Strategies of the Development of Entrepreneurship and SME

Diagram 1. The number of small enterprises [by %] as of 01.01.2007construction10%real property10,10%trade 42,80%agriculture15,40%processing9,50%About 407 processing, 722 construction, 500 agricultural, more than 100 trade andservice enterprises were established last year and 40% of this situated in the regions. Besides,3809 enterprises with the foreign investment were registered in 2006. The number of physicalentities engaging with the entrepreneurial activity without establishment of legal person wasmore than 243 thousand. Generally, 15,560 new enterprises were established within last 3years.The dynamic of subjects engaging with entrepreneurial activityTable 23.2002 2003 2004 2005 2006Juridical persons 43,834 46,320 50,635 56,688 60,089Physical persons 128,104 157,986 183,668 209,170 243,479Total 171,938 204,306 234,303 265,858 303,568The growth tendency in non-oil sector was 8.3% in 2005, 7.6% in 2006 and this factoris higher than the average indication in the world.A lot of legislative acts in the field of entrepreneurship development have been acceptedwithin the passed period. But, some of these legislative acts don’t meet the requirements oftoday and there is a need for adoption of new investment law stimulating the foreigninvestment to the regions. With this purpose laws on “Investment activity” and “Special freeeconomic zones” have been prepared together with the experts of World Bank. The law on“Investment activity” will substitute other 2 laws that are into force at the moment.The development of private sector is a priority and that is why it is envisaged in theState program on “Poverty reduction and economic development” (2003-20005), on “Small andmedium entrepreneurship development” (2002-2005), “Investment program for 2004-2007”,on “Social-economic development of the regions of Azerbaijan Republic” (2004-2008), etc.100