About 70 percent of Armenian SMEs dissatisfied with availability of funding
YEREVAN, September 18. / ARKA /. A recent study conducted by Armenia’s National Union of Employers have revealed that about 70% of small and medium-sized businesses in the country are not satisfied with the level of financial resources availability.
The study, conducted with the assistance of the Friedrich Ebert Foundation, embraced 107 representatives of micro, small and medium-sized businesses, both in Yerevan and beyond it. It was the first such study conducted in Armenia.
Some 55.4% of the respondents have been running their businesses for about 10 years or more. More than half of respondents (56.2%) had from 1 to 10 employees, while about 17% - from 31 to 50.
Presenting the findings of the study, Gagik Makaryan, the chairman of the National Union of Employers, said it revealed a whole lot of problems in the field of SMEs, which appeared to be much deeper than expected.
According to the survey, 68.8% of those surveyed believe they need available financial resources to step up their businesses. At the same time 52% of respondents reported difficulties with receiving loans complaining also of high interest rates.
Makaryan said the government and the Central Bank of Armenia should take concrete steps to simplify loan arrangements.
The study shows that the second most important factor contributing to the development of businesses is the use of new technologies (45.5%), followed by the modernization of businesses (28.6%), personnel training (27.7%), improvement of management (25, 9%) and certification (21.4%).
At the same time, about 67% of respondents believe that development of SMEs in Armenia relies heavily on economic stability, 58.9% say lower interest rates are important, while another 48.2% say a favorable business climate is necessary.
According to a recent similar USAID-funded study on "Finance for Economic Development," about 50% of micro, small and medium enterprises in Armenia do not have access to finance. According to a revised methodology, SME account for 30% of Armenia’s GDP and according to latest data, there are about 70,000 small and medium-sized companies in Armenia. -0-
The study, conducted with the assistance of the Friedrich Ebert Foundation, embraced 107 representatives of micro, small and medium-sized businesses, both in Yerevan and beyond it. It was the first such study conducted in Armenia.
Some 55.4% of the respondents have been running their businesses for about 10 years or more. More than half of respondents (56.2%) had from 1 to 10 employees, while about 17% - from 31 to 50.
Presenting the findings of the study, Gagik Makaryan, the chairman of the National Union of Employers, said it revealed a whole lot of problems in the field of SMEs, which appeared to be much deeper than expected.
According to the survey, 68.8% of those surveyed believe they need available financial resources to step up their businesses. At the same time 52% of respondents reported difficulties with receiving loans complaining also of high interest rates.
Makaryan said the government and the Central Bank of Armenia should take concrete steps to simplify loan arrangements.
The study shows that the second most important factor contributing to the development of businesses is the use of new technologies (45.5%), followed by the modernization of businesses (28.6%), personnel training (27.7%), improvement of management (25, 9%) and certification (21.4%).
At the same time, about 67% of respondents believe that development of SMEs in Armenia relies heavily on economic stability, 58.9% say lower interest rates are important, while another 48.2% say a favorable business climate is necessary.
According to a recent similar USAID-funded study on "Finance for Economic Development," about 50% of micro, small and medium enterprises in Armenia do not have access to finance. According to a revised methodology, SME account for 30% of Armenia’s GDP and according to latest data, there are about 70,000 small and medium-sized companies in Armenia. -0-