European Union Office in Kosovo 
European Union Special Representative in Kosovo

EU Supports Projects Providing Advisory Services and Funding to SMEs in Armenia

18/01/2019 - 08:39
Private Sector Development

The EU-funded Small and Medium-sized Enterprise (SME) Finance and Advice Facility implemented by European Bank for Reconstruction and Development in Armenia is developing the private sector of Armenia through advisory and improved access to finance for local SMEs.

The EU-funded Small and Medium-sized Enterprise (SME) Finance and Advice Facility implemented by European Bank for Reconstruction and Development in Armenia is developing the private sector of Armenia through advisory and improved access to finance for local SMEs.

Facts & Figures

Implementing organisations in Armenia: European Bank for Reconstruction and Development (EBRD)

CRIS number: 4724269

Duration:  4 years | June 2017 – July 2021

Location: Yerevan | Republic of Armenia

Objectives

  • Connect SMEs with qualified local and international advisers and improve their access to finance;
  • Address the lack of availability of primarily private equity and mezzanine capital financing in Armenia;
  • Improve the capacity of Armenian SMEs to understand and attract equity and other forms of financing;
  • Build local equity investment management capacity.

Results

  • The average turnover of the supported business has grown by 50%;
  • The productivity and the amount of workplaces have grown by about 25%;
  • More than 130 million euros in financing obtained and circa 100 SMEs supported annually.

Testimony

“Usually business owners come to us, present the issues they have and we advise local consultants and international best-practice advisers to work with them to ensure company growth,” says Tigran Aghabekyan, Principal Manager at EBRD. “We also select certain sectors to develop via Sector Development Activity. For example, last year we selected ICT and Healthcare. These were especially relevant for the Armenian market’s growth potential. What’s notable is the companies we work with develop their own innovative products in addition to outsourcing. One of our clients works on Fintech, a booming industry here and abroad.

Some of our clients have achieved remarkable successes. LOOM Weaving, for example, a local producer of knitwear, has been invited to participate in a number of fashion shows, and I know they will grow to become a successful exporting company.”

The founder of Apaga Resort and Yell Extreme Park in Yenokavan, Tigran Chibukhchyan, is one of the clients of EBRD’s SME Finance and Advice Facility. He says:

“In 2015, EBRD helped us restructure and bring to order the financial system of our resort’s restaurant facility. They advised us a consultant from Vink Consulting, who supported us with the optimisation of our software programme to be able to closely monitor our financial flows. Since we had a positive experience, we have applied to EBRD again to be able to train and manage our HR department better.”

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