Unlike large enterprises, micro, small, and medium-sized business entities,that require relatively more support and sensitive approach- are unaware of where to turn to and how to apply so as to set up and consequently grow their businesses or else they would eventually end up turning to various agencies with regards to enterpreneurial activities of their concern.This resulted in a waste of time.
In order to improve public services for businesses, ensure easy and convenient access to these services, and enhance business satisfaction, Small and Medium Business (SMB) Houses were established within the structure of the Small and Medium Business Development Agency (KOBİA) under the Ministry of Economy, allowing entrepreneurs to access services in a single location.
The main goal of SMB Houses is to provide public ("G2B") and private ("B2B") services to entrepreneurs in a single space, adhering to the principles of efficiency, transparency, courtesy, responsibility, and convenience.
By providing necessary services in one location, SMB Houses not only save entrepreneurs time, but also slash operational costs. The transparent and efficient organization of services improves satisfaction of entrepreneurs, makes the service level measurable, as well as allows entrepreneurs to focus more on business development. Entrepreneurs can apply to SMB Houses for services essential for their business activities, such as registration of entrepreneurial activity, obtaining licenses, permits, and other necessary documents, development of business plan, access to preferential financial resources, tax, customs, utilities, banking, insurance, notary services etc. Although, there are three SMB Houses currently operating in Azerbaijan, located in Baku, Khachmaz, and Yevlakh, they serve not just these three cities, but also businesses from surrounding regions.
Azerbaijan’s Model Amongst the World's Leading Innovative Initiatives
Azerbaijan’s SMB House model has been recognized as one of the world’s leading innovative initiatives in business. The Research Center for Innovations in the Public Sector (OPSI), established in 2011 by the Organization for Economic Cooperation and Development (OECD) and recognized as a global forum supporting the implementation and promotion of advanced innovations in the public sector, has recognized Azerbaijan's SMB House model as one of the leading innovative practices and recognized it as an exemplary model.
According to Elmar Isayev, Head of the Secretariat of KOBIA, OPSI experts assessed the operation of Azerbaijan's SMB Houses as an innovative initiative among numerous applications from around the world: "The agency regards the integration and coordination of state and private sector services within a single space the SMB Houses as a unique model."Entrepreneurs, or those seeking to start up a business, can apply to SMB Houses for services related to business planning, starting a business, managing a business, and developing a business, provided by state and private entities. The center's information notes that entrepreneurs can benefit from the training and consulting services of the SMB development centers at the SMB Houses, as well as the resources of the Startup Development Center, as well as they can also easily and conveniently approach the SMB friends operating in these centers to get answers to their business-related questions.
The report clarifies reasons for the OPSI experts opting the SMB House model as a unique and innovative project. Thus, distinctive features of the model include comprehensive service provision supporting SMB development, effective coordination, a flexible approach tailored to needs, participation, and inclusivity. It states that SMB Houses provide a unique model that helps entrepreneurs save time and operational costs, and simplifies business processes based on the principle of a one-stop-shop for service delivery. SMB Houses also contribute to enhancing coordination between key government institutions and strengthening cooperation between the public and private sectors in the business ecosystem." SMB Houses provide high-level services to entrepreneurs from 9 a.m to 6 p.m five days a week.
In the first half of this year, the SMB Houses operating in Baku, Khachmaz, and Yevlakh rendered nearly 300,000 services to entrepreneurs. Of these, around 268,000 were rendered by state institutions, while over 32,000 were provided by private entities. During this period, entrepreneurs predominantly applied to SMB Houses for permit blanks of cargo transport, distinction marks, tachograph cards, certificates of origin, settlement of tax and customs issues, utility services, and more. The level of satisfaction among those who apply to SMB Houses is also measured to improve the quality of services.The satisfaction level of entrepreneurs benefiting from these services is rated at 98%.
Farhad Huseynzade, a representative of “Techno Park” LLC, applied to the "Baku SMB House" to obtain a certificate of origin from the State Service for Antimonopoly and Consumer Market Control. He expressed great satisfaction with the operation of the "Baku SMB House": "I come here frequently. The SMB House staff is always very attentive, and they respond to applications in a short time," he said, adding that SMB Houses will help accelerate the development of small and medium businesses in the country.
Entrepreneur Ilham Mirzayev, who works in the logistics sector, visited the SMB House to obtain blanks of permission. He was very satisfied with the high level of service provided: "Soon, I will need to send off trucks to Turkmenistan and Uzbekistan. I’m getting the required permit blanks from the relevant unit under the SMB House. Since the launch of the “Baku SMB House”, I’ve been applying this “house” and have been treated fairly so far. Our applications are processed in a short period of time, and we can get the permit blanks right on the spot. The process takes just 10-15 minutes. We are grateful for such excellent service.
"Rashad Manafov, who visited the "Baku SMB House" to obtain a "distinction mark," has been using the center’s services for almost two years. In his own words, though he has faced certain problems in the past obtaining the "Distinction Mark," he currently has no difficulties: "I received the mark without any difficulty, within 15 minutes, and without waiting in line. During the service, I only paid the state fee.
Ramiz Agayev, who used the service of State Tax Service at the "Baku SMB House," said: "This is the second time that I’ve used the services of the SMB House. The first time was for applying for a taxi license, and I was very satisfied with the service. The second time, I came for tax services, and again, I’m pleased with the result. I received high-quality service in a short time. I would like to see similar SMB service centers across entire Azerbaijan."
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