Head of Republican Union of Employers advocates for special fund to launch small and mid-sized enterprises

ArmInfo. SMEs account for up to 28% of GDP. During the past years, this indicator did not exceed 30%, with tax revenues of the budget accounting for some 8%-10%, Gagik Makaryan, economist, the head of the Republican Union of Employers told ArmInfo.

He said mid-size enterprises must have a tangible part in GDP, but in Armenia, these figures are at least strange.  "In our country, there are 56,000 micro-businesses, 20,000 small businesses and just 550 mid-size businesses," the economist said adding that his Union sent an official letter to the Government with a range of proposals including for SME development.  Among others, the Union suggests establishment of a special fund of $100 million to activate up to 70 new 

SMEs with 100-150 new jobs at each enterprise. Gagik Makaryan says the Fund will be implementing strategic management, financial audit and key staff appointments. "Such fund may become an engine of a new industry in Armenia," he said.

Giving a generally positive assessment to the new Cabinet, Gagik Makaryan said the economy of Armenia may see up to 4% growth this year and up to 10% growth in a 1.5 years.