Tuesday, April 10 2018 17:58

ArmInfo. Over the past five  years, the situation with small and medium-sized businesses in  Armenia has remained virtually unchanged, the share of SMEs in the  GDP structure is about 30% over the years, "Vazgen Safaryan, chairman  of the Union of Manufacturers and Businessmen of Armenia responded to  a question from ArmInfo correspondent. The main reason for this  situation of small and medium-sized businesses was the head of the  Union, the lack of proper development of industrial production.

Nevertheless, at a press conference on April 10, Safaryan noted that  SMEs provide 5-6% of tax revenues to the state treasury, whereas  years earlier this indicator was at the level of 2-3%. Of the  registered 70 thousand small and medium-sized businesses, the number  of which decreases every year, about 60% are engaged in trade, he  said. In this vein, he stressed that according to the data of 2017,  465 SMEs were declared bankrupt. "The fact is that the work of large  retail chains is hitting small retail outlets, kiosks. For example,  in Russia, large supermarkets are located at sufficiently large  distances from residential complexes, thereby enabling small  commercial sites to develop their activities. And from this point of  view, the situation is not so favorable for us, "he stressed. "I hold  the opinion that the state needs to put emphasis on the development  of industry, in particular, large industrial enterprises such as the  plants Nairit, Vanadzor Chemical Industry and several others. If  these enterprises functioned, dozens of small and medium-sized  counterparties would form around them, as a service infrastructure  and suppliers. However, considering today's realities, the  overwhelming majority of SMEs are involved in the trade sphere,  "Safaryan said.

In this vein, the head of the Union referred to Germany, where, given  the level of industrial development, the share of SMEs in GDP is more  than 50%.

On ArmInfo's comment on the continued growth of the industrial sector  in Armenia, Safaryan noted that industry in Armenia is growing mainly  due to exports of mining and metallurgy, in particular, copper-  molybdenum concentrate. "If we did not export as much concentrate,  and organized the foundry on the spot and received pure and refined  copper, then it would serve as a raw material for the organization of  internal cooperation in terms of the development of cable, electrical  and other industries. In addition to internal cooperation, it would  be possible to develop an external one, in particular, with the  Russian Federation.  Since with industrial Russia we have the same  production culture. Therefore, it will be much more convenient and  more profitable for us to integrate into the Russian economy, or  organize joint ventures, restore old ties, create new ones. All these  ways can be laid by the Ministry of Industry and Foreign Trade, the  need for the creation of which we have spoken and are constantly  speaking. If you imagine the economy as a person in a figurative way,  then agriculture is legs, industry is the spine, hands are high  technologies, the head is scientific knowledge. And when there are  problems with the spine, the person is known to be weak and  vulnerable, "said the head of the Union.  In addition, according to  Safaryan, the development of SMEs is hampered by constantly changing  tax legislation. Entrepreneurs, according to the expert, lack  confidence in the authorities and vision of business development.  "The conditions for the functioning of SMEs are changing too often,  amendments to legislation are constantly being adopted. If those  responsible for the tax policy have officially stated that a  particular point of the law will be unchanged for at least 10 years,  then the entrepreneur would develop his business without any fear,  "he said.