Armenia’s business environment is undergoing dynamic but mixed changes. Growth in certain sectors is accompanied by new challenges, structural issues, and the need to rethink management approaches. Companies face both internal constraints and the demands of global competition, while individual industries — from textile manufacturing to services — require a reassessment of development strategies and adaptation to new realities.

What processes shape today’s economic agenda and which solutions can be effective? These and other topics were discussed on Economix by management expert Artak Aslanyan.

Surprises of the Armenian Market

According to him, Armenia’s business landscape differs in many ways from international markets, sometimes in unexpected ways. He recalls cases when international franchise companies entering the Armenian market faced results that completely contradicted their expectations.

Aslanyan explains: “These companies had their own CRM systems, huge amounts of analytics, and according to their data, the brand was targeted at women over 30. But in Armenia, everything turned out to be the opposite — the main customers were unmarried women aged 23–26. It was a real shock for them.”

At the same time, he emphasizes that almost any discrepancy has an explanation. Armenian business, he says, is simultaneously similar to and different from Western business: similar only to the degree required for integration into international markets, yet maintaining deeply rooted local characteristics.

Queens, Not Chess Players

One of the distinctive features of Armenian entrepreneurship is the attitude of business owners toward transferring management responsibilities. Aslanyan notes that many Armenian entrepreneurs are not ready to hand over part of their functions to younger specialists at the right moment. “In most cases, our entrepreneurs do not want to pass the baton. As a result, the business ages with them: it grows, develops, and then at some point stops functioning as effectively.”

The expert believes that the root of the problem lies in mentality and lack of trust. Many company owners try to control everything themselves: from production to sales. But such involvement often leads to burnout. “As a result, the business starts to lose,” he explains.

Aslanyan uses a metaphor he often shares with entrepreneurs: business is a game of chess. If the owner sees themselves as a king or queen, they become vulnerable. But if they change their position and see themselves as the chess player who sees the entire board, their possibilities expand dramatically. This, he believes, is how a leader should act if they want to grow the company.

Staff Shortage

At the same time, many entrepreneurs claim that they cannot delegate responsibility due to a lack of qualified personnel. Aslanyan agrees that the problem exists, but only partially.

He cites an example from the textile industry, where some expensive equipment stands unused because there are no specialists able to operate it. But in operational management, he says, much can be solved internally: “If you have employees who have been working for 10–15 years, you can develop their strengths. It is a matter of proper function distribution. It is important to see the potential of employees and give them the opportunity to take over part of the processes.”

The expert is convinced that smart delegation and staff development are essential for growth. And as long as the entrepreneur remains a “chess piece” rather than a player, the business will depend solely on them and will ultimately lose.