1. SME Development National Center of Armenia
Karen Gevorgyan
Deputy Executive Director
SME Development National Center of Armenia
Enterprise Europe Network Correspondence Center in Armeniaevorg

2. “Small and Medium Entrepreneurship Development National Center” Fund (SME DNC of Armenia)
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.

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

4. SME 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

5. Distribution of SMEs by size, 2012

6. Distribution of SMEs by regions

7. SME support directions
Information and Analytical
Consulting
Training (Start-up business support program)
Financial Support
Local Economic Development
Business Internationalization (EEN Activities)

8. Information & Consulting
Awareness raising of SMEs on business legislation and recent changes
Consultancy on taxation issues and customs procedures, Licensing, Standardization, Certification, Financial Management and Accounting , etc.
Seminars, workshops, trainings
Publication of Business Manuals, Guides, Reference books

9. 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.

10. 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

11. 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

12. FINANCIAL SUPPORT
Credit Amount
Maximum 5 mln AMD , equivalent to 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

13. 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 ( USD)

14. Local Economic Development
Economic mapping of the communities
PACA exercises
Identification and support in implementation of reviled economic initiatives
Sector Specific Business Trainings for Beneficiaries
Technological Trainings for Beneficiaries
Small Grants in a for of Equipment and Infrastructure Set Up
Access to Market
Continuous Monitoring

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

16. Enterprise Europe Network
More than 50 countries
600 partner organisations
4000 experienced staff

17. The WEB site of SME DNC

18. The objectives of the Network
Increasing of awareness of European SMEs on business environment of Armenia and cooperation opportunities.
Improvement of business skills of Armenian businessmen for doing business in European market.
Formation of internationally competitive SMEs and increasing of trans boundary cooperation opportunities of SMEs by provision of internationalisation and innovation support.
Development of research and innovation capacities of Armenian SMEs promoting the trans boundary technology cooperation.

19. Main activities of the Network
Promotion of the Network in local level and increasing of awareness and consciousness on Network functions, supporting the Network common trademark and culture.
Provision of information and practical consultancy on market opportunities, as well as on European laws and policy corresponding to the sphere of activity of the companies.
Provision of informative and practical consultancy to European SMEs on internal market demand, legislation, importing/ exporting activities, clarifications on certain problems, activities or suppliers of different spheres.
Searching of possible partners for Armenian SMEs in business and technology database, as well as in research projects’ database using the searching corresponding tools of the Network and presenting Expressions of interests.

20. Main functions of the Network
Provision of support to SMEs on negotiations and cooperation agreements’ signing.
Implementation of technology audit in client companies which are acting in the priority spheres of Armenian economy, assessing their technology by the view of using of new technologies’ presentation service.
Trans boundary cooperation and/or visit to company in foreign countries, or ensuring of participation in brokerage events organized by other Network partners.
Providing the information on FP7 projects as cooperating with the National Academy of Science of Armenia.

21. SME DNC web-site
News and Events Subscription

22. BCD Business Cooperation Database
Business/technology cooperation profiles

23. Description of Armenian companies included in EEN partnership opportunity database

24. Business profiles
Code: BOBE Belgian company specialized in the manufacture of pharmaceutical products focusing on women’s health, fertility, family planning and disease prevention is looking for major distributors in order to penetrate new markets. Code: A Romanian IT company supports the full project lifecycle, from application delivery and testing through to support, hosting and managed services for some of the world's leading financial services, telecommunications, sports and media companies. The company is looking for trade intermediary services or subcontracting/ outsourcing agreement.

25. Technology profiles Reference: TOPL20140714001
A Polish IT company has developed a computer algorithm for optimal operation of the order capacity. The SME is looking for partners or investment to further develop and commercialize their solution. The company would like to sign a license agreement or technical cooperation agreement.
Reference: 12 GB PLF
SME in North East England wants to develop an innovative nursery product for babies and toddlers and seeks manufacturer of natural, organic fabric for use in nursery products with a majority of certified-organic natural fibers (cotton, wool, silk, linen). The SME are looking to establish a license (commercial) agreement or joint further development.

26. Brokerage events
Armenian “Researchers for bioheating solutions” has participated in “Let's connect: business & innovation - Biomass and Energy Efficiency in Buildings Brokerage Event” in February 2014.
Armenian “E-works” IT company has participated in brokerage events within “CEBIT” Conference in Hannover, Germany in March 2014.
The information on “Polagra food” international event has been disseminated among Armenian companies in March In the result 1 Armenian company named “Bee city” has participated in B2B meetings.

27. SME DNC of Armenia has supported the Italian EEN partners from Milan “EEN SIMPLER” for finding a partner for implementation of R&D projects in medical sphere. The Partnership Agreement between Italian “Kos Genetics” company and Armenian “Preventive cardiology center” has been signed in December 2010.
The visit of Spanish company to Armenia (which is interested in establishment of company in Armenia) has been organized within the framework of cooperation with Chamber of commerce and Industry of Toledo.
Within the cooperation framework with “Business Innovation Centre of Trento”, the SME DNC of Armenia has supported the Armenian IT company to find correspondent partner. As a result the Partnership Agreement between Italian “Editel” and Armenian “E-works” IT companies has been signed in December 2010.

28. Network data
200+
Armenian profiles of Armenian SMEs have been inserted in the Network database
600+
Expressions of interests have been received
450+
Expressions of interests have been sent
3000+
Companies periodically are receiving cooperation offers and other informative materials 12
Partnership Agreements have been signed

29. Cooperation with stakeholders
Union of Manufacturers and Businessmen (Employers) of Armenia (UMB(E)A)
Union of IT enterprises
Republican Union of Employers of Armenia (RUEA)
Ministry of Economy of the RA
EU Advisory Group to RA
Chamber of Commerce and Industry of the RA

30. Thank You For Your Attention Deputy Executive Director
Karen Gevorgyan
Deputy Executive Director
Fund “Small and Medium Entrepreneurship
Development National Center of Armenia”
Tel.: (374 10)
Fax: (374 10)
URL: