As part of the CirculUP! project, Impact Hub Yerevan has been supporting entrepreneurs in creating or growing their businesses using the principles of Circular Economy, including funding solutions that take them to a new level of circularity. We spoke to six entrepreneurs to better understand their businesses and their outlook on the Circular Economy.
Text : Nazareth Seferian Photo : Impact Hub Yerevan
THE RUG CODE
Kyle Khandikian, Founding Director
What is your business, and how is circularity integrated into it today?
— The Rug Code is an online shop for high-quality rugs and carpets, handmade and directly supplied from weavers based in the villages of Armenia. The online shop launched in February 2024 to preserve our Armenian traditions of rugmaking while providing an opportunity for people living in rural Armenia to make a decent living. Previously, the women who were skilled in our traditional rugmaking techniques could not find customers for their carpets, and so they chose to engage in other activities to secure an income for themselves and their families. The Rug Code helps solve this issue by promoting their products, arranging high-quality photographs, and finding customers for these beautiful handmade rugs and carpets.
When someone makes a rug, there are always leftover scraps of thread that are usually tossed out and burned. I found out that these scraps can be processed and turned into a ribbon-like material that one can then use to make felt rugs. We also have an ancient tradition when it comes to using felt for rugs, and this is even more endangered, so this is a great way to develop a new product while staying true to our mission.
How did the CirculUP! project impact your business?
— I learned about the Circular Economy through the CirculUP! project and this inspired me to look at our waste products and see what we can do with them. I wanted to stick to my principles of sourcing only local raw materials, working with village-based weavers, and using natural dyes, so the option of using felt was really a good fit. The project also provided the support we needed to get one of our artisans the necessary training to try rugmaking with felt, to refurbish old family looms, and get the necessary equipment we needed to make our carpets and rugs in the sizes that match our customers’ orders.
Who are your biggest customers, and does circularity matter to them?
— The Rug Code sells its products mostly to individuals and families in North America and Europe. These are people who care about the fact that these rugs are handmade, and that this work generates a positive social impact in Armenia’s villages. Now, this added element of circularity helps us stay true to our principles and have even more impact in our country. So, I’m confident that they will appreciate this new element in the Rug Code story.
Do you think the Circular Economy is important for Armenia?
— Absolutely. In our case, our wool travels from one end of the country to the other a couple of times before it ends up in the hands of our weavers. There is so much negative impact there in terms of low efficiency, high costs, as well as unnecessary emissions. A countrywide shift to the Circular Economy will be positive for many businesses in Armenia, leading to greater efficiency and reduced costs, which means higher profits. And, of course, our environment benefits as well.
FLOWTRIC
Ani Sahakyan, Founder and CEO
What is your business, and how is circularity integrated into it today?
— We harness energy from the sun, wind, and water using small, portable devices that you can take with you on hikes and outdoor trips. We are a startup and have not yet entered the market, but we are looking forward to providing outdoor adventure lovers with the ability to charge their devices and meet other electricityrelated needs, even if they are away from civilization and enjoying the beauty of nature for several days in a row.
Besides the fact that our solutions work with renewable energy, there is also an element of circularity in our product design—the devices are modular and can be broken down into their components and rearranged as needed, depending on whether you want to use solar energy or wind energy, depending on how much energy you want to generate, and so on. Our business model is also circular—we will have an open-ended buyback offer for the clients that purchase our devices, and we are also aiming to provide them on a rental basis.
How did the CirculUP! project impact your business?
— I had heard about the Circular Economy before the project, but my understanding of it was limited to recycling. I learned during the incubation phase about how businesses can prevent value loss and create new solutions that also have a financial return. We also got funding from the project that we will use in marketing, which will be important for us when we enter the market.
Who are your biggest customers, and does circularity matter to them?
— We see nature lovers as our main customer segment, so there is a clear harmony here between their values and the positive impact that our company generates for the environment. We are aiming to position ourselves in the local, US, and particularly European markets, where consumers value circularity and care deeply about nature. We are also aiming to develop a message around our products that focuses on positive emotions, and I think this will fit well into the whole picture.
Do you think the Circular Economy is important for Armenia?
— The industrial sector in Armenia generates a lot of waste and there are many opportunities for recycling and greater circularity. Everyone knows that air quality in Yerevan is a big problem now and our water is not as pure as it used to be. If each of us takes a step in the right direction, we will get to enjoy these natural resources for a longer time, while also ensuring our own long-term health.
LUKASHIN AGRICULTURAL ASSOCIATION
Vardges Davtyan, President
What is your business, and how is circularity integrated into it today?
— Our consumer cooperative was founded in 2005 with 42 members, and we now have more than one hundred farmers within our business. We offer a range of fresh, dried, frozen, and processed agricultural products, such as dried fruits. In the past, we would end up with lots of waste during the fruit drying process—some pieces of fruit were not used because they were wrinkled or not of the best quality, and there would be lots of seeds left over that we would discard. Today, we see this as a new kind of raw material and we have developed a range of products from it, like soft candy, fruit bars and seed oils.
How did the CirculUP! project impact your business?
— We already had a European certificate for organic produce and we were looking for ways to improve our products, using less energy and chemical supplements like caustic soda. Thanks to the CirculUP! project, we received training on important concepts and also received some funding that will go into solar panels. This will reduce our costs and make us more competitive. Through the project, we also purchased new equipment that works more efficiently, helping us save time while also reducing water usage and emissions during our production processes.
Most importantly, we can now offer a new range of products—seed oils. These are used for beauty and healthcare purposes. We used to discard the seeds but now make a product with them that is more valuable than the fruits themselves. The other members of our cooperative will soon see how this will make them more money per kilogram of fruit than ever. Seed oils are also easier to store—they take up less space than the fruits and have longer shelf lives. So any logistical issues like temporary border closures, delayed shipping, and so on will not affect their revenues and the seed oils fetch a higher price on the market than fresh or dried fruits.
Who are your biggest customers and does circularity matter to them?
— Our customers are individuals in Armenia and other countries—we also export to the European Union and the United Kingdom. Not all customers care for circularity—the ones outside Armenia understand this concept better. But all of them want to have high-quality products that are healthy and taste good, which we secure through our organic principles and the efficient nature of our processes.
Do you think the Circular Economy is important for Armenia?
— In agriculture, we should prioritize anything that takes us to more natural and less wasteful solutions. Over the decades, farmers in Armenia have used too much chemical fertilizer and we are now seeing that this is leading to a reduction in our soil quality. We need to keep our products healthy and tasty, which means sticking to some principles in terms of agriculture, which are also much more efficient and less costly in the long term.
SKESOOR MAMA
Hripsime Hovhannisyan, Founder
What is your business, and how is circularity integrated into it today?
— I worked for a long time as a journalist and was lucky enough to have a mother-in-law who would make clothes for me. We decided in 2013 to join forces and start a new business, which is how our fashion studio—Skesoor Mama, meaning “mother-in-law”—came into being in 2013. Over the years, I noticed how my mother-in-law kept putting scrap material aside after making various clothing items. I had started going to Impact Hub as part of another program and noticed an announcement for the CirculUP! project. I learned also that the fashion industry has one of the biggest negative impacts on the environment. So I applied for the project, and we decided to use our scrap material to make new products. Today, we stuff our oven mitts and some of the other household items we make using the scrap material that we generate from our work.
How did the CirculUP! project impact your business?
— I learned a lot about the negative environmental impact of the linear economy as well as the potential economic opportunities of a circular approach. Thanks to the available grant funding, we procured a machine that helps us reduce scrap cloth to something that we can use more easily. At the moment, it takes a lot of time to cut up that cloth manually; it will be much more efficient with that piece of machinery. The grant also allowed us to create some high-quality videos and improve our visibility on social media.
Who are your biggest customers, and does circularity matter to them?
— Our customers are mostly ordinary residents of Yerevan; I would not say that they are particularly aware when it comes to environmental issues. But my experience as a journalist has emboldened me to use every opportunity to talk to them about this topic and to tell them more about our journey towards circularity. We do this through our social media channels as well as when a customer walks into our studio or gives us a call. Surprisingly enough, I have received very positive feedback and people seem genuinely interested. They are now giving us all their old clothes and other scrap material that they would otherwise have thrown away, and we are looking forward to processing all this using our new textile processing equipment. We are looking forward to selling our circular products in Yerevan as well as online, through various sales platforms.
Do you think the Circular Economy is important for Armenia?
— I think we have all kinds of problems in Armenia and we sometimes lose sight of what is important. The environment is a priority around the world, we are seeing the consequences of climate change not just in Armenia, but everywhere on the planet. I think it’s great that businesses are becoming more responsible in this aspect in Armenia, and this is relevant for small enterprises too; it’s not just about large corporations.
BERDAVAN GUESTHOUSE
Erik Hakhverdyan, Founder
What is your business and how is circularity integrated into it today?
— I launched my guesthouse in 2019 in the village of Berdavan, Tavush, and developed the land around it using the principles of permaculture. Permaculture is a landscape design approach that allows you to use the same land for a long period of time without depleting the soil’s resources or fertility. It involves efficient usage of water and a diversity of plants, which makes the orchard a mini-ecosystem and provides better protection against insects and pests, without the use of chemicals. We also use a range of composting methods that give us various options for their application. We added a new element of circularity—we work with the farms in our region to collect their agricultural waste and use this material in our permaculture facility for mulching and other processes. Thus, we reduce waste, reap the benefits of these discarded resources, and also educate others in their potential use.
How did the CirculUP! project impact your business?
— I was a participant in another incubation program and one of my mentors told me about Impact Hub Yerevan’s CirculUP! project. I learned a lot about the Circular Economy; there are still various relevant tools from the training sessions that I plan to use in the future. I used the grant funding to procure a pickup truck that helps me collect the waste from neighboring farms for mulching, composting, and other activities.
Who are your biggest customers, and does circularity matter to them?
— The fruits and vegetables that I grow are offered to the guests who stay at Berdavan Guesthouse. There are several segments here—the family members of soldiers serving in the army base nearby often stay at my place. For them, environmental awareness or the Circular Economy is not a big topic, but they care about the quality of the food they eat, and they can tell the difference in taste when it comes to chemical-free fruits and vegetables. I also have tourists coming to Berdavan from time to time. Those who come from European countries tend to have more appreciation for permaculture and the Circular Economy.
Do you think the Circular Economy is important for Armenia?
— As far back as I can remember, we have had a scarcity of resources in Armenia and the world. With a growing global population and climate change, these issues will only grow worse. If we want to maintain the quality of the food we eat, we need to adopt a different approach to how we grow our fruits and vegetables. Permaculture offers that approach, and the Circular Economy presents a model that we can build around that.
BABY GEAR ARMENIA
Lisa Iskikian, Founder
What is your business and how is circularity integrated into it today?
— In 2024, I launched Baby Gear Armenia, a rental service that provides high-quality baby gear like car seats, strollers, and other essentials to families visiting Armenia with young children. The inspiration came from conversations with traveling parents, who debated lugging heavy car seats onto planes or considered buying travel cribs once here in Armenia to avoid schlepping gear they already owned. So, the concept of circularity is built into the business model by challenging the wasteful thinking of “I’ll just buy another one” and instead promoting longer gear lifespans through mindful reuse.
How did the CirculUP! project impact your business?
— Services similar to mine exist around the world and they are good examples of a circular business. I applied to the CirculUP! project and learned more about the Circular Economy because I wanted to grow my business in a sustainable and responsible way. I was excited to see how the project is educating businesses on becoming more circular and I appreciated the mentorship opportunities it provided. I received grant funding that I spent on marketing and other administrative support, as well as purchasing some baby gear to meet the growing demand that we are experiencing.
Who are your biggest customers and does circularity matter to them?
— Most of our customers visiting Armenia are from the US, Canada, and the UAE. Baby Gear Armenia provides value by giving these tourists a solution that is convenient and makes their travel safer and more comfortable. I would not say that the circularity aspect of it is the primary incentive that draws them to us. But this is about behavior change—people who might just buy an item are now seeing that there is the option to rent and then return it at the end of their visit. I believe this is the first stage in a change of mindset and behavio.
Do you think the Circular Economy is important for Armenia?
— It’s absolutely critical because circularity is a major aspect when it comes to sustainable development. In many ways, Armenia is still quite a wasteful country, and we really cannot afford to continue this way, given our size and finite resources. If individual households and businesses can think in a more circular manner, perhaps this bottom-up movement will give the necessary impetus for bigger changes like energy efficiency and other significant developments.
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