Commitment to Constructive Dialogue

New SME Development Strategy for Armenia

Project title  “New SME Development Strategy for Armenia” 

Coalition title – Armenian Business Coalition

Consortium members – Shirak Chamber of Commerce and Industry (SHAAP), Civic Development and Partnership Foundation (CDPF), Association of Social Enterprises of Armenia (EITI), “Regional Business Center” Business Support NGO, Impact Business Club (AGA), Business Support Office (GIS).

Project duration – 12 months

Project total budget AMD 25 000 000, funding provided by the “Commitment to Constructive Dialogue” project – 22 500 000, applicant’s financial contribution  2 500 000. 

Implementation placeYerevan, Shirak Region  Gyumri, Gegharkunik Region  Gavar, representatives from communities, different state and non-state organisations of other RA marzes will also be involved in the studies related to the problems in the SME sector.  

The “New SME Development Strategy for Armenia” project targets small and medium entrepreneurship (SME) in Armenia, as well as key issues related to a rapidly growing sub-sector of social entrepreneurship (SE), of which:

  1. The absence of a new strategy with realistic and up-to-date approaches to the SME sector development in Armenia,
  2. Mechanisms for the participation of civil society organizations (CSOs) and business associations in the processes in the sector,
  3. The necessity to carry out multifaceted dialogue on the introduction of the institution of business advocate (Business Ombudsman),
  4. Necessity of substantial improvement of the state policy on general education, including the development of business education programs, as well as the development and implementation of modern educational programs.

The goal of the project is to develop and submit to the Government of Armenia a widely debated, well-grounded and partly-tested draft of the new SME sector development strategy 2019-2021, which will be essential for the effective organization of the further development of the SME sector in Armenia and will include all of the above-mentioned issues.

The new SME strategy to be submitted to the Armenian government will be developed through communication and meetings organized within the SME dialogue platform.

Within the framework of the project, a pilot project in Gyumri and Gavar will be used for existing tools (e․g․ BizProtect website) to provide operational solutions to the problems. The results of the pilot project will be presented and discussed at the SME dialogue platform. 

Together with the Ministry of Education and Science of Armenia, a social entrepreneurship education platform will be established to be tested in Gavar, Yerevan and Gyumri, in one secondary, one vocational and one higher education institutions. The results will be discussed at the SME dialogue platform, and proposals for improving the business education policy will be presented.

As a result of the project, the Armenian Business Coalition will be set up to unite the efforts of all CSOs and associations which protect the interests of this sector.

Second project – “Capacity Development of the Armenian Business Coalition”

The “Capacity Building of the Armenian Business Coalition” project is aimed at the capacity development of the Armenian Business Coalition (ABC), established as a result of the first phase of the “New Strategy for the Effective Development of the SME Sector in Armenia” project.

It is anticipated that, as a result, a strong prospective platform will be created to promote the development of the business sector in Armenia. The ABC will play an active role in promoting reforms for improving the business environment in Armenia, assisting in the processes of the currently initiated “Economic revolution,” and of the development of relevant public policies.

ABC will serve as a platform for communication between the society, business sector, the government and other stakeholders and organisations, and will become an active and efficient institution advocating for the rights and further development of the Armenian business sector.