#1Micro Small Medium SMALL & MEDIUM BUSINESS IN ARMENIA ^^MERIA MANAGEMENT ADVISORY March, 2020#2INTRODUCTION Λ Λ continues THE SERIES OF RESEARCHES in various industries of Armenian economy. This paper covers THE CURRENT STATE & FUTURE DEVELOPMENTS OF SME SECTOR - one of the major sectors of Armenian economy. SMES 2013 SMEs 2019 It is the SECOND in series of comprehensive SME sector researches conducted by AMERIA CJSC. SME 1 2#3Λ SOURCES OF INFORMATION ✓ Analysis of available databases and reports (Armstat, State Revenue Committee (SRC), etc.) ✓ Survey among SMEs Field works of the survey were conducted in MARCH-MAY 2019. The survey was conducted in 5 MAJOR CITIES of Armenia - Yerevan, Vanadzor, Gyumri, Armavir & Vagharshapat, & COVERED 729 SMEs. *Standard error for the data presented in the report is 3.6% for 95% confidence interval. Survey RESULTS were REWEIGHED. 999 |||| 3#4Λ CONTENTS OF THE RESEARCH SME sector definitions and Overview of their application Armenia Current state SME sector in and Investments and innovation SMEs and the banking sector Professional services Notes and annexes expectations ✰ Differences in application of the definition Definitions used by banks Definitions used in regional countries Business environment Changes compared to 2013 Foreign Trade Expectations ܀ Other ܀ Key factors for choosing a bank Use of banking products Other ܀ Quantitative assessment of SMEs Comprehensive overview of the sector Investments in 2018 2018 investments in innovation New projects and business expansion plans New project funding sources Companies using professional services Legal ܀ Management advisory Accounting, marketing, etc. 4#5Λ LEGAL DEFINITION OVERVIEW OF SME SECTOR IN ARMENIA THIS DEFINITION IS NOT SO POPULAR Medium among various authorities, Small INCLUDING STATE Micro Up to 10 employees $ Up to 50 employees Up to 100 M revenue and assets Up to 500 M revenue and assets $ Up to 250 employees M Up to 1500 revenue and 1000 M assets AUTHORITIES instance, SRC, Armstat). (for MOST BANKS DO NOT USE THIS DEFINITION and give preference to their own classification which is based on of broader definition according to IFRS. SME 5#6NUMBER OF SMES OVERVIEW OF SME SECTOR IN ARMENIA "Existing" or "Newly registered" 144,400 IE (individual entrepreneur), LLC, CJSC, OJSC, PC (production cooperative) Physical entity, NGO, SNCO, other entities, etc 98,250 46,150 SME Large or from K*, O*, R.92* sector Non-operating *NACE classification Source: Armstat, SRC, Ameria CJSC Operating SME 67,000 Share of OPERATING SMES in the total number of taxpayers (including NPOs and individual taxpayers) is 46-47%. At the beginning of 2018 there were ~67,000 OPERATING SMEs. Compared to 2013, THE NUMBER OF SMES GREW ALMOST BY 4 K. 6#7Λ Sector Structure OVERVIEW OF SME SECTOR IN ARMENIA SME Sector Structure 5% 1% 67,000 ■ Micro ■ Small Medium Source: Armstat Role of SMEs in independent economic entities of Number of employees a commercial nature 66% Turnover 62% Gross value added (GVA) 60% 94% If we finalize Armstat information by adding quantitative assessments of SMEs, we will have the following results: 62,990 micro (93.8%), 3,447 small (5.1%) ✰ 693 - medium (~1.0%) 7#8OVERVIEW OF SME SECTOR IN ARMENIA Number of Employees Average number of employees working in SME sector per regions Employees on average 1 5 0 0 5000 10000 15000 20000 25000 Number of SMEs Source: Armstat Yerevan, 3.674 30000 35000 Average number of employees per SME size MICRO-1.1 SMALL-19 ✰MEDIUM-97 Average number of employees is 3.7 in YEREVAN-BASED SMEs and 1-2 REGIONAL SMEs. Though most of SMEs operate in TRADE SECTOR, AVERAGE NUMBER OF EMPLOYEES IN THESE SMES IS THE LOWEST (due to the number of micro organizations). 8#9OVERVIEW OF SME SECTOR IN ARMENIA Λ Turnover per Regions Turnover per business and per employee (per regions, Per employee 50 45 40 35 30 20 15 о 10 5 million) Armavir Yerevan H In 2017 turnover amounted to AMD 3.5T (AMD 58.8M PER SME or AMD 20.8 M PER EMPLOYEE on average) Yerevan has a considerable share in total turnover, which is due to the number of enterprises. In 2017 GVA generated by considered SMEs MADE 39.2% OF THE TURNOVER. 0 100 Per SME 200 9#10Λ Labor Productivity OVERVIEW OF SME SECTOR IN ARMENIA Labor productivity of SME groups and large enterprises per 25 20 15 10 5 0 types of activity (GVA/ number of employees, million AMD) H EN I S.95 ICT H Mining M CH B J - SME - - Large Trade --- L G El. gas supply- GVA per employee was AMD 8.2 MILLION and that of LARGE ENTERPRISES-AMD 10.7 MILLION. SMEs of TRADE SECTOR (G) are more productive. The only reason for this are NON-REGISTERED EMPLOYEES, particularly in micro group. ✰ Productivity of large enterprises is much higher in B.MINING and J.CIT SECTORS, where the number of NON- REGISTERED EMPLOYEES IS NOT SO GREAT. 10#112 CURRENT STATE AND EXPECTATIONS#12CURRENT STATE AND EXPECTATIONS Changes in the Business Environment YOY change in the business environment in 2019 (based on 2/2 scale) SMALL AND MEDIUM enterprises reported MODERATE IMPROVEMENT. SMEs engaged in IMPORT complain, while SMEs engaged in EXPORT report slight improvement. 0.08 0.13 Significant improvement Moderate improvement Not changed Moderate impairment -0.66 -0.61 Significant impairment Micro Small Medium Total SMEs 12 Source: 2019 SME research, Ameria CJSC#132▸ Λ CURRENT STATE AND EXPECTATIONS Changes in Business Environment Changes in the business environment per types of activity Real estate C (M) F N H S Trade Significant improvement Moderate improvement Not changed Moderate impairment G SMES ENGAGED IN TRADE SECTOR REPORTED SIGNIFICANT IMPAIRMENT. According to type of activity, COMPANIES ENGAGED IN "REAL ESTATE ACTIVITIES" (L) REPORTED SIGNIFICANT IMPROVEMENT, which is probably due to increase in real estate prices. MORTGAGE LOANS REPORTED 30.8% YOY GROWTH IN 2019. Significant impairment L Real estate activities Source: 2019 SME research, Ameria CJSC G Trade S Other services 13#142 ▸ Λ CURRENT STATE AND EXPECTATIONS Possibilities to Increase Production Volumes Possibility to scale up production volumes while retaining current level 0% (impossible) 1-10% of capital and the staff 11-25% 9%1% 20% 29% 41% 56% ✰ OVER HALF (53%) of SMEs in Armenia OPERATE AT MAXIMUM CAPACITY and are not able to increase production volumes without additional investments. 26-50% 61-% 51-100% 3240 2 times or more! 3% 12% Yerevan Marzes Source: 2019 SME research, Ameria CJSC 14#152▸ Λ Output Growth Expectations CURRENT STATE AND EXPECTATIONS Expectations based on the possibility to scale up production volume (based on -2/2 scale) 0.9 0.3 0.0 0% (Impossible) 1-10% 11-25% Significant increase 1.0 0.9 Moderate increase 26-50% 50%+ Possibility to increase production volumes Source: 2019 SME research, Ameria CJSC Not changed Moderate drop SMEs have LIMITED POSITIVE EXPECTATIONS of output growth for the coming years. Expectations of SMES ARE DIRECTLY LINKED TO THEIR UNUSED CAPACITIES. Significant drop 15#162▸ THIS SECTION COVERS ALSO... 50% ՓՄՁ-ների արտադրության ծավալները ավելացնելու հնարավորությունը կապիտալի և աշխատողների մակարդակը պահպանելու դեպքում ✰ SMES ENGAGED IN FOREIGN TRADE Share of SMEs engaged in import (25.5%) is OVER 4 TIMES HIGHER than that of SMEs engaged in export (6.1%). The INCREASE IN EXPORT VOLUMES of the country during the recent 5 years was DUE TO INCREASE IN EXPORT VOLUME PER EXPORTER ONLY, and not due to growth of the number of exporters (it remained almost flat). ՓՄՁ-ների կշիռը 40% 10% 5396 • % (Հնարավոր չէ) Use of Revenue ܀ Micro enterprises distribute their revenue among OWNERS, while medium enterprises invest it into BUSINESS EXPANSION. ✰ Currencies Used The greater the SME revenue, the lower the share of AMD (up to 10M - 97%). Արտհանող և ներմուծող ՓՄՁ-ները ըստ չափերի (քանակական) 1-1 f Արտահանման ծավալների փոփոխությունը և ՓՄՁ ների մեջ արտահանմամբ զբաղվողները 2013-2018թթ. 1696 Գործունեության արդյունքի հետ կապված ՓՄՁ-ների սպասումները առաջիկա 1-2 տարիների ընթացքում, ըստ ոլորտի (2-ից 2 սանդղակով) 3296 1095 616 1000 Գործունեության արդյունքի հետ կա Ձեռնարկությունների կշիռը, որոնք գործում են կարողությունների առավելագույն օգտագործմամբ (EU և Հայաստան) (չեն կարող ավելացևել արտադրությունը առանց հավելյալ կապիտալի /աշխատողների/ արդյունավետության բարձրացման) 80% 7796 56% 53% Austria Estonia nbourg enmark U co Auebung Czech Republic Romania Slovenia UK Netherlands Portugal Spain Belgium Cyprus Italy Poland Finland Slovakia Lithuania Latvia 30% 16 216 <t#17INVESTMENTS AND INNOVATION 2018 investments Per size Per type Comparison with 2012 * 2018 investments in innovation Per type Comparison with 2012 New projects and business expansion plans New project funding sources INVESTMENT#183▸ Λ INVESTMENTS AND INNOVATION SMEs which Invested into Business Expansion 100% 90% Share of SMEs which invested into business expansion, 2018 VS. 2012 87% 80% 70% 65% 60% 61% 60% 50% 40% 43% 37% 30% 20% 10% 0% Micro Source: 2019 SME research, Ameria CJSC - 2018 Small - 2012 Medium INVESTMENT In 2018 39% of SMES INVESTED INTO BUSINESS EXPANSION. Share of SMEs which invested into business expansion expansion DECREASED COMPARED TO 2012, due to the number of micro enterprises. Along with the share SMEs investing into business expansion the QUALITY (character) OF INVESTMENTS dropped either. In 2013 - MACHINERY AND EQUIPMENT, NOW-WORKING CAPITAL. 18#193▸ Λ INVESTMENTS AND INNOVATION SMEs which Invested into Innovation 70% 60% 50% 40% 43% 30% 37% 28% 24% 20% 10% 0% Micro Small - 2018 Source: SME Research in 2019, SME research in 2013, Ameria CJSC - 2012 60% ↓ 54% Medium INVESTMENT The decline in this type of investments is perhaps due to THE DECLINE IN FOREIGN DIRECT INVESTMENTS. ✰ Apart from creating financial possibilities, foreign direct investments are known to be a technology transfer tool and bring innovation to the economy. 19#203 Λ INVESTMENTS AND INNOVATION Investments per Areas 3% Total 13% 18% 17% 39% 28% 44% Medium 7% 42% ■Stock of goods Purchase of machinery and equipment ■Capital repair %6 Staff training Purchase of buildings and constructions Databases/other non-material assets 2012 17% 19% 24% 19% Small %6 Micro 12% 18% 60% 50% 40% 30% 20% 10% 0% (%, in the given group) INVESTMENT SMEs in Armenia MORE OFTEN make SHORT- TERM INVESTMENTS. Compared to 2012, SMEs focus mainly on short-term investments (like WORKING CAPITAL and REPAIR) rather than long-term investments in BUILDINGS AND CONSTRUCTIONS and non-material assets. Source: SME Research in 2019, SME research in 2013, Ameria CJSC 20#213 Λ INVESTMENTS AND INNOVATION SMEs which Invested into Innovation Share of SMEs which invested into business expansion in 2018, per cities (%, in the given group) Regional cities Investments in innovation per area -Yerevan Marketing 14% 13% -Regional cities 12% 10% 8% Yerevan 27% 16% Unique products for external market Management 6% Manufacturin 10% g 5% 3% 2% 4% 3% 6% Unique products for domestic market Innovations in production and marketing Source: 2019 SME research, Ameria CJSC particularly low in the regions. INVESTMENT areas are 21#223 Λ Investments in Innovation per Areas In 2018 share of SMEs investing in innovation decreased compared to 2012, pp Marketing Manufacturing -1. INVESTMENTS AND INNOVATION -4.7 EQUITY INVESTMENTS Vast majority of SMES ENGAGED IN FOREIGN TRADE INVEST IN INNOVATION which is perhaps triggered by the necessity to sustain competition on external market. Unique products for domestic market Management Unique products for foreign market 1.0 -0.3 -3.4 Source: SME Research in 2019, SME research in 2013, Ameria CJSC 2018 ☐ 2012 22#2319% 21% 16% 28% 27% 3▸ Λ INVESTMENTS AND INNOVATION New Projects and Business Expansion Plans for 1-3 years Per sectors JICT Construction Processing industry Professional activities HORECA 23% 20% Trade Other services Source: SME Research in 2019, SME research in 2013, Ameria CJSC %77 36% ■Are planning to cooperate Are likely to cooperate Are not planning to cooperate Per size, 2013 VS. 2019 2013 41% Micro 2019 34% INVESTMENT 42% 36% 2013 54% Medium Small 29% 2019 44% 21% 2013 2019 72% 75% 21% 8% 35% of SMEs have new projects and business expansion plans for the next 3 years. SHARE of micro and small enterprises WHICH HAVE BUSINESS EXPANSION PLANS HAS DECREASED compared to 2013. 23#243 Λ Volume of investments ܀ Impact of investments in innovation New projects and business expansion plans Estimation of their volume Other ܀ THIS SECTION COVERS ALSO... Նոր նախագծերի ֆինանսավորման միջոցները, ըստ «Գերփոք| ր ՓՄՁ չափերի* Հնչած պատասխանը և տվյալ խմբի ՓՄՁ-ների քանակի հարաբերությունը, % 9% 60% SOM 40% 3014 30 34% 25% 2018 investments in innovation and growth expectations for the coming years J A ABILE A A P A DOC ALL I A M || AVA " Pa R A HL A MESSINATRA A 24 INVESTMENT#25+ ▸▸ SMES AND THE BANKING SECTOR Share of SMES USING banking products Assessment of COOPERATION WITH BANKS Key FACTORS FOR CHOOSING a bank Branch or distance banking Bank selection criteria for getting a loan 1st choice bank to apply for a loan ✰ USE OF BANKING PRODUCTS Term, interest rate, amount and currency LIKELIHOOD of using BANKING PRODUCTS during the next 2 years Analysis of data about SME LOANS in Armenia per banks BANK#26Source: 2019 SME research, Ameria CJSC Λ Assessment of Cooperation with Banks 86% of all SMEs mentioned about cooperation with banks (use of a certain a banking product) DURING THE RECENT 3 YEARS. There is NO SIGNIFICANT CHANGE in the share of SMEs using banking products compared to 2013. Per size Micro Small COOPERATION WITH BANKS Per cities 00% 95% 86% 87% 87% 79% 81% 86% The LARGER THE SME, the more it is likely to COOPERATE WITH BANKS. Medium Yerevan 26 Gyumri Vanadzor Armavir/Vaghar shapat BANK#27Λ Assessment of Cooperation with Banks Assessment of cooperation with banks, 2019 vs. 2013 Positive COOPERATION WITH BANKS BANK → SMES ASSESS the cooperation with banks mostly POSITIVE. Compared to 2013, in 2019 companies are MORE SATISFIED with cooperation with the banks. Negative Micro Small Medium - 2019 - 2013 Source: 2019 SME research, Ameria CJSC 27 27#28Λ Key Factors for Choosing a Bank Service rate 2.5 Service quality 2.5 Tariffs 2.4 Staff proficiency 2.4 Convenient location, availability of branch (close to home, workplace, etc.) Diversity of services 2.2 2.1 Cash-in ATM 2.0 Separate servicing of legal and physical entity clients in branches Personal client manager 1.2 Bank image/brand 1.2 Source: 2019 SME research, Ameria CJSC 1.8 COOPERATION WITH BANKS BANK AS IN 2013, SERVICE RATE STILL RANKS FIRST for SMEs among all other factors. SMEs in GYUMRI seem to be THE PICKIEST, especially in terms of tariffs and availability of cash-in ATMs. 28#29Λ Services Used Loan/Line of credit/Overdraft Need for banking services 40% 45.5% 20% 30,500 COOPERATION WITH BANKS Key factors Interest rate Simple terms Speed 41% 27% 0% Loan/Line of credit/Overdraft Money transfers Payment cards FX transactions Bank guarantees Leasing LC Factoring Source: 2019 SME research, Ameria CJSC 72% BANK ❖ CREDIT FACILITIES (loan, line of credit, overdraft) ARE THE MOST POPULAR banking products among SMEs. INTEREST RATE is the key factor for choosing a banking product for them. 29#30Λ SME Loan Portfolio SME loans issued by banks, 2011 VS. 2019 Other 52% ~ AMD 900 billion ABB bank 18% Ameria bank 11% Acba bank 10% Ardshinbank 9% COOPERATION WITH BANKS SME loans issued by banks, 2011 VS. 2019 2012 2013 ABB 2014 2015 2016 2017 Ameria ACBA BANK 180 160 140 120 100 60 40 20 0 2018 2019 ASHB SME portfolio amounts to ~ AMD 900 billion or USD 1.87 billion. As mentioned above, there IS NO UNIFORM SME DEFINITION in the banking system. Interim Financial Statements of Banks ARMBUSINESSBANK'S SME LOAN PORTFOLIO IS THE LARGEST (AMD 165 BILLION). It has grown dramatically during the recent years. 30#31Λ Collateral Impact secured unsecured % 15.7% 7 17.7% Terms 3.8 2.7 year Amount 3.6 Mln AMD 1.6 Source: 2019 SME research, Ameria CJSC COOPERATION WITH BANKS BANK 15.8% 12.1% 4.2 24.7 3.0 8.3 Majority of loans (56-58%) ARE SECURED. Volume of secured loans is 2.5-3 TIMES GREATER. Term of secured loans is LONGER (1.1-1.2 years on average). Secured loans are subject to LOWER INTEREST RATE. 31#32Λ SMES AND THE BANKING SECTOR Branch Network vs. Distance Banking Yerevan Branch Regions Branch network BANK S Distance banking platforms 55% 45% On average, 6 out of 10 SMEs prefer a developed branch network while only 4 of them prefer DISTANCE BANKING. The GREATER the SMEs, the HIGHER THEIR DEMAND IN DISTANCE BANKING. 80% 20% Source: SME Research in 2019, SME research in 2013, Ameria CJSC 32 32#334 P Λ KEY FACTORS for choosing a bank to get a LOAN FIRST CHOICE BANKS to get a loan USE OF banking PRODUCTS Term, interest rate, amount and currency THIS SECTION COVERS ALSO... LIKELIHOOD of USING banking products during the next 2 years ՓՄՁ վարէ J 71% Ավելի շատ հարմար է շ--իման ամանակ Ինտերնետով կամ հ հնարավորություն ԱՄ լրացուցիչ գումար Ինտերնետի կամ հեղ խափանումը կարո գործարքինգործու 2013 2019 Փոփոխ. 3--- فاس .hiwl սային պետ 0.04 ILI pwly 1 10.1% 16.7% 6.6 Ինտերնետով կամ հե բավականին բարդ է Չենք վստահում ին ստրության պատ • միջավայրին անտ -11- pwby z 11.5% 15.1 % 3.6 11.17 pwly3 10.3% 12.3% 20 71 Ես ինձ հարմար չեմ . 6.0% 8.3% 22 7.9% 7.9% CLI 021 Մաlկ : 3.7% 7.2% 3 0.39 0.15 8.2% 7.0% -1.2 1.0% 6.1% 1 1234 5.6% 5 TIT 4 اسم / ياسم рил ակամա ունկան պարաններո sk E 4 TES 1. i all Բ J Preferred term Analysis of SME LOANS available on the market $ Uphol Lan C-U₂ B/D/E பப்பாயு F-Ch G-U - - մոռադրուի Ա պա աստաայրս տատեսություն 2 1 - Կացության և հանրային սննդի կազմակերպում 1 – Տեղեկատվություն և կապ - Անշարժ գույքի հետ կապված գործունեություն M - Մասնագիտական, գիտական գործուն եություն A-5 - Այլ ծառայություններ Source: SME Research in 2019, SME research in 2013, Ameria CJSC וי 14 18 TTT 27% 20% 17% LLUD 610 430 313 2558 4% 1019 4% 212 5% 142 3% 452 1626 2% 356 1% 0% 2% 161 115 1552 2% 724 3% 160 4% 0% 3029 5% 1290 5% 75 2% 225 5% 225 9% 1 8658 13% 2897 11% 434 10% 217 5% 72 3% 1386 33 33#345 ADVISORY AND OTHER PROFESSIONAL SERVICES SMES USING PROFESSIONAL SERVICES Compared to 2013 LEGAL services ❖ MANAGEMENT advisory and research services ✰ ACCOUNTING, marketing, etc. Preference of getting such services from the main bank#35PROFESSIONAL SERVICES Λ Companies Using Advisory and Other Professional Services SMEs which have resorted to any professional service during the recent 2 years 24% 46% of SMEs have resorted to OUTSOURCING at least once during the recent 2 years, 56% √ 49% by paying AMD 120 K on average. 47% 47% 39% About 13% of SMES HAVE OBTAINED professional services FOR FREE (probably from FRIENDS AND RELATIVES) Micro Small Medium ⚫ 2013 ● 2019 Source: SME Research in 2019, SME research in 2013, Ameria CJSC 35#36Λ ADVISORY AND OTHER PROFESSIONAL SERVICES Use of Professional Services, 2013 VS. 2019 SMEs Using Professional Services, 2013 VS. 2019 Accounting Marketing Contractual relations 13% 9% 6% 35% There was a dramatic increase in the use of ACCOUNTING SERVICES by SME compared to 2013, which is perhaps due to the DROP IN PRICES of such services (AMD 120K in 2013 vs. AMD 100K now). Market research Business plan 4% Management consulting 4% Investment consulting 4% Audit 3% Legal review of activities 3% Representation of interests Source: SME Research in 2019, SME research in 2013, Ameria CJSC 3% 2019 2013 36#37Λ PROFESSIONAL SERVICES Demand of Professional Services in Yerevan and the regions Accounting 27% 30% Marketing 10% 17% Market research 11% 15% Management consulting 7% 12% Legal consulting 6% 1296 Contractual relations 9% 11% Business plan 10% 11% Investment consulting 9% 9% Audit 5% 8% Legal review of activities 19 5% 5% Representation of interests Երևան Մարզերի քաղաքեներ Source: SME Research in 2019, SME research in 2013, Ameria CJSC SMEs expect the DEMAND TO GROW during the next 2 years. The demand in nearly all types of professional services is higher in YEREVAN THAN IN THE REGIONS. Besides accounting services, BUSINESS PLAN WRITING ALSO HAS A HIGHER DEMAND in the regions. 37#38Λ Demand in Management and Research Services PROFESSIONAL SERVICES Cost of services (thous. AMD) vs. other services 34% 36% 24% 25% 19% 9% 11% 13% 15% 14% 10% 11% Micro Small Medium Grand Total Business plan writing General management advisory Market research Source: SME Research in 2019, SME research in 2013, Ameria CJSC Management 600 350 1 000 advisory services are MORE EXPENSIVE than other services. The demand in MARKET RESEARCH is higher, besides it is the most AFFORDABLE among all other services. 38#39Λ 5 * Demand in legal services Demand in accounting/audit services Demand in marketing and other services Preference of getting such services from the main bank Source: SME Research in 2019, SME research in 2013, Ameria CJSC THIS SECTION COVERS ALSO... Նախորդ 2 տարիներին կառավարման և հետազոտական խորհրդատվական ծառայություններից օգտվողները 2013 և 2019 թվականներին Ծառայությունից օգտվողների կշիռը տվյալ խմբի ՓՄՁ-ների մեջ,% Գերփոքր 4.3% 4.9% Շուկայի հետազոտություն Փոքր 8.9% Շուկայի հետ Միջին 1: Շու - . և լու: կայր]: Կառավարման և հետազոտական խորհրդատվական ծառայությունների կարիքները առաջիկա 2 տարվա համար, ըստ ՓՄՁ չափի Ծառայության կարիքը ունեցողների կշիռը տվյալ խմբի ՓՄՁ-ների մեջ,% Հիմնական սպասարկող բանկի կողմից մասնագիտական ծառայություններ տրամադրելու դեպքում դրանցից օգտվող ՓՄՁ ների կշիռը՝ Մեկ ռեսպոնդենտը կարող է տալ առավելագույնը 3 պատասխան mmppačil skenk meni ck ala po kapljaju jaqal մապատախանու eki BILIT 4-4 Երևան Մարզերի քաղաքներ = T---- վայել 14 որ. 2013 և 2019 qnul 36% հղում 39#405 Λ SUMMARY At the beginning of 2008 the estimated number of SMEs according to the definition specified in the RA law was 67,000. ✰ THE ROLE OF SMES IN THE ECONOMY IS SMALL relative to their quantity. LABOR PRODUCTIVITY OF SMES IS LOWER. THERE IS A MODERATE IMPAIRMENT IN BUSINESS ENVIRONMENT AND OWN ECONOMIC CONDITION compared to the previous year. SMEs have LIMITED POSITIVE EXPECTATIONS about increase in output volumes during the coming years. Number of SMES INVESTING IN INNOVATION is lower than that of SMES MAKING TRADITIONAL INVESTMENTS. Compared to 2013, in 2019 SMES ARE MORE SATISFIED WITH COOPERATION WITH THE BANKS. 40#41Λ GEM GEM- Global entrepreneurship monitor The Global Entrepreneurship Monitor (GEM) systematically & measures entrepreneurship rate & its characteristics. In numbers, GEM is: 20 years of data 120,000+ interviews a year 100+ economies 500+ specialists in entrepreneurship research Adult Population Survey (APS) a unique instrument to measure the level & characteristics of entrepreneurial activity ❖ focuses on individuals, assessing attitudes & perceptions towards entrepreneurship ✰ also help to capture information on the "informal" economy National Expert Survey (NES) ✰ expert judgements to evaluate specific national conditions assesses various Entrepreneurial Framework Conditions as well as some other topics related to entrepreneurship Globally 54 countries 129,345 adults Adult Population Survey (APS) 2,315 experts National Expert Survey (NES) Global Entrepreneurship Monitor 2019/2020 Global Report GEM First time in Armenia March 2020 Data collection: April-July 2019 Ameria 2000 adults Adult Population Survey (APS) 40 experts National Expert Survey (NES) National report: April 2020 41#42Λ GEM Rank of Armenia by some indicators among 50* countries GEM- Armenia National Report 1 25 50 5 7 23 38 1 27 25 50 Nascent Early-stage entrepreneurship Entrepreneurial rate Activity Established Business Ownership Employee National Entrepreneurial Entrepreneurship Activity Context Index * The study discusses also: The SOCIAL and CULTURAL Foundations of Entrepreneurship ❖ MOTIVATIONS and ASPIRATIONS: Why Do People Start or Run a Business? INFORMAL INVESTMENT EXITING a Business (positive and negative purposes) *the number of NES survey is 54 INTERESTING FINDING in GEM Armenia national report: Armenia is 3rd with % of adults agreeing that other people think that they are highly innovative. 7.9% of population has recently provided funds for a new business started by someone else (14th out of 50). The share of positive reasons to exit a business in Armenia (15%) is among the lowest indicators for 50 GEM APS countries (41th out of 50). "make a difference in the world" was a motivation for only 18.4% of those how started a business in Armenia. This indicator is lower for only 3 countries out of 50 (Italy, Republic of Korea, Madagascar). 42#43GEM GEM- Armenia National Report Content of the national report 1. Introduction to GEM 2. The Social & Cultural Foundations of Entrepreneurship 3. The Entrepreneurial Activity In Armenia 4. Motivations & Aspirations: Why Do People Start or Run a Business? 5. Informal Investments 6. Exiting a Business 7. The Entrepreneurship Context GEM 2019/2020 Global Report here: 43#44THANK YOU! QUESTIONS? Գերփոքր Միջին Փոքր