— What has changed in the position of small and medium -sized businesses today?
— Problems in the field of small business practically do not change. The first group of problems is due to the fact that due to unequal competition with large companies, small businesses are not developing, but surviving. To develop, he needs acceptable sources of financing, and loans continue to remain inaccessible due to high interest rates, short terms and the need for expensive collisions. The trouble is that today banks are not interested in lending to small businesses, since it is troublesome and risky for them. They prefer to deal with large companies. I recently studied the price situation in the field of real estate in Armenia and abroad after the crisis. While real estate prices have changed little in other countries, in Armenia they have decreased sharply, especially in the regions. For example, in Shamluga or Akhtala, one square meter of housing costs about $ 10, and the apartment — about two thousand dollars.
Is real estate of such a cost can serve as a pledge? For such a deposit, the bank will issue a loan of $ 800. Which business can be created, much less developed for that kind of money? Recently, we began to actively work with banks in order to find mutually acceptable options for lending to SMEs. Transfers received in Armenia from labor migrants is barely enough to feed their families, nothing is left to develop a business from this source.
One of the serious problems is that our small business does not cooperate with large, as is the case in other countries. In my opinion, this is due to the fact that large business is in parliament and lobbying (legislatively or using existing connections) its interests. He has the ability to function independently and autonomously from small businesses, and large business uses this. In many countries, small business exists thanks to a large one to which it provides its services, for example, supplies materials, performs the functions of an intermediary or some other preparatory work, that is, it frees a large business from the need to solve minor problems. And in our country, a large business itself creates all the necessary structures. This is the desire for independence from anyone can even be called a national line. Small business could make it easier for a large life if he delegated some insignificant functions to him, but we don’t understand this yet.
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I have to note that state purchases do not stimulate the development of small businesses. And they could serve this goal if they were transparent and gave priority to the national manufacturer. In our country, it is written in the law that it is possible to give preference to a local manufacturer only ceteris paribus. All of the above problems led to the fact that small business is developing with great difficulty. And if you also add different inspections to this, voluntarist approaches, often manifested by local self -government bodies, this explains the intimidation of small business, its closeness and the desire to go into the shadows.
