ECONOMY > ARMENIA
The road to the European market
The economic development www.enpi-info.eu of the European Union’s neighbours is of interest both to those countries and to the EU itself. But business environments and practices in the EU and in its neighboring countries to the east are not the same. An EU-funded project is facilitating investments and economic cooperation between the EU and the countries of the Eastern Partnership, namely Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. Eighty-four partners from the two regions are involved in this three-year project, which began in 2011. The project targets business support organisations and small and medium sized enterprises. The EU Neighbourhood Info Centre sent one of its journalists to see how this support is making a difference to an IT business in Armenia. Text by Aghavni Harutyunyan Pictures by AFP©EU/Neighborhood Info Centre
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YEREVAN – “I used to think an IT company of four to six people was too small to exist in Europe. But once I got in touch with some European partners, I realized that the size of IT companies in Europe is almost the same as in Armenia. And that we share the same problems,” says Alisa Mirumyan, the Founder and Director of Relisoft LTD. Her company has been operating on the Armenian IT market for more than five years, producing geo-information systems, databases and special programs for different business activities. Last year, the company was selected to join the East Invest project, an EU-funded initiative to promote and facilitate investment EU Neighbourhood Info Centre and economic cooperation between the EU and its Eastern Partners. Feature no. 90 Led by Eurochambers, East Invest brings together 84 partners from the This is a series of features on EU, the Eastern Partnership countries and Turkey. The project targets projects funded by the EU Regional Programme, prepared by journalists business support organisations and SMEs, and builds up the ‘East Aland photographers on the ground liance’ by mobilizing business organisations from both the EU and its or the EU Neighbourhood Info Centre. Eastern neighbours to work together and participate in public-private © 2013 EU Neighbourhood Info Centre
EU Neighbourhood Info Centre – Feature no. 90
N The exterior of one of the buildings of the Chamber of Commerce and Industry of the Republic of Armenia in Yerevan.
“A number of products produced in Armenia already have barcodes, but when you check them, you find out that they contain information already available on the labels. So a lot still needs to be done before European standards are applicable in Armenia…”
The road to the European market
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dialogue on regulations that directly affect them. The project encourages the exchange of experience and successful practice, as well as connections between companies from the EU and its Eastern Neighbourhood, ultimately aiming to generate business cooperation agreements as well as improving standards and promoting trade, technology transfer, and investments. At the start of the project, a study was carried out to determine priority sectors for cooperation with the EU. Six were identified – agribusiness, information technology and communication (IT), textiles, tourism, sustainable construction and transport and logistics – and a mapping exercise was carried out to study and provide information on the opportunities for investment in Armenia.
“The study visit to Milan really helped to improve our knowledge and also our practical From trainings to business meetings understanding of Last year, Relisoft was one of 40 organisations selected (out of 200 applications) to doing business in take part in five-day training sessions led by European experts. The training gave par- Europe. It gave us ticipating companies valuable knowledge on different topics, from issues relating to new ideas and has certification for imports to the EU, to funding opportunities. Following on, 20 of those put us in contact 40 organisations were chosen to take part in trade fairs in the EU, either as visitors or with potential exhibitors, depending on their capacity and experience. partners”. Together with a group of other IT companies from EaP countries, Mirumyan was selected to attend the Milan IT Trade Fair. Here she was able to witness how Armenian SMEs put into practice what they had learned at the seminars in Yerevan. She came back with valuable ideas and contacts for her business. “The training sessions in Yerevan generally provided theoretical knowledge,” says Alisa Mirumyan. “We found answers to important questions, but this was limited to a quite theoretical level. The study visit to Milan really helped to improve our knowledge and also our practical understanding of doing business in Europe. It gave us new ideas and has put us in contact with potential partners,” says Mirumyan. Coming back from Milan, Relisoft decided to put into practice some of these ideas and started offering local manufacturers IT solutions for barcodes on their products. “The barcode solution gives the consumer the possibility to obtain more detailed information about the product he is interested in,” explains Alisa Mirumyan. “A number of products produced in Armenia already have barcodes, but when you check them, you find out that they contain information already available on the labels. So a lot still needs to be done before European standards are applicable in Armenia. But it’s a good start, and the battle is half won.”
Certification, financing the business, going international East Invest’s coordinator for Armenia is the Chamber of Commerce and Industry which is also partner of the consortium that implements the project. Vladimir Amiryan, head of its International Collaboration Department, says many SMEs are keen to access the European market, but not all of them have the right knowledge, skills or attitudes. Armenian SMEs create many jobs in the country, says Amiryan, but they operate in a weak investment environment with poor infrastructure, with limited access to finance and few training oppor-
N People at work in the small IT company Relisoft, in Yerevan. Alisa Mirumyan, the director of the company, wears a yellow shirt.
EU Neighbourhood Info Centre – Feature no. 90
“Lots of good ideas emerge when people with the same interests come together”.
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The road to the European market
tunities. This makes it even more difficult for many SMEs to export their products and access EU markets. They lack the proper understanding of issues such as certification, marketing, seeking out potential investors, or customs procedures. This is where the trainings come in, helping companies to clarify some of these aspects, and delivering a clear overview on how to develop business cooperation with European enterprises. Back at work in Yerevan, Alisa Mirumyan looks back on her experience. The training and the networking opportunities offered by the project have enabled her company to start valuable partnerships: “With some IT companies from other Eastern Partnership countries we already have agreements on possible ways of cooperating,” she says, and adds: “Lots of good ideas emerge when people with the same interests come together.”
Stronger business representation and better services for SMEs Since 2012, the Armenian Chamber of Commerce and Industry has also been involved in implementing a ‘Twinning’ component of the East-Invest project, aimed at building capacity at the Chamber’s own Court of Arbitration. Again, this has helped Armenian experts to learn from valuable international experience, during visits organised to the Chambers of Commerce and Industry of Spain, Hungary and Poland with the aim of exchanging experience, identifying areas of cooperation and working on specific matters such as certificates of origin. In addition to organizing the trainings for SMEs and participating in twinnings, the Chamber of Commerce and Industry is co-organizing an Investment Forum in 2013 with support from East Invest, in which investment projects will be presented to potential European investors. Thirty to fifty European companies are expected to attend the forum – “a great opportunity to meet,” says Amiryan.
N Vladimir Amiryan, Head of the International Collaboration Department at the Chamber of Commerce and Industry of the Republic of Armenia, during the interview.
East- Invest - Support to SME sector www.east-invest.eu Supports the economic development and facilitates regional trade through contributing to the improvement of the business environment, with an emphasis on SMEs and networking Participating countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine Timeframe: 2010–2013 Budget: €7 million
Objectives: The project aims to support the economic development of the region and the improvement of its business environment through building up networks between the Eastern partners themselves and between them and the EU, in priority sectors, and by developing mechanisms to encourage the flows of Foreign Direct Investment (FDI). East-Invest also supports Small and Medium size Enterprises (SMEs) in their internationalisation process, improves their networking and facilitates their trade development. To find out more Project website: http://www.east-invest.eu/en/about-east-invest EU Neighbourhood Info Centre – EAST INVEST project fiche http://www.enpi-info.eu/maineast.php?id=315&id_type=10 EU Neighbourhood Info Centre Thematic portal: ECONOMY http://www.enpi-info.eu/themeeast.php?subject=4
EU Neighbourhood Info Centre An ENPI project The EU Neighbourhood Info Centre is an EU-funded Regional Communication project highlighting the partnership between the EU and Neighbouring countries. The project is managed by Action Global Communications.
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