Ruzanna Harutyunyan’s vision։ How EBRD and EU support turned challenges into success
Ruzanna Harutyunyan is no stranger to challenges or success. In 2005, she co-founded Kradan, a corrugated cardboard box manufacturing business, together with her future husband. Their venture, born from love and entrepreneurship, sparked his repatriation from Syria to Armenia, intertwining their personal and professional lives. Today, that partnership has blossomed into both a flourishing family and a successful enterprise.
“Before starting our business, we thoroughly studied the market,” Ruzanna recalls. “We realised Armenia lacked sufficient local production of corrugated cardboard boxes. Even though neither of us had experience in this field, we decided to pursue it.”
Choosing to establish their company in Armenia’s Armavir region rather than the capital was strategic, aimed at creating additional value locally. Their vision proved beneficial, leading to the creation of more than 50 jobs in an area in need of employment opportunities.
Reflecting on the journey, she admits it was far from easy. “We have come a long and difficult way since 2005,” Ruzanna says. “We learned and grew together because the sector was completely new for us. Now, after 20 years, our efforts have significantly paid off.”
Initial hurdles have become memories that she now recounts with pride and humor. “We no longer see problems as insurmountable. We import and stock our own raw materials, ensuring uninterrupted production cycles. Competition motivates us—it pushes us to learn more, invest boldly, and take necessary risks.”
Ruzanna underscores the value of external support and investment. Her company has received a significant boost from the European Bank for Reconstruction and Development and European Union to install a 200,2 kWt PV station, due to a loan received through Inecobank. The EU4Business-EBRD Credit Line- this joint programme helps small companies upgrade their production to international standards, foster health and safety practices and enhance sustainability. Since inception of the programme in Armenia in 2021, more than 220 companies have benefitted from the support.
For Kradan, the investment in solar panels resulted in primary energy savings of 645.64 MWh/year, dramatically reducing their electricity expenses. “Given Armavir’s predominantly sunny climate, solar energy was an ideal solution. Within a few years, we will completely eliminate our electricity expenses,” she notes.
Upon the successful completion of the installation of the solar station, the company received an incentive grant, funded by the European Union under its EU4Business initiative, which was a significant support towards the company’s business development plans.
For Ruzanna, ongoing education, resilience, courage, and adaptability are cornerstones of lasting success. “Don’t fear innovation or the unknown,” she advises. “Study the market carefully, identify unmet needs, and think outside the box. It took us nearly a decade to start seeing significant profits, and we’ve had our share of failures. But failures should inspire perseverance. Nothing worthwhile comes easily, but determination always leads to success.”
She also encourages entrepreneurs to leverage available co-financing and loan programs. From personal experience, Ruzanna affirms, “Programs like EU4Business-EBRD Credit Line significantly simplify modernisation, expansion and export capability, providing stability and competitive advantage in the market.”
The EU4Business-EBRD Credit Line combines loan and leasing finance via partner financial institutions with free technical assistance and EU-funded investment incentives that reduce investment costs and ultimately make it easier for businesses to modernize and grow.
The EU4Business-EBRD Credit Line is tailored to help MSMEs align with EU Directives, improve product and service quality, and enhance environmental responsibility. It provides MSMEs with the tools they need to increase competitiveness and take advantage of export opportunities, leveraging Armenia’s relatively low-cost base to compete effectively within the EU and regional markets. The investment incentives of 10-15%, funded by the EU, are calibrated to support investments in more advanced and expensive technologies.
