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Strategies of the Development of Entrepreneurship and SME

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Due to <strong>the</strong> statistic figures from 6 months <strong>of</strong> 2007 about 75,669 new, also 53,390permanent job places were created in <strong>the</strong> country. Generally, 572,152, also 405,795permanent job places have been created from 1 October 2003 until 1 July 2007. 82% <strong>of</strong> newjob places were created in <strong>the</strong> regions <strong>and</strong> 86% in private sector.A new draft <strong>of</strong> <strong>the</strong> State Program on “Tourism <strong>Development</strong> in Azerbaijan Republic”(2007-2012) is under discussions at <strong>the</strong> moment. At <strong>the</strong> result <strong>of</strong> implementation <strong>of</strong> <strong>the</strong>previous program which covered 2002-2005 years about 100 tourism companies are operatingin <strong>the</strong> country.Table 26.The number <strong>of</strong> tourism companies,including:State sectorPrivate sector2001 2002 2003 2004 2005 200618 39 50 58 81 96216138248355378393The number <strong>of</strong> employees 127 319 356 475 646 779The total income <strong>of</strong> tourism companies2.6 4.9 7.1 10.0[USD million]The main achievements after implementation <strong>of</strong> <strong>the</strong> State Program on“<strong>Entrepreneurship</strong> <strong>Development</strong> in Azerbaijan Republic” (2007-2012) will be <strong>the</strong> followings:- increase <strong>the</strong> technological level <strong>of</strong> <strong>SME</strong>s;- development <strong>of</strong> export potential <strong>of</strong> <strong>the</strong> country;- increase <strong>the</strong> role <strong>of</strong> <strong>SME</strong>s in effective realization <strong>of</strong> export operations, etc.It is forecasted that <strong>the</strong> GDP will increase 2.1 times, <strong>the</strong> volume <strong>of</strong> products <strong>and</strong>services produced in private sector 76%, <strong>the</strong> volume <strong>of</strong> products <strong>and</strong> services produced in nonoilsector 1.7 times during <strong>the</strong>se years, <strong>the</strong> share <strong>of</strong> GDP in private sector will be 85%, <strong>the</strong>share <strong>of</strong> non-oil sector will be 48% in 2012. The investment into <strong>the</strong> national economy will beUSD 50.5 billion during 2007-2012 years.The State Program <strong>of</strong> Azerbaijan Republic on “The implementation <strong>of</strong> Employment Strategy<strong>of</strong> Azerbaijan Republic” (2007-2010) was approved on 15 May 2007 <strong>and</strong> after implementation<strong>of</strong> this program <strong>the</strong> following achievements will be obtained:- increase <strong>the</strong> role <strong>of</strong> <strong>SME</strong>s in solution <strong>of</strong> social problems in <strong>the</strong> country;- increase <strong>the</strong> employment level <strong>of</strong> <strong>the</strong> population by opening new job places;- 10% increase <strong>of</strong> <strong>the</strong> number <strong>of</strong> employees in private sector;- 79% <strong>of</strong> all employed people will belong to <strong>the</strong> private sector;- 260,000 new job places will be created in <strong>SME</strong> sector until 2012.Table 27.Doing Business in AzerbaijanRanks 2006 2007 20081. Ease <strong>of</strong> doing business 100 99 962. Starting a business 96 643. Dealing with licenses 162 1594. Employing workers 66 805. Registering property 59 566. Getting credit 21 267. Protecting investors 118 1078. Paying taxes 136 1419. Trading across borders 158 17310. Enforcing contracts 34 3011. Closing a business 70 75105

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