Will it be possible to produce furniture from bamboo in Yerevan?

Economist Vardan Petrosyan tries to start his own business for the second time. The first time it was not successful. He had borrowed necessary money for soufflé production and before the production became known it was time to pay the debt. As a result the business stopped working. The second try is another production. A project of founding a production of furniture, household items and souvenirs from bamboo will be introduced to specialists of the State Employment Agency. “During the first 1-2 months I don’t expect to have an income, in the beginning the results will be negative as I don’t expect to have any sales” says the startup businessman.

Vardan Grigoryan has been thinking of starting this business for already two years. But it is only now that he wrote the project, calculated possible expenses and incomes. He says that bamboo is novelty in Armenia and has some benefits compared with wood. The startup businessman has no fear of working in legal area and the tax policy for this type of business is rather light: 3.5 percent from turnover. However he has his own perceptions about the tax policy of the country. “It makes sense if the government has such an approach and gives benefits to small enterprises and startups of not paying taxes in the beginning”.

There are 9 beneficiaries who have applied for getting support by the program of State Employment Agency “Support to the small business”. The chief specialist of State Employment Agency’s department of programs methodological support implementation and consultancy Anahit Harutyunyan says, if the projects seem to be realistic to the specialists some financial support may also be provided. She continues: “25 percent of employee’s salary is funded, but not more than 50 percent of the minimum salary, 75 percent of the costs of equipments and devices to be purchased are reimbursed and 25 percent is invested by the businessman”.

The maximum amount of the financial support is AMD 1 million. After signing the contract the beneficiary has to work on his proposed project for at least 2 years otherwise the financial means are to be returned.


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