Strategies of the Development of Entrepreneurship and SME

during the following years; the measures on privatization of shares of joint-stock enterprisesestablished during the previous years should be accelerated. The privatization of infrastructuresof country economy is the demand of today. Several mearsures in sectors such as watersupply, sewerage system, heath provision, gas supply has been taken in order to reestablishmanagement and economic activity of enterprises. There is a need for investment into thesesectors in order to use the resources correctly and improve the quality of services. Newprojects are considered to make fundamental changes in water supply, health provision sectorsof Baki and big cities. At the same time the reforms in telecommunication and airlines sectors,privatization of exsisted enterprises are the main duties to be solved.The important issues to be executed in the future are ensuring the more flexible andspeed tendency of privatization process, attraction of modern technology and equipments byprivatization of important state enterprises, restoring the activity of inactive enterprises,restructurization of big state enterprises, demonopolization and recovery of privatizedenterprises.Generally, the privatization process shouldn’t be limited with the allocation of propertyrights from state to private sector as formality. The further activity of privatized enterprisesshould be controlled and supported afterwards. There were several problems in executedprivatization process in the republic during first years. So, the participation of population in thisprocess wasn’t sufficient. And the main reasons of this were unsufficient enlightening ofpopulation about the process. The another problem was lack of initial capital of population andthis factor created obstacles for the privatized enterprises after their privatization. At the sametime the privatization process wasn’t carried transparently and public control on the processwas weak. That is why population preferred to sell their cheques rather than use inprivatization.There were no cheque investment fonds in Azerbaijan which affected on the violation ofbalance between demand and offer for the shares of privatized enterprises. And as a result ofthis only 18% of all cheques were used in privatization process. The restructurazation andrecovery of privatized enterprises should be executed at the same time with the developmentof country economy.5.3.2. Legislation and steps of doing Business in Azerbaijan.At the moment the main priority for the Government is to support the small andmedium entrepreneurship development in the country. A lot of important steps have beentaken in order to improve the state regulation system of entrepreneurship. During previousyear several laws, state programs, presidential decrees providing the systematic character ofjuridical base of entrepreneurship have been adopted by the Government.1. The Law on “Entrepreneurial activity” (1992)2. State Program on “Entrepreneurship Development” (1993-1995)3. The Law on “Enterprises” (1994, since 2000 the Civil Code)4. State Program on “State Support for Small Entrepreneurship” (1997-2000)5. The Law on “Enterprises of Limited Liability” (1998)6. The Law on “State Support for Small Entrepreneurship” (1999)7. The Law on “Changes to the Law on State Support for Small Entrepreneurship” (2003)8. The Law on “Changes to the Law on Entrepreneurial activity”9. President Decree on “Establishment of the Council of Entrepreneurs under the Presidentof the Azerbaijan Republic” (2002)10.President Decree on “Additional measures for Provision of State Support to Developmentof Entrepreneurship in the Azerbaijan Republic” (2002)11.President Decree on “Prevention of Interventions Impeding the Development ofEntrepreneurship” (2002)12.President Decree on “Some Aspects of Regulations of Entrepreneurship activity” (2003)103