SMEs are active in the processing industry (food and non-food). According to the data of 2018, out of 74,365 active taxpayers, 6491 are engaged in this sphere, 485 - in agriculture, forestry, fishing, 339 - in mining. In the field of industry, micro-organizations are more active, mainly operating in the field of agricultural processing.
SMEs have a growing share in GDP. It provides about 33% of GDP. To increase this share, small and medium-sized enterprise development policies remain in the focus of government attention. The National Center for Small and Medium Enterprise Development (SME DNC) of Armenia, established to identify their capabilities by different sectors of the economy, to provide financial and consulting support, is implementing a number of programs in this area of business. The organization also provides free consulting services to businesses in this sector.
Small and medium-sized businesses in Armenia rarely receive professional advice, which is explained by the lack of business management culture among Armenian businessmen. According to the analysis of Ameria Consulting Company, this is the most prominent of the many problems that hinder the development of SMEs in various industries. Only 14% of SMEs invest in industry innovations, 13% in marketing, and 6% in new types of products for the domestic market.
“Ensuring a competitive field is necessary for the activation and development of the SME sector in Armenia. And for that we need a fight against sectoral monopolies, real tax benefits, reduction of the number of inspections, etc. In addition, the Government of Armenia should initiate the financing and implementation of business management culture, capacity building programs for individual entrepreneurs. Direct financing of start-ups will contribute to their faster development” says Gharib Harutyunyan, an economist, President of the Compass Center in Gyumri.