Context
In the aftermath of the 2020 war between Armenia and Azerbaijan, thousands of families found themselves plunged into a crisis they didn't ask for.
Despite financial compensation from authorities, these families endured severe hardship. They grappled with both economic instability and profound emotional trauma. The conflict's devastating toll was particularly evident in the plight of women who suddenly became widows, their lives forever altered by the loss of their husbands.
Another group of women faced the daunting task of caring for severely injured and disabled husbands. Their roles in the family abruptly shifted from homemakers to full-time caregivers. They needed to bear the heavy weight of sole responsibility for their children's well-being.
"I understood I stayed alone with my children and had something to do, but what exactly? I was unable to concentrate because I was uncertain about everything, even though I was not aware whether my husband was killed or missing."Interview Extract: War widow, 35 years old, mother of two children - Program beneficiary, IGA: Greenhouse, Armavir Region, Armenia
Many of these women had been homemakers. Their skills centered around family care rather than income generation. The situation was equally challenging for women caring for disabled husbands.
"I thought a lot about what to do because my husband needs me all day. He can't take care of himself alone, and in this rehabilitation period, someone should stay with him 24/7. I can't afford to have a nurse, so I chose to become a nurse."Interview Extract: Woman with a disabled husband, 50 years old, mother of three children - Program beneficiary, IGA: Graphic Design, Yerevan, Armenia
Add to this vulnerable population the refugees, deprived of stable resources and housing. They were forced to rely on meager state allowances that barely covered their basic needs.
Many refugee families lived in temporary shelters or were crowded with relatives. Thousands emigrated with uncertain futures and resources dwindling rapidly, but the main refugee population stayed in Armenia.
Finding a job immediately became a "mission impossible" as unemployment reached 15.5% of the active population in mid-2024, according to the Statistical Committee of Armenia. With fierce competition in the labor market and a lack of vocational education or skills that are well-suited to the job market, getting a job remains a big challenge.
For all these reasons, the Armenian Fund for Sustainable Development (AF4SD) and its partners launched an economic empowerment program to alleviate the situation of these vulnerable women.
Why Small Business Creation Works
Income-generating activity (IGA) creation can be an effective way to economically empower vulnerable women, including refugee women and war widows. Here are several detailed arguments for this approach:
Economic Arguments
Setting up a micro-enterprise isn't the only way to achieve socio-economic integration, but it's one of the most suitable means for refugees. Micro-business activities don't require complex administrative procedures, and taxation is almost non-existent. Non-transformed raw agricultural production is actually tax-exempt in Armenia.
Another reason to opt for small business creation is the reduced initial investment required, even with limited resources.
The existing micro-credit schemes and unsecured business loans often have crippling high-interest rates. Limited access to finance impedes social progress and hinders economic growth and stability. This equation is valid not only for refugees but for all. Without property to use as collateral for a formal loan, these refugee families lack the initial capital to set up an income-generating activity.
"We tried to obtain business credit, but the loan interest rate was unaffordable. We were advised to take a loan for an agricultural project at low rates, but the major problem was our housing. We are tenants, and the land isn't ours, which was unacceptable to the bank."Interview Extract: Refugee woman, 27 years old, mother of three children - Program beneficiary, IGA: Greenhouse, Ararat region, Armenia
Flexibility and Accessibility
Small businesses, especially home-based ones, offer flexible working hours. This is convenient for women who need to balance work with childcare or other family responsibilities. This flexibility is often crucial for refugee women or women with disabled husbands.
Many small businesses can start with minimal capital and resources, making them accessible to women with limited means. This is particularly relevant for refugees who have neither possessions nor savings.
Small businesses enable women to leverage their existing skills, whether in traditional crafts, cooking, or services.
"I used to have a homemade, additive-free meat delicatessen production in Artsakh for our family and our neighborhood. This is a long-term project that I would like to realize. Now, I need to increase the number of our piglets for sale. When some savings are available, I will purchase all the necessary equipment to produce. It will create added value to our farm. We could sell raw pork meat, sausages, and cured ham. I have already invited my neighbors to taste the homemade sausages that I prepared without any professional equipment, and they were all impressed."Interview Extract: Refugee woman, 31 years old, mother of four children - Program beneficiary, IGA: Pig farm, Aragatsotn Region, Armenia
Community Integration and Support
Throughout Armenia, refugees from Artsakh (Nagorno-Karabakh) were warmly welcomed by the local population. Starting a business can significantly enhance its integration into the local economy. It allows them to earn respect and recognition and fosters economic networks within their new communities.
Vulnerable women from war-affected families have received full support from their in-laws and neighbors.
"When the local market owner learned that I had lost my husband during the war and I had two children, he told me that I didn't need to rent a corner in the store for selling my dried fruits. Instead, he committed to selling the whole stock of products I could manage to produce."Interview Extract: War widow, 42 years old, mother of two children - Program beneficiary, IGA: Dried fruit production, Gegharkunik Region, Armenia
There were some cases, mostly in rural areas, where the death of a husband affected a woman's ability to maintain the family's financial assets fully. Due to biased social norms, the right to dispose of assets, property, or finances is informally transferred to male in-laws. This is another reason why the women's economic empowerment program elevates women's status in the family as economic actors and decision-makers. At least she has a say in household management.
Skill Development and Economic Impact
Another compelling argument for vulnerable women creating small businesses is the opportunity for skill development. We observed that refugees acquire and refine valuable competencies in entrepreneurship, financial management, and marketing through the management of their own enterprises. This experience fosters the development of key soft skills, including effective communication, collaboration, and enhanced social awareness.
The most important consideration when choosing to create a small business is generating extra income in addition to various state allowances.
According to the World Bank, a person must have an income of less than $2.15 per day to be considered poor using the 2022 international poverty threshold. The average poverty rate in Armenia was 24.8% in 2022, down 1.7 percentage points from the previous year's rate of 26.5%. The extreme poverty rate was 1.2%, down 0.3 percentage points from 1.5% in 2021.
Poverty Rate in Armenia
0.0%
2021
0.0%
2022
0.0%
2023
Our field visits and evaluations confirmed that the program enabled refugees and vulnerable women to increase their monthly incomes, thereby preventing them from falling into poverty. This aligns with the program's overall objective of reducing poverty and building a stronger, more equitable society in Armenia.
Transforming Communities
When a refugee starts an income-generating activity, it ensures the whole family's self-sufficiency. They cease to be dependent on community members, thereby improving the local economic ecosystem.
The community becomes the primary consumer of refugee women's services and products. As a result, refugee women transform from socially dependent, assisted individuals into economic actors. They create new job positions, generate income, and contribute to overall local economic growth.
We also observed another positive outcome for women: increased power in society through participation in the economic empowerment program. The program accepted only female applicants and encouraged them to take on leadership roles.
During war and crises, they had been largely excluded from decision-making processes. Now they're taking charge of their economic futures.