(MENAFN- AzerNews)
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Nazrin Abdul
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In Azerbaijan, small and medium enterprises (SMEs) are the
backbone of the economy, comprising 99.6% of all businesses,
Azernews reports.
The Small and Medium Business Development Agency, part of the
Ministry of Economy, reports that 96.8% are micro-enterprises, 2%
are small enterprises, and 0.8% are medium enterprises.
Globally recognised on June 27 as the Day of Micro, Small, and
Medium Enterprises since 2017, this day highlights their pivotal
role in sustainable development and the economy. SMEs are
acknowledged as drivers of economic growth, providing employment,
reducing poverty, fostering entrepreneurship and innovation, and
contributing significantly to achieving Sustainable Development
Goals. Worldwide, SMEs constitute about 90% of all companies,
employing 60-70% of the workforce and generating 50-60% of GDP.
In Azerbaijan, the categorization of micro, small, medium, and
large businesses was formalised by a Cabinet of Ministers' Decision
in 2018. Micro-enterprises employ up to 10 individuals and earn up
to 200,000 manats annually, while small enterprises employ 11-50
people with annual earnings of 200,000 to 3 million manats. Medium
enterprises have 51-250 employees and earn between 3 and 30 million
manats annually.
The sectors where Azerbaijani SMEs are most active include
trade, agriculture, construction, processing, logistics, industry,
tourism, public catering, and transport. Over the past five years,
under the new SME classification criteria, the number of SMEs has
increased by 54%. Their contribution to the non-oil/gas sector's
added value has risen from 23.5% to 27.2%, generating approximately
17.2 billion manats in added value. Employment in SMEs has grown by
31%, surpassing 370,000 workers.
In 2023, the turnover of Azerbaijan's SME sector reached 43.8
billion manats, marking a 13% increase from 2022. This growth
reflects positive trends in company numbers and criteria
compliance, with approximately 5,300 companies meeting growth
standards.
The government provides extensive support to entrepreneurs and
SMEs, including tax incentives, customs benefits, infrastructure
development, preferential loans, and subsidies. The Small and
Medium Business Development Agency (SMB) plays a pivotal role in
enhancing state policy effectiveness, implementing institutional
support, and facilitating business establishment and growth.
Looking forward, Azerbaijan aims to further digitise SMEs,
enhance their role in transitioning to a green economy, and support
their activities in recently liberated territories. This strategic
focus aligns with Azerbaijan's broader socio-economic goals
outlined in the "Azerbaijan 2030: National Priorities for
Socio-Economic Development" strategy, reinforcing SMEs as a
cornerstone of economic growth and employment.
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