Why are SMEs closing one after another? (video)
One after another different enterprises stop their activities. Representatives of small businesses take this step, as they are not able to compete with large businesses. The fight between large and small enterprises have become evident especially in the last year. As a result, during the same period, several thousands of small and medium-sized enterprises have been closed. “They are not able to compete as there is unfair competition, unfair inspections, they don’t have finances, aren’t modern, they are ignorant, they don’t know laws, they lack resources, they are not able to export,” says President of the Republican Union of Employers Gagik Makaryan. About 53% of closing companies are from trade sector. Gagik Makaryan doesn’t consider it to be accidental: “There is monopolization in the trade sector, due to the supermarkets many markets closed, street trade was banned and to add the inspections.” The polls by the Republican Union of Employers among the SMEs have shown that this tendency will continue. Only 6% of companies have mentioned that their condition is good, 12.5% noted- satisfactory and no company has been in excellent condition, “If we take out that 19%, 81% is in unsatisfactory condition, and it means high risk for them, as sooner or later they will go bankrupt, will be closed and dissolved,” notes Gagik Makaryan. Yet Mr. Makaryan thinks that there is healthy competition in the telecommunications sector but it is very tense. The information, that UCOM Company has purchased Orange Armenia Company, isn’t surprising for him: “Right PR is very important, in case of Orange bad management is the reason…pedantry, there is a tendency to remain in place and I’m not surprised that another company will purchase.”
