The competitiveness of small and medium enterprises as well as the creation of new business in disadvantaged regions of Armenia was supported through rendering capacity building activities to local implementation institutions.

This was reached through activities in the following fields:

• Strengthening the dialogue between state and private industry on local and regional level and supporting the development of an SME relevant policy framework on central level (feed-back from local/regional experiences);
• Initiating economic development activities in favour of SMEs and employment in disadvantaged regions (LED component);
• Supporting selected business associations and chambers in organisational development and service development;
• Increasing the quality of business advisory and start-up support services with specific attention given to the demand in disadvantaged regions outside the capital Yerevan;
• Assisting selected industries through tailor-made support actions, initiating regional and international co-operation.