Bank-executed activities, for which the Bank has implementation responsibility over, includes the following subcomponent amongst others:
Supporting Small and Medium Enterprises (SMEs) and firm-level productivity
The main objective of this component is to support the Ministry of Economy of Armenia to (1) implement firm-level analysis to identify drivers of productivity and jobs growth and to strengthen the capacity of the National Statistics Agency of Armenia to collect firm-level information, and (2) conduct analysis and operationalization of policies aimed to facilitate digitalization and innovation absorption for SMEs, including for export-driven firms to facilitate design of specific public programs to promote firms’ digitalization, innovation, exports and integration into GVCs.

The objectives of the Subcomponent VII of the program (Supporting SMEs and Firm Capabilities) are to support the Government of Armenia identify policies aimed at: (i) strengthening the business environment; (ii) supporting SMEs; and (iii) increasing firm productivity.

The Overall Objectives are:
• Support provided to key economic reforms in areas that have been identified as economic growth constraints or opportunities.
• Improved quality and robustness of evidence and analysis underpinning the design of reforms supporting SMEs and firm-level productivity.
The Specific Objectives are:
• Improved Economic Governance and better management and attraction of Public and Private Investment.
• Improved governance of public programs supporting SMEs and improved capacity to collect firm-level data on access to finance, export, productivity, R&D investment, and innovation through the adoption of the recommendations.

The component expects to achieve the following result:
• Enhancement of programs to promote SMEs, exports and innovation and improved capacity of government to support SMEs.