Strategies of the Development of Entrepreneurship and SME

The role of the state in technical support for SME and development of human resourcesis to improve information supply for SME, training and retraining of entrepreneurs andvocational training for SMEs, provide training, advocacy and information service on theentrepreneurship basis for youth finishing a military service, etc.In order to increase the development of regional entrepreneurship the following stepsshould be taken:- Attraction of investment to regions;- Providing speedy development of entrepreneurship in the regions;- Formation of local market infrastructure of entrepreneurship;- Development of farming enterprises.Reinforcement of protection of entrepreneurs’ rights:- Simplify state register of entrepreneurship subject;- Draft proposals on reinforcement of contract law norms and improvement of judgmentprocedure of contract argument through courts;- Removal of unlawful interference in entrepreneurship activity;- Technical and organizational support for public unions of entrepreneurs to renderprotection of rights and interests to their members.The financial support infrastructure to SMEs should be broadened. Major commercialbanks don’t have their divisions in the regions. The structure and situation of financial marketin the country cannot be considered suitable for business people as it doesn’t meet theirdemands and needs at all. First of all, the financial institutions should be diversified, specializedcommercial banks financing different sectors of economy, especially sectors such as processingof agricultural products, tourism, export - import operations should be established, investmentfunds and other financial infrastructure should be created.In order to establish information supply database for entrepreneurs it is necessary tocreate business centers in the regions. But, it is impossible to solve the problems concerningrendering of professional consulting services and information supply by increasing the numberof these centers only formally. In order to solve the problem deeply the program in nationallevel on training of professional specialists should be developed. It is important to create thenetwork of business consultants in national level and ensure the activity of this network on thebases of business centers’ resources established in the regions.The development of distributing, franchising, dealer services, establishment of businessincubators and free economic zones will assist in strengthening process of SME supportinfrastructure.5.3.4 Financing Start-upsThe key roles of the state in financing and investment support for SME development inthe country are to develop the state guarantee for investment, form beneficial tax system,broaden credit base of SME, expand opportunities of attraction investment resource in SMEsphere, etc.The SME sector in Azerbaijan is mostly financed by the local investment sources. Themain source of financing is the National Fund for Support to Entrepreneurship (NFSE). The fundprovides SMEs with the privileged credits. Every year USD 100 million are allocated by thestate budget to the Fund and these credits are distributed between SMEs with 7% rate a year.108