Innovative business environment in Sevan with the EU support | EUNewsletter

Innovative business environment in Sevan with the EU support

6 March 2018
Sevan

The city of Sevan has received a grant through the “Mayors for Economic Growth” (M4EG) multiannual initiative. The city of Sevan, in Gegharkunik marz, joined the EU’s M4EG initiative in 2017 and was recognized as the first and still the only winning city in Armenia as a result of the announced call.

The “EU4Sevan: SME platform for Business Development and Innovation” pilot project will be implemented in Sevan in 2018-2020 (24 months), which will create the fundamental preconditions required to improve the business environment, boost economic development, and create new jobs. The project supports to quickly transform Sevan into a financially independent, economically sustainable, and socially attractive community.

On 1 March, the EU Ambassador to Armenia, Piotr Świtalski, the Armenian Minister of Territorial Administration and Development, Davit Lokyan, the Governor of Gegharkunik marz, Karen Botoyan, and the Mayor of Sevan, Sargis Muradyan, attended the project launch event.

ARS_9911Ambassador Świtalski congratulated the Mayor of Sevan for the city’s winning proposal: ‘The municipality has presented us with a wonderful project and I am very happy that Sevan has become the first project beneficiary. Promoting economic development in Armenia is a priority for the European Union, and it is an important factor to start this development in the regions. The economic development of any country is related to the equal development of the regions. Small- and medium-sized enterprises are an engine of economic growth. For example, in the European Union, SMEs provide 70-80% of countries’ GDP contribution. According to available data, in Armenia, this figure is too low at around 30%. Therefore, any initiative that helps SMEs, especially young entrepreneurs, is a very important factor in marz development. Start-up businessmen and SMEs can rely on EU support’.

The project will be implemented by the Sevan Municipality and the Gegharkunik Chamber of Commerce and Industry. The project has a total budget of €538,000, 90% of which is financed by the European Union. It will establish an innovative business centre in Sevan with two years of implementation, which will be a hub and provide physical infrastructure for SMEs of the marz, such as 15 co-working spaces where entrepreneurs can use services, furniture and equipment for their everyday work. A conference hall and working meeting room for businessmen will also be built, a first for Sevan. The project will also help to establish business contacts, and provide consulting and technical assistance.

ARS_9945The RA Minister of Territorial Administration and Development David Lokyan stressed the importance of the EU’s assistance: ‘I am happy and grateful not just when the European Union provides material support, but even more when the EU shares the best practice with Armenia. In our country, it is extremely important to have such a centre which will provide everyday assistance, knowledge, and human research capital to the newly founded small-sized businesses. This is a large-scale project which can become an incubator and a pillar for the marz to generate new ideas’.

In parallel with business support, the project will also provide training and assistance to job seekers, especially to young people, women and persons with disabilities. As a result of this training, they will be able to get jobs in beneficiary SMEs as qualified professionals.

Innovative business environment in Sevan with the EU support

The city of Sevan has received a grant through the “Mayors for Economic Growth” (M4EG) multiannual initiative. The city of Sevan, in Gegharkunik marz, joined the EU's M4EG initiative in 2017 and was recognized as the first and still the only winning city in Armenia as a result of the announced call.

The “EU4Sevan: SME platform for Business Development and Innovation” pilot project will be implemented in Sevan in 2018-2020 (24 months), which will create the fundamental preconditions required to improve the business environment, boost economic development, and create new jobs. The project supports to quickly transform Sevan into a financially independent, economically sustainable, and socially attractive community.

On 1 March, the EU Ambassador to Armenia, Piotr Świtalski, the Armenian Minister of Territorial Administration and Development, Davit Lokyan, the Governor of Gegharkunik marz, Karen Botoyan, and the Mayor of Sevan, Sargis Muradyan, attended the project launch event.

ARS_9911Ambassador Świtalski congratulated the Mayor of Sevan for the city’s winning proposal: ‘The municipality has presented us with a wonderful project and I am very happy that Sevan has become the first project beneficiary. Promoting economic development in Armenia is a priority for the European Union, and it is an important factor to start this development in the regions. The economic development of any country is related to the equal development of the regions. Small- and medium-sized enterprises are an engine of economic growth. For example, in the European Union, SMEs provide 70-80% of countries’ GDP contribution. According to available data, in Armenia, this figure is too low at around 30%. Therefore, any initiative that helps SMEs, especially young entrepreneurs, is a very important factor in marz development. Start-up businessmen and SMEs can rely on EU support’.

The project will be implemented by the Sevan Municipality and the Gegharkunik Chamber of Commerce and Industry. The project has a total budget of €538,000, 90% of which is financed by the European Union. It will establish an innovative business centre in Sevan with two years of implementation, which will be a hub and provide physical infrastructure for SMEs of the marz, such as 15 co-working spaces where entrepreneurs can use services, furniture and equipment for their everyday work. A conference hall and working meeting room for businessmen will also be built, a first for Sevan. The project will also help to establish business contacts, and provide consulting and technical assistance.

ARS_9945The RA Minister of Territorial Administration and Development David Lokyan stressed the importance of the EU’s assistance: ‘I am happy and grateful not just when the European Union provides material support, but even more when the EU shares the best practice with Armenia. In our country, it is extremely important to have such a centre which will provide everyday assistance, knowledge, and human research capital to the newly founded small-sized businesses. This is a large-scale project which can become an incubator and a pillar for the marz to generate new ideas’.

In parallel with business support, the project will also provide training and assistance to job seekers, especially to young people, women and persons with disabilities. As a result of this training, they will be able to get jobs in beneficiary SMEs as qualified professionals.