Փմձ Ոլորտի Զարգացման Հիմնախնդիրները Հայաստանի Հանրապետությունում // Issues of Sme Sector Development in the Republic of Armenia

This research focuses on development issues in the SME (small and medium-sized enterprise) sector in the Republic of Armenia, a highly relevant topic for several reasons. First and foremost, SMEs form the backbone of Armenia’s economy, providing a significant level of employment and contributing to GDP formation. Therefore, the healthy development of this sector directly affects the country’s socio-economic situation. Against the background of the COVID-19 pandemic, regional conflicts, and global economic instability, ensuring the resilience of SMEs has become more important than ever. These crisis situations revealed the vulnerable aspects of the sector and emphasized the need for systemic reforms. For Armenia, as a member of the EAEU and other international structures, improving the competitiveness of SMEs has strategic importance. The presence of Armenian SMEs in international markets can contribute to the growth of exports of goods and services and ensure the country’s economic security. From the perspective of mitigating territorial development disparities and reducing poverty levels in the regions, the development of SMEs in the provinces has important social significance, which further emphasizes the relevance of the topic. Among the main problems facing SMEs are limited access to financing and high interest rates. Banks often avoid lending to small businesses, considering them risky. The complex tax system and administration are an additional burden for SMEs. Frequent legislative changes and bureaucratic processes limit opportunities for entrepreneurs. Human capital issues are also significant—lack of qualified specialists, emigration, and mismatch between professional education and labor market needs. Technological backwardness and low levels of innovation implementation hinder competitiveness. At the same time, market limitations and export complications make development difficult. To solve these problems, government support programs, diversification of financial instruments, simplification of administration, educational reforms, encouragement of innovation, and expansion of export opportunities are necessary.