Business and entrepreneurship in our country are progressing day by day, with significant strides being made in this direction. The prime example for this is establishment of the Small and Medium Business Development Agency of the Republic of Azerbaijan (KOBİA) by the Decree of the President of the Republic of Azerbaijan dated December 28, 2017.
What actions has the organization taken in this regard?
The Small and Medium Business Development Agency (KOBİA) provided a response to the inquiry from 1news.az related to the subject.
-What steps have been taken by KOBİA in the direction of entrepreneurship development?
-The Small and Medium Business Development Agency (KOBİA) offers a range of support and services to business entities seeking to initiate and expand entrepreneurial activities. These offerings cover various stages of business development.The Agency offers entrepreneurs information, training, and advisory services pertinent to business activities, aiding in the formulation of business plans during the business planning stage. Nearly 14,000 business entities, startups, and individuals seeking to embark on entrepreneurship benefited from KOBİA's free training and advisory services aimed at educating entrepreneurs and enhancing business skills only in 2023. Nearly 700 business plans were assisted in their development for SMB entities. More than 420 entrepreneurs and individuals intending to start businesses have benefitted from the Agency's complimentary video tutorials. Furthermore, approximately 40 entrepreneurs and managers have engaged in specialized training courses in Germany under the Program "Business Collaboration with Germany" aimed at acquiring international experience. Entrepreneurs have the option to apply to SMB houses, where services from both state and private institutions are consolidated under a single space, catering to all stages of business development. In SMB houses, business services are provided across all directions, from business registration to its development. The number of SME houses reached 3 with starting operation of the “Baku SME house”, which was inaugurated by the President of the Republic of Azerbaijan, Currently, SMB houses operate in the cities of Baku, Yevlakh, and Khachmaz.. Ilham Aliyev last year. The entrepreneurs have access to over 300 services provided by nearly 50 state and private entities in these SMB houses. Entrepreneurs can benefit from the aforementioned support and services including support tools as grant programs for financing the Agency's internal market research, education, science, and research projects. The maximum aid package paid is 20,000 manats for each internal market research conducted. More than 50 internal market research projects have been conducted through entrepreneurs' applications and initiatives by KOBİA up to date. Over 1 million manats have been allocated for 58 projects to bolster funding for education, science, research, and support initiatives for SMBs up to date. Moreover, 145 "Startup" certificates have been issued to micro and small entrepreneurs, granting them tax exemptions on income from innovative activities for three years. KOBİA's core activities include facilitating market entry, both domestically and internationally, and supporting sales efforts. KOBİA assists SMBs in participating in diverse exhibitions and trade fairs for this purpose. Within this supportive framework, entrepreneurs not only showcase their product and services to broader audiences, but also enhance their sales prospects and forge new business relationships. The Agency facilitated the free display of products from nearly 80 SMBs at 10 exhibitions and supported the sale of products from over 25 business entities at 8 retail points established by the Agency in commercial networks only in 2023. Currently, one of the pressing issues for businesses is investing in and establishing enterprises in the liberated territories. In this regard, various requests are being received from entrepreneurs by KOBİA. Entrepreneurs applying to the Agency receive comprehensive details regarding the economic and investment prospects of the liberated territories, professional advisory services, coordination with pertinent government bodies, and support and services are provided for finding local partners. To top it all off, the “Service Window” implementing KOBİA's services for small and medium businesses is operational at the State Services Center located in the Aghali village of Zangilan district. Simultaneously, SMB friend offices are located in the liberated territories, fostering closer engagement with entrepreneurs to bolster business establishment and growth in the region. Moreover, several entrepreneurs who have initiated their ventures in the liberated territories have availed themselves of the diverse support and services provided by the Agency.
-What are the objectives, and can the actions taken accomplish them?
-KOBİA's primary objective is to enhance the contribution of SMBs to the nation's economy and elevate them into a substantial engine for economic advancement. To this end, efforts are underway to increase the number of SMEs, enhance their contribution to added value, and boost employment across the country.Top of Form Both internal resources and professional firms are actively involved in ongoing surveys, reviewing applications from entrepreneurs, conducting field interviews, and facilitating roundtable discussions to heed their suggestions and tackle their challenges. Based on the information obtained and analyses conducted, a range of support mechanisms have been made available for business entities and individuals aspiring to start entrepreneurship ventures in the past period. Grant programs for financing internal market research, education, science, research, and support projects, "Startup" certificates, support for accessing commercial networks, and participation in local and international exhibitions are effective mechanisms for business development. Over 50 SMB friend offices operating in various cities and regions of the country ensure comprehensive state support for the establishment of new entrepreneurship entities and the development of existing SMBs. In the near future, as we offer entrepreneurs the next set of SMB facilities in various regions, including the recently liberated territories, we will broaden the range of convenient access for businesses to services from both public and private institutions, all integrated within a unified space. We are dedicated to maintaining a leadership position in supporting SMBs by adopting cutting-edge international best practices and implementing innovative methodologies, as KOBİA. Recently, the SMB Model Enterprise was established through collaboration between the government, businesses, and universities. This model enables a thorough examination of real business processes, starting from initial planning to the establishment of the enterprise. While summarizing the accomplishments of the past period, including applying new distribution criteria of SMBs and the commencement of KOBİA's activities in 2018, the number of SMB entities surged by 54% over the course of five years. Over the span of five years, SMBs' contribution to the non-oil sector's added value has risen from 23.5% to 27.2%. Furthermore, the total additional value generated by SMBs has surged by over 74%, amounting to approximately 17.2 billion manats. Additionally, there has been a positive trend in SMB employment, with a notable 31% increase, totaling 370,000 individuals during the reporting period.
-What changes do entrepreneurs seek, and what suggestions do they have?
Through the field discussions and surveys, and meetings conducted by the Agency in collaboration with the Social Council, entrepreneurs primarily advocate for meaningful adjustments in various aspects. They highlight challenges such as limited access to credit for SMBs in regional areas, the legal intricacies surrounding land allocation modifications, the inadequate presence of regional wholesale centers nationwide, as well as the obstacles encountered by micro and small entrepreneurs in establishing representation within major trading networks. These concerns and similar issues have been voiced by entrepreneurs seeking enhancements in these areas.
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