The project suggests transforming an abandoned soviet sewing factory into a modern multi-functional space, DILIJAN FACTORY, to host the co-location of enterprises and individuals. The central idea is that co-location encourages creativity and ideas exchange, de-risk entrepreneurial activity, and boosts the development of value chains. When co-location is fuelled up with support programs, the residents thrive. And the emergence of start-ups and SMEs is the key driver of economic growth.
The Action is delivered in three main components and their relevant activities:
Component 1: Development of hard infrastructure to improve the business environment
Activity 1.1 Renovation of the building and landscaping the adjacent area
Component 2: Development of soft infrastructure to enable economic growth
Activity 2.1 Production Units with access to onsite market
Activity 2.2 Business Support Center with one-stop-shop for businesses
Activity 2.3 Coworking Center with Incubator and Accelerator
Activity 2.4 Hospitality Business Association
Component 3: Promotion of social and economic inclusion
Activity 3.1 Relocation and enhancement of Dilijan Community Center
Activity 3.2 Extension of Employment Center of Dilijan

The Overall Objective of the Action is to enhance economic growth and job creation in the enlarged Dilijan community. The enablers to tackle this growth are (1) implications of social economy – cooperation of enterprises in business associations and cooperatives, (2) institutional support to business – from advisory and administrative matters to education and outsourced services, (3) business clusters – bringing the members of sectorial value chains together, both physically and virtually.

Among the groups of final beneficiaries, there are four major ones to enjoy major improvements:
(1) Entrepreneurs with the business ideas to incubate and accelerate; it is planned to have 120 applicants annually, distributed in cohorts and going through cycles of accelerator or the longer-term program of incubator. The call for application will be extended to wider region of Tavush and Northern region to ensure volume of applications, their competitiveness and social inclusiveness.
(2) Enterprises seeking support with business administration. There are over 800 enterprises in Dilijan, yet almost 90% are individual entrepreneurs or micro enterprises. It is then assumed that annually the Action will reach about 100 SME with one-off services, and about 20 SMEs will subscribe to outsourced services.
(3) Hospitality Business Association will consist of 20 core members to lead on collegial work. Among many concerns, the industry lacks the shared information (e.g. calendar of events), mutual bundles for cross- and up-selling, strategy on destination marketing.
(4) Local population represents another important category of final beneficiaries. The typical needs of this group are inclusive spaces and content to meet, learn, interact and co-create. The Action targets 50 daily users of co-working space, 150 unemployed population with development and orientation programs annually, 5’000 annual beneficiaries of Community Center programs