s economy, such as unemployment, a high poverty rate and migration, and also can lessen inequality among provinces' development degrees.
The economist also pointed out the necessity of providing the SMEs with access to international markets to narrow the gap between export and import.
He said conformity with international quality standards is needed for that, and only new, modernized and properly equipped companies can ensure that.
Makaryan said Armenia has close ties with the European Union and Russia, and now it should develop its relations with all the countries of the Eurasian Economic Union, particularly with Belarus and Kazakhstan, as well as with the United States and Iran.
Presenting the results of the survey that ran from May to July 2015 and embraced 107 small and medium-sized companies, he said 53% of respondents said decline in SME activity was seen mostly in trade businesses.
Referring to the results of the same survey, the economist said development of small and medium businesses is also hobbled by the lack of new technologies – 45% of respondents pointed out this factor.
In his words, 69% of the surveyed business people complained about constraint in availability of financial resources.
«Unequal conditions in competition, corruption, finance unavailability hobbles small and medium-size companies' development. Only 12% of the surveyed companies rated their condition as satisfactory,» 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----
He finds it necessary to change the understanding of the role of SMEs in social context, since such companies can contribute to removal of many adverse phenomena in Armenia’s economy, such as unemployment, a high poverty rate and migration, and also can lessen inequality among provinces' development degrees.
The economist also pointed out the necessity of providing the SMEs with access to international markets to narrow the gap between export and import.
He said conformity with international quality standards is needed for that, and only new, modernized and properly equipped companies can ensure that.
Makaryan said Armenia has close ties with the European Union and Russia, and now it should develop its relations with all the countries of the Eurasian Economic Union, particularly with Belarus and Kazakhstan, as well as with the United States and Iran.
Presenting the results of the survey that ran from May to July 2015 and embraced 107 small and medium-sized companies, he said 53% of respondents said decline in SME activity was seen mostly in trade businesses.
Referring to the results of the same survey, the economist said development of small and medium businesses is also hobbled by the lack of new technologies – 45% of respondents pointed out this factor.
In his words, 69% of the surveyed business people complained about constraint in availability of financial resources.
«Unequal conditions in competition, corruption, finance unavailability hobbles small and medium-size companies' development. Only 12% of the surveyed companies rated their condition as satisfactory,» 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----
