SME Development National Center of Armenia Karen Gevorgyan SME Development National Center of Armenia Deputy Executive Director BINet Regional Coordinator

“Small and Medium Entrepreneurship Development National Center” Fund (SME DNC of Armenia) was established by the decree of the Government of Armenia in 2002. SME DNC of Armenia is the first national structure in Armenia called to implement state support to small and medium entrepreneurship (SME) and programs directed to development of the sector, as well as to ensure a dialogue between small and medium enterprises, government and other structures. The Board of Trustees is the supreme governing body of the SME DNC of Armenia, the members of which represent several government structures and NGOs advocating the interests of SMEs. The Board is headed by the Minister of Economy.

Regional network of the SME DNC of Armenia 10 regional branch offices 3 representative offices

SME support directions Information & Consulting Training (Start-up business support program) Financial Support Local Economic Development Building of Industrial Systems Business Internationalization (EEN Activities)

Information & Consulting Awareness raising of SMEs on business legislation and recent changes Taxation issues and customs procedures Licensing, Standardization, Certification Financial Management and Accounting Business Manuals, Guides, Reference books

Goals and Objectives: Start-up Business Support Program establishment of new SMEs and workplaces in the marzes of Armenia, Support in realization of new business initiatives, upgrading business knowledge and skills of start-ups, facilitating access to finance.

Competency based Economies through Formation of Enterprises CEFE Competency based Economies through Formation of Enterprises

WHY CEFE OR WHAT IS CEFE? CEFE is a comprehensive set of training instruments using an action-oriented approach and experiential learning methods to develop and enhance the business management and personal competencies of a wide range of target groups, mostly in the context of income and employment generation and economic development. CEFE has proven to be a very successful approach for promotion of small and medium enterprises, employment, income and economic growth. It has been introduced in 150 countries during the last twenty years. Irrespective of educational background, knowledge and experience, entrepreneurs can obtain the necessary knowledge and develop their entrepreneurial skills CEFE widely employs adult training methods and tools. CEFE method encourages combination of entrepreneurial training course with delivery of consultancy and financial services

Program Phases Selection of participants and group formation Decision making on CEFE organization Preparatory stage Presentation and evaluation of Business Plans Financial Support Main training Coaching: Brain pools Monitoring and evaluation

Main topics Business idea development Marketing Management Production planning & net cost calculation Financial planning & cash flows How to register a legal entity in Armenian Basic Accounting Tax Legislation Duration is 80 hours As a result of the training business ideas turn to realistic and sustainable business plans

FINANCIAL SUPPORT Credit Amount Maximum 5 mln AMD , equivalent to 20000 USD Annual interest rate 10% Duration Maximum 5 years Collateral 100% Guarantee provided by SME DNC of Armenia Target group Start-up businessmen Participants presenting most realistic business plans get financial support and remain under the support umbrella of the SME DNC of Armenia on the way of their growth and development

Financial Support Loan Guarantees to operating SMEs Loan Guarantees to start-ups and operating SMEs Main priorities: SMEs operating in manufacturing and services sectors SMEs SMEs operating in the regions with low level of economic activity (close to the border and countryside settlements, disaster zone, former industrial and scientific sites) Import substituting, exporting SMEs and those with export potential SMEs introducing and using new technologies and innovations Loan Guarantees to operating SMEs Maximum Duration – 5 years Guarantee - up to 70% of loan amount, but not more than 15 mln AMD (36000-37000 USD)

Local Economic Development Economic mapping of the communities PACA exercises Identification and support in implementation of reviled economic initiatives

Building of Industrial Systems Development and Introduction of Replicable Business Models “Support to Dried Fruit Production” Selection of Potential Regions for the Program Identification of Project Beneficiaries Identification and Selection of Technologists Developing Quality Standards, Technological/Business Models, Homogenous Standards, Fruit-drying Manuals

Business Trainings for Beneficiaries Technological Trainings for Beneficiaries Financing Equipment and Infrastructure Set Up Access to Market Continuous Monitoring

Business Internationalization Enterprise Europe Network Business Cooperation Center in Armenia since 2008

Enterprise Europe Network www.smednc.am

Objectives of the Network To raise the awareness of European SMEs on business environment of Armenia and partnership opportunities. Upgrading knowledge and business skills of Armenian SMEs for doing business in European Single market. Development of internationally competitive SMEs and to increase the trans-national cooperation opportunities of SMEs by provision of business internationalization and innovation support. Development of the research and innovation capacities of Armenian SMEs, fostering trans-national technological cooperation.

Thank You For Your Attention Fund “Small and Medium Entrepreneurship Development National Center of Armenia” Tel.: (374 10) 54 16 45 Fax: (374 10) 54 16 42 E-mail: kgevorgyan@smednc.am , info@smednc.am URL: www.smednc.am