The Trend and Sustainability of SMEs: The Case of Azerbaijan

Abstract

This research outlines information about the latest trends according to the Small and Medium Enterprises (SMEs) in Azerbaijan. It mainly identifies current opportunities and obstacles for SMEs in the aforementioned country and it also explains the government’s special program concerning the effectiveness of SMEs which clarifies some of the questions like financing, access to funds, and its process (application process, the main criteria, long-term perspectives, collaboration aspects, etc.).

In addition, it also provides possible solutions regarding the improvement and coheres with the global process where SMEs have a significant effect on economic integration. Concerning this procedure, it also has a direct impact on employment, income per capita, and other economic indicators where an expansion of the scope of these businesses enhances this process where it directly affects and boosts these indexes.

According to the result of this study, SMEs haven’t yet evolved effectively in Azerbaijan, some efforts are constantly affected to remedy these actions which were mostly connected to the streamlining of business license requirements and the enhancement of taxation but relies on statistical data. I may conclude that these measures are still insufficient, and it is essential to implement further incentive approaches by calling on international experiences. According to this reason, the institution for the development of SMEs must have a particular impact on this growth path. Additionally, the created roadmap has a crucial influence on the development process of SMEs.