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Strategies of the Development of Entrepreneurship and SME

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13.Cabinet Provision on “Distribution <strong>and</strong> usage <strong>of</strong> budgetary funds under article <strong>of</strong>investment support for small entrepreneurship” (1997)14.Presidential Provision on “National Fund <strong>of</strong> Support for <strong>Entrepreneurship</strong>” (2002)15.Presidential Provision on “Council <strong>of</strong> Entrepreneurs under <strong>the</strong> President <strong>of</strong> Republic”(2003)16.State Program on “<strong>Development</strong> <strong>of</strong> Small <strong>and</strong> Medium Scale <strong>Entrepreneurship</strong> in <strong>the</strong>Azerbaijan Republic” (2002-2005)17.Presidential Provision on “Establishment <strong>of</strong> Special Economic Zones” (2007)18.Presidential Provision on “Several Measures for <strong>Entrepreneurship</strong> <strong>Development</strong>” (2007)19.Presidential Provision on “Measures for provision <strong>of</strong> organizational issues <strong>of</strong>entrepreneurial subjects on principles <strong>of</strong> “One window” (2007)20.Draft State Program on “<strong>Development</strong> <strong>of</strong> Small <strong>and</strong> Medium Scale <strong>Entrepreneurship</strong> in<strong>the</strong> Azerbaijan Republic” (2008-2012)21.State Program on “Social-economic <strong>Development</strong> <strong>of</strong> <strong>the</strong> Regions” (2004-2008)22.State Program on “<strong>Development</strong> <strong>of</strong> Communication <strong>and</strong> Information Technologies”(2005-2008)23.State Program on “Tourism <strong>Development</strong>” (2004-2005)24.State Program on “Improvement <strong>of</strong> Official Statistics” (2003-2007)25.State Program on “Combating <strong>the</strong> Corruption” (2004-2006)26.State Program on “Youth” (2005-2009)27.State Program on “Improvement <strong>of</strong> Tax Administration” (2005-2007)28.State Program on “<strong>Development</strong> <strong>of</strong> Custom System” (2007-2011)In accordance with <strong>the</strong> legislation <strong>of</strong> Azerbaijan Republic small entrepreneurshipsubjects are defined with <strong>the</strong>ir average quantity <strong>of</strong> employees <strong>and</strong> annual trade turnover <strong>and</strong><strong>the</strong> following legal persons are subject <strong>of</strong> small entrepreneurship:- To be engaged with entrepreneurial activity without establishment <strong>of</strong> legal persons;- The average quantity <strong>of</strong> employees;Up to 50 persons –in sphere <strong>of</strong> industry, transport, construction;Up to 30 persons – in agriculture, scientific sphere;Up to 25 persons - in trade <strong>and</strong> service sphere.Registration <strong>of</strong> individuals:- record <strong>of</strong> individuals involved in entrepreneurship without setting up <strong>of</strong> legal entity is carriedout by tax authorities on place <strong>of</strong> <strong>the</strong>ir living <strong>and</strong> activity;- record <strong>of</strong> legal entities involved into entrepreneurship by setting up legal entity is carried outby organs indicated in <strong>the</strong> legislation <strong>of</strong> AR on “Enterprises”.About 50 entrepreneurship types are carried out only on <strong>the</strong> basis <strong>of</strong> a specialpermission <strong>and</strong> <strong>the</strong> list <strong>of</strong> <strong>the</strong>se activities is determined by <strong>the</strong> President <strong>of</strong> AR.The national policy in <strong>the</strong> field <strong>of</strong> entrepreneurship, especially small <strong>and</strong> mediumentrepreneurship development in Azerbaijan Republic covers all regions <strong>of</strong> <strong>the</strong> country <strong>and</strong> allsectors <strong>of</strong> <strong>the</strong> national economy. This policy is directed to increase <strong>the</strong> effectiveness <strong>of</strong> businessenvironment, also improve normative – legal, institutional <strong>and</strong> economic mechanism in <strong>the</strong>country.The State Program <strong>of</strong> Azerbaijan Republic on “Social-economic development <strong>of</strong> <strong>the</strong>regions <strong>of</strong> Azerbaijan Republic” (2004-2008) is being implemented at <strong>the</strong> moment.About 73% <strong>of</strong> all entrepreneurial subjects were situated in Baki in 2000. But now, a lot<strong>of</strong> new private enterprises have been established in <strong>the</strong> regions <strong>and</strong> at <strong>the</strong> result <strong>of</strong> this process52.8% <strong>of</strong> all enterprises, 57.2% <strong>of</strong> <strong>SME</strong>s, 59.3% <strong>of</strong> newly established enterprises, 34.2% <strong>of</strong>individual entrepreneurs are situated in Baku.104

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