Deputy Min­is­ter: De­vel­op­ment of SMEs im­por­tant for coun­try’s econ­omy

Azer News - - Business - By Sara Is­rafil­bay­ova

De­vel­op­ment of small and medium-sized en­ter­prises (SMEs) plays one of the most im­por­tant roles in the eco­nom­i­cal progress of Azer­bai­jan.

Deputy Econ­omy Min­is­ter Sahib Mam­madov speak­ing at an event ded­i­cated to es­tab­lish­ment of co­op­er­a­tion be­tween SMEs and the Cen­ter for Sim­pli­fied Sup­port for Fam­ily Busi­ness (ABAD) said that de­vel­op­ment of SMEs is re­flected in the “Strate­gic roadmap on pro­duc­tion of con­sumer goods in Azer­bai­jan at the level of small and medium-sized en­ter­prises.”

“The Min­istry of Econ­omy is car­ry­ing out reg­u­lar ac­tiv­i­ties in this di­rec­tion,” Mam­madov noted. “For ex­am­ple, a spe­cial fair has been re­cently or­ga­nized for the de­vel­op­ment of SMEs and the pro­vi­sion of sup­port to this sphere. Es­tab­lish­ment of co­op­er­a­tion be­tween ABAD and en­trepreneurs is a con­tin­u­a­tion of these mea­sures. Our goal is to in­form the gen­eral pub­lic about the op­por­tu­ni­ties be­ing cre­ated by ABAD and help en­trepreneurs in­crease the range of prod­ucts.”

He added that the prod­ucts man­u­fac­tured by SMEs are suf­fi­ciently com­pet­i­tive and the min­istry will con­tinue sup­port­ing their ex­port.

En­cour­ag­ing self-em­ploy­ment has been de­ter­mined as a per­spec­tive busi­ness task in Azer­bai­jan and the gov­ern­ment does its best to cre­ate con­di­tions and op­por­tu­ni­ties to sup­ports en­trepreneur­ship in the coun­try.

Thus, in Septem­ber 2016, ABAD un­der the State Agency for Pub­lic Ser­vice and So­cial In­no­va­tions op­er­at­ing un­der the Pres­i­dent of the Repub­lic of Azer­bai­jan (ASAN) was cre­ated in or­der to sup­port the ac­tive par­tic­i­pa­tion of cit­i­zens in the so­cial and eco­nomic de­vel­op­ment of Azer­bai­jan, the de­vel­op­ment of small and medium-sized en­ter­prises (SME), in­crease of em­ploy­ment of the pop­u­la­tion.

More­over, in or­der to sup­port en­trepreneur­ship the gov­ern­ment cre­ates many other con­di­tions as, is­suance of the in­vest­ment in­cen­tives doc­u­ments fol­low­ing the ap­proval of amend­ments pro­posed to the Tax Code of the coun­try.

Un­der the in­vest­ment in­cen­tives doc­u­ment, half of the rev­enue of an in­di­vid­ual en­tre­pre­neur, prof­its of le­gal en­tity are ex­empted from in­come tax for seven years. Im­port of equip­ment for the im­ple­men­ta­tion of the projects is also ex­empt of VAT and cus­toms du­ties.

Also, the state re­funds 3-6 per­cent of the cus­toms value of goods to non-oil ex­porters within the frame­work of mech­a­nisms on pro­mot­ing ex­ports of non-oil prod­ucts.

It is also planned to cre­ate the Agency of Small and Medium En­ter­prises and the Guar­an­tee Credit Fund in 2017-2018.

Be­sides, there is the Na­tional Fund for En­trepreneur­ship Sup­port (NFES) un­der the Econ­omy Min­istry that has been op­er­at­ing since 1992 to pro­vide pref­er­en­tial loans from the state bud­get for small and medium busi­ness in an ef­fort to de­velop en­trepreneur­ship in the Repub­lic of Azer­bai­jan.

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