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.
