The EBRD BAS Programme for Armenia has received excellent acclaim by local entrepreneurs, consulting companies, business service providers, professional associations and other donor initiatives.

Troughout 2003-2007 over 700 enterprises have been visited by the BAS team and over 600 project applications assessed.

As at 01 June 2007, BAS Programme Armenia has undertaken 382 consultancy projects with 214 beneficiary enterprises and 69 consulting companies utilizing EUR 1.35 million. Furthermore, 16 fully-funded non-conventional projects - pilot projects, workshops, trainings, conferences, etc. - have been implemented utilizing EUR 161,000.

BAS Armenia has been awarded diplomas of recognition by the Union of Manufacturers and Businessmen for "the assistance to development of SMEs in Armenia" (2004) and the Chamber of Commerce and Industry for the "significant support to regional enterprises" (2006).

The main objective of the BAS Programme is to help SMEs improve operations, enter new markets and gain access to financing so that they become viable businesses and maximize opportunities for growth.

Almost one third of committed projects (30%) are aimed at improving market performance including business advice on market analysis and marketing, development planning, feasibility studies, partner search. This fact is indicative of the current development stage of the Armenian economy as a whole. Operating in a competitive environment local SMEs have to invest significant efforts in improving their marketing strategy as well as constantly search for viable investment opportunities and new partners.

The projects aimed at improving management effectiveness are the second most popular in BAS Programme support - 29%. A great number of the companies that have survived and managed to grow over the last few years acknowledge that they need advice on how to improve their organization to be able to deal with the challenges of further growth. Greater employee numbers and increased output complicates the management and supervision of resources, hence imposing the need for introducing computerized financial/management information systems.

The high interest in quality management systems and certification (15% of BAS Armenia projects) is motivated by pressure for local companies to seek new markets in countries where product standards certification is expected and to comply with the requirements of customers, partners and suppliers. At the same time, SMEs that implement quality systems are driven by the need to improve their organizational structures and reassure clients of their ability to consistently provide a high quality product/service. While initially all QMS related projects were focused on basic ISO certification, during 2004-2005 this was enlarged to cover GMP and HACCP elements; 2006 showed the beginning for health/safety and environmental regulations.

Cost reduction studies make up the forth largest group of projects - 12% of the total. Obsolete and depreciated production facilities owned by SMEs are low in efficiency and hence do not generate appropriate return on assets. BAS projects on automation of manufacturing systems, optimization and engineering solutions have been targeted at increasing operational efficiency and turnover.

The mix of projects in various industry sectors shows a wide spread. In cases where there is a strong demand in a particular sector, this is usually in line with the relative number of companies in this sector. There is a good proportion in the service/trade sector, in which a lot of new SMEs are emerging.

Manufacturing companies comprise 42% of BAS beneficiaries. There is a good proportion in the service/trade sector (58% of the total), in which a lot of new SMEs are emerging.

The geographic distribution of the beneficiary SMEs which have received BAS Programme support follows the pattern of geographic location of SMEs in Armenia as a whole. Though majority of SMEs are based in Yerevan the Programme has shown high activity in the less developed regions outside the capital city; a large proportion of projects (53%) are for regional enterprises.

Enterprises with less than 300 employees are the major engines of job creation in countries around the world and by supporting SMEs in Armenia, the BAS Programme has been furthering secondary objectives of poverty alleviation and sustainable economic development. Smaller enterprises tend to be able to take advantage of market opportunities more quickly than larger ones and thus contribute immensely to the competitiveness of the economy.

The SMEs supported by BAS financing are classified in 4 groups by the number of employees; the percentages of enterprises in each group reflect the size structure of the local economy and the criteria of BAS Programme. About 88% of projects were with companies having less than 100 employees and this is an encouraging sign as it indicates the companies which have great potential for growth.

A database of consultants has been set up listing more than 100 consulting companies, of which 69 have been retained under a BAS funded project.

Qualified local consultants are preferred and more than 91% of the consultants hired for BAS-supported projects in Armenia have been locally-based. Local consultants offer excellent value for money and can communicate directly with the enterprise without language or cultural barriers, which increases the likelihood that the advice will be understood and acted upon. Moreover, local consultants aim to build a professional reputation and are strongly motivated. The Programme provides consultants with experience working on commercial projects for local companies and, as a demanding party to the project contract, compels consultants to perform their best for beneficiary enterprises.

Local consulting companies express significant satisfaction with the Programme, which has been recognized as instrumental in generating interest among potential clients and in increasing the access to advisory services; 62% of beneficiaries have not used external consultants before the project with BAS.

During the Communications Meeting to summarize the results of EU funding, the EBRD BAS Programme for Armenia was distinguished from other donor initiatives with "transparency, professionalism, low bureaucracy and fast response (in 48 hours)."

BAS Programme procedures require preparation of a completion report for each project one year after the disbursement of the subsidy. Since the BAS Programme is a demonstration project designed to show SMEs the benefits of obtaining professional business advice, it is essential to prove that, in fact, enterprises have gained from the Programme's support and that the program has met its goals. Project success is evaluated by measuring the one-year growth in turnover, number of employees, investments attracted, etc.

As evidenced by the results of 264 completion reports prepared by 31 May 2007, total sales on an annual basis have increased by 65% and total number of employees by 29%. About 53% of those projects have been ranked as highly satisfactory, 39% as satisfactory and only 8% as unsatisfactory.