Since 2021, the European Bank for Reconstruction and Development (EBRD) and the European Union have been helping small firms in Armenia to modernise production methods in order to grow, generate jobs, drive innovation and contribute to economic growth.
These companies serve as a powerful example, showing that small businesses can have a large impact and provide a blueprint for others to follow. One such company is NEKA – a furniture maker with committed leaders, a hard-working team and a strong ambition to stand out in international markets.
Humble beginnings
NEKA’s founder, Narek Badiryan, was not always in the business of furniture making. Born and raised in Armenia, he began his working life in the field of economics – a world away from manufacturing. But his passion for tackling challenges and finding innovative solutions never faded.
“The idea of creating a product that truly satisfies customers fascinated me,” he explains. “Furniture production, in particular, stood out as a highly creative yet strategic industry.”
When Narek took a closer look at Armenia’s furniture sector, he saw an industry stuck in time – minimal innovation, outdated technology and little reliance on international expertise. That was when the idea for NEKA was born, nearly a decade ago.
The company has had several breakthrough moments in the intervening years. Just before the Covid-19 pandemic, the company made a bold move, building a new production facility equipped with modern machinery. Four years later, it expanded again, using cutting-edge equipment to enhance its production capabilities.
Continuous improvement
NEKA is one of more than 220 companies that have benefited from the EU4Business-EBRD Credit Line, which helps small firms to upgrade production in line with international standards, boosting efficiency and productivity while introducing robust health and safety practices.
The EBRD provides loans for upgrades via partner financial institutions – in NEKA’s case, Ameriabank – while the European Union complements this financing with grants of up to 15 per cent of the loan amounts on successful implementation.
The EBRD and the EU also provide technical assistance. Indeed, with support from the EBRD’s Advice for Small Businesses programme and with funding from the EU, NEKA has been introducing ISO 9001, a globally recognised quality management system, in order to further strengthen its operations.
“This support has helped us align with international standards – whether in green energy, workplace organisation or air pollution control. The results are already tangible, but our strategy is to keep improving, day by day, month by month, year by year,” Narek says.
A source of pride
“The best thing about NEKA is, without a doubt, the vision behind it – and the incredible team that has come together to bring that vision to life,” Narek explains.
What started as a small company with just eight employees has grown into a team of 78 skilled professionals. Together, they have carried out a wide range of creative, high-profile projects, with clients including the Aram Khachaturian Concert Hall, NVIDIA’s research centre in Yerevan and various embassies, restaurants and hotels.
“I take pride in all of our projects,” Narek says. “But just as important is our commitment to sustainability.”
The company is dedicated to minimising waste and maximising resource efficiency. Instead of disposing of wood-processing residues, NEKA repurposes them into energy-efficient biofuel.
The road ahead
With more than a thousand kitchens, doors, tables and drawers already crafted, and hundreds of thousands of square metres of materials painted, varnished and refined, NEKA is now setting its sights on international markets, looking to expand beyond Armenia’s borders. In fact, that journey has already begun: NEKA now has a branch in France, and it is planning to expand into the United Arab Emirates and the United States of America next.
“In 10 years, I see NEKA as a global brand, present worldwide,” Narek says.
With a strong focus on growth, innovation and sustainability, NEKA is setting an example at home and striving to be a successful exporter abroad.
