CURRENT STATE AND EFFICIENCY OF STATE ENTREPRENEURSHIP IN THE REPUBLIC OF ARMENIA

Abstract

As a result of the transformation from a totalitarian to the market economy, a mixed economy has formed in the Republic of Armenia with the dominant role of the private sector, thanks to which both state and private commercial organizations operate in Armenia. Currently, the state authorities are taking steps to expand the role of state-owned entrepreneurship (by definition, commercial activities aimed at making a profit). At the same time, no serious, economically sound arguments in favor of such intentions and concrete actions by the authorities are given. The authors of the article, based on the fact that there is competition between state and private entrepreneurship in Armenia, believe that economic efficiency should be the basis for the development of state business and the policies pursued in this area. In other words, all those types of economic activities that the private sector is engaged in should not become objects of state entrepreneurship. The analysis carried out by the authors also shows that state-owned enterprises in Armenia have mostly been unprofitable so far.