14-15 July, Constanta, Romania SME Development National Center of Armenia Enterprise Europe Network Correspondence Center in Armenia Management Meeting 14-15 July, Constanta, Romania Lilit Apujanyan International Cooperation Programs Coordinator SME DNC of Armenia

SMEs in Armenia 2009 Share of SMEs in GDP – 42.5% Share of SMEs in total number of enterprises - 97.7% Share of SMEs in employment – 42.2% Share of SMEs in Export – 17.4%

Dynamics of SMEs contribution to GDP in 2002-2009

NEW THRESHOLDS IN ARMENIA Headcount: Annual Work Unit (AWU) MEDIUM SMALL MICRO Enterprise category Annual turnover balance sheet total < 250 < 50 < 10 ≤ 1500 mln AMD Eq. to 3 mln Euro ≤1000 mln AMD Eq. to 2 mln Euro ≤ 500 mln AMD Eq. to 1 mln Euro ≤ 100 mln AMD Eq. to 200 thousands Euro or or or or

SME DNC of Armenia “Small and Medium Entrepreneurship Development National Center” Fund (SME DNC of Armenia) was established by the decree of the Government of the RA 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 public organizations advocating the interests of SMEs.

Regional network of the SME DNC of Armenia 10 regional branch offices 2 representative offices

SME DNC of Armenia Objectives Increasing the efficiency and competitiveness of SMEs Ensuring availability of business development services for SMEs Expanding the financing opportunities for SMEs Providing technical and financial support to start up and operating SMEs Encouraging external economic activities of SMEs Expanding the opportunities for doing business in Armenia

Technical assistance Start –up support Information and Consulting Business training Sales promotion

Financial assistance Seed capital Loan guarantees Interest rates subsidizing Equity financing

SME DNC web-site www.smednc.am

Enterprise Europe Network Coorespondence Center in Armenia since 2008

Objectives of the Network Provision of Information and practical advice on market opportunities, European legislation and policies relevant to a company sector. Supporting Armenian SMEs to find suitable business partners, to carry out the negotiations and endorse cooperation agreements. Upgrading knowledge and business skills of Armenian SMEs for doing business in European Single market. Development of the research and innovation capacities of Armenian SMEs, fostering technological cooperation.

Objectives of the Network Provision of specialized advisory services to SMEs have identified as mature for establishment of transnational cooperation or already engaged in negotiation phase in terms of co-financing of consulting services, as well as provision of financial support via loan guarantees, seed capital, interest rate subsidizing and equity financing schemes. Publication of series of brochures, simplified business manuals on general and product specific requirements for exporting to EU countries.

Enterprise Europe Network SME DNC web-site Enterprise Europe Network 45 countries 600 local partner organisations 4000 experienced staff www.smednc.am

SME DNC web-site www.smednc.am Enterprise Europe Network General Info Services Staff BCD BBS Events News www.smednc.am News and Events Subscription

BCD Business Cooperation Database www.smednc.am

BLACK SEA TRADNET Lilit Apujanyan - Coordinator Violeta Virabyan- Program officer Lilit Hayrapetyan - Technical Responsible

Thank You For Your Attention Lilit Apujanyan Fund “Small and Medium Entrepreneurship Development National Center of Armenia” Enterprise Europe Network Correspondence Center in Armenia Tel.: (+374 10) 54 16 48 Fax: (+374 10) 54 16 42 E-mail: lapujanyan@smednc.am URL: www.smednc.am