Development of Small and Medium Business in Azerbaijan (ANALYTICS)

ByFrancoise Ardion

Jul 4, 2022 , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

One of the main priorities of Azerbaijan’s policy is the formation of free entrepreneurship and a liberal economy. “2030: national priorities for social and economic development”, approved by the Decree of the President of Azerbaijan Ilham Aliyev dated February 2, 2021, includes the limitation of the hidden economy in the country, as well as the expansion of the liberal economy.

A liberal economy has a significant impact on the creation of a competitive environment. A liberal market economy is about ensuring competition and a competitive environment. Without a competitive environment, there is no market economy, and if there is no market economy – it means that liberal values do not work. In such a situation, there can be no question of free entrepreneurship, the improvement of citizens’ well-being, or the protection of their rights.

The competitive environment is important in management, politics, economy, in short, everywhere. Of course, governments choose different ways to encourage this.

After Azerbaijan regained its independence, as a result of the formation of a liberal economic system based on market relations, the creation of conditions for economic freedom and entrepreneurship of citizens, efficient use of rich natural resources, an increase in investment attractiveness, and other measures, the economy of Azerbaijan has entered a new quality stage.

A free-market economy and the establishment of a competitive business environment in Azerbaijan ensure the development of the private sector. In the implementation of the State Programs for the socio-economic development of the regions, special importance is attached to the strengthening of local entrepreneurship. The financial support of the state, as well as the allocation of subsidies for the purpose of expanding the activities of entrepreneurs, further accelerates the development of the private sector and increases its capacity in the general economy.

The experience of recent years highlights the development of entrepreneurship as the most efficient way to diversify the economy. The level of development of entrepreneurship lays the foundation for the diversification of the economy and the elimination of dependence of the economic system on one area.

One of the important measures implemented in the direction of promoting free entrepreneurship in the country is the issuance of “investment promotion documents” to entrepreneurs. With this document, entrepreneurs are exempted from a number of taxes for a specified period of time, and various concessions are applied for the expansion of their activities. This step is just a part of the work done in recent years in the direction of creating a favorable business environment and promoting free economic activity in the country.

When talking about the measures implemented to promote entrepreneurship in the country, the importance of the “Small and Medium Business Friend” (“SMB Friend”) program implemented in the regions of the republic by the Small and Medium Business Development Agency established under the Ministry of Economy should be mentioned.

The reforms implemented in order to ensure the dynamic development of Azerbaijan are highly valued at the international level. In this regard, the “Doing Business 2019” report published by the World Bank should be specially noted. Thus, in the World Bank’s “Doing Business 2019” report, Azerbaijan ranks 25th in terms of the level of the business environment and is among the 10 most reforming countries.

SMB Friends is a mechanism that provides support to SMBs in the direction of identifying and realizing the initiatives and potential opportunities of micro, small and medium business entities, creating and developing new SMB entities, as well as protecting the rights of entrepreneurs.

All these listed once again confirm that the development of free entrepreneurship and a liberal economy is the focus of attention in Azerbaijan.

Analytic group of News.Az

The article focuses on free entrepreneurship and a liberal economy

The article was published with the support of the Media Development Agency of the Republic of Azerbaijan (MEDIA)