In Azerbaijan, 99.7% of business entities are micro, small and medium-sized business (SME) entities. Worldwide, 9 out of every 10 operating enterprises are SMEs. On 27 June – International Day of Micro-, Small and Medium-sized Enterprises, the important role played by SMEs in economic growth, employment, innovation and sustainable development once again comes into the focus of attention.

The International Day of Micro-, Small and Medium-sized Enterprises, established by the resolution adopted by the United Nations General Assembly in 2017, aims to draw attention to increasing the contribution of SMEs to accelerating economic development, creating new jobs, promoting innovation and achieving the Sustainable Development Goals.

At present, approximately 90% of operating enterprises in the world are SMEs. They provide more than 70% of global employment and constitute the main share of newly created jobs in many countries.

At a time when digital transformation, the green economy and technological innovations are rapidly changing the business environment, SMEs serve as one of the most dynamic segments of the economy owing to their flexibility, ability to adapt promptly to innovations and innovation potential. In Azerbaijan, SMEs are also one of the main pillars of the economy. They operate mainly in the fields of trade, transport and warehousing, tourism, public catering, industry, real estate, education and other fields, contributing to increasing the economic activity of the country, ensuring employment and developing the non-oil sector.

Entrepreneurs of the country, especially SME entities, are covered by extensive state support measures. Small and Medium Business Development Agency (KOBİA) promotes the establishment of new SMEs and the development of existing businesses through various support mechanisms and tools.

Thus, in 2018–2025, KOBİA carried out the following:

•        at present, 5 SME Houses (in the Cities of Baku, Ganja, Khachmaz, Yevlakh and          Shusha) and 1 Service Centre (in the City of Khudat of Khachmaz District) are          operating. During the respective period, nearly 1.5 million services were provided          to entrepreneurs at the SME Houses;

•        6 offices named "Friend of the SME" are operating;

•        grants exceeding AZN 2.2 million were allocated to 129 projects;

•        247 "Startup" Certificates were issued;

•        support was provided for the participation of nearly 2,000 SMEs in 82 exhibitions          and fairs;

•        aid was provided for the access of nearly 140 SMEs to trade networks;

•        70 domestic market studies were conducted;

•        more than 5,200 free-of-charge training sessions were conducted;

•        more than 93,000 hours of free-of-charge consulting services were provided;

•        nearly 2,800 business plans were prepared;

•        SME Cluster Company Certificates were issued to 3 commercial legal entities;

•        more than 700 sectoral meetings, awareness-raising events and public     discussions were organised.

As a result of these support mechanisms, a contribution was made to the establishment of businesses by thousands of entrepreneurs and the expansion of their activities, the creation and introduction of new products and services to the market, as well as to the growth of employment.

The development of SMEs is of significant importance in diversifying the economy of the country, increasing its competitiveness and ensuring sustainable economic growth. From this point of view, support for SMEs remains one of the priorities of economic policy.

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