SMB

We believe Azerbaijan’s socio-economic development is closely linked with entrepreneurship and its future development!

Within the framework of COP29, a panel discussion was held on the topic “The Role of SMBs in the Green Economy” KOBİA and the "Invest Bulgaria" Agency to collaborate Within the framework of COP29, the documents for collaboration were signed to support the green transition of SMBs Representatives of the International Trade Centre (ITC) paid the visit to "Baku SMB House" A conference was held regarding the presentation of unified platform and the national standard for ESG A national standard on Environmental, Social, and Corporate Governance (ESG) has been adopted "KOB FEST" exhibition-sale fair held in Khachmaz A business plan – the key to successful and sustainable business "From Us to Business" startup competition is underway Meetings with entrepreneurs were held in Jalilabad and Goychay

KOBIA held a briefing on the results of 2020 01.03.21

On March 1, the Small and Medium Business Development Agency (KOBIA) held a briefing on the results of its activities in 2020.Orkhan Mammadov, Chairman of the Board of KOBIA, made a presentation on measures taken by the Agency over the past year and plans for the future.

It was noted that 2 out of 7 regulatory legal acts prepared at the initiative of SMBs last year have already been approved as part of the participation in the formation and regulation of a unified state policy in the field of SMb. The Agency submitted commentary on 86 drafted regulatory documents.

To study the needs, challenges and proposals of small and medium-sized businesses, 23 surveys were conducted with the participation of 7722 small and medium-sized enterprises covering the city of Baku and regions of the country in the following areas: Legislation and regulation in the field of entrepreneurship, import-export operations, usage of support mechanisms, impact of the COVID-19 pandemic on business, etc.

In 2020, the Agency received 3,187 complaints from citizens, of which 890 concerned with the protection of the interests of small and medium-sized businesses. 28% of appeals were resolved within the framework of the state-business and business-business platforms, 54% received relevant explanation on the requirements of the legislation, 11% were sent to other specialized departments, etc.

The Organization for Economic Co-operation and Development (OECD) Report on the 2020 SME Policy Index, which covers 2019-2020, shows progress on 9 out of 12 criteria for Azerbaijan. It should be noted that the Small and Medium Enterprise Policy Index, compiled by the OECD with the participation of the Eastern Partnership countries since 2012, is crafted on the basis of 12 areas, 33 sub-areas and about 500 questions.

In order to improve the quality of services provided to entrepreneurs, the first small and medium-sized business house (KOB) was launched in Khachmaz in February 2020. Last year, the Khachmaz House of SMEs provided 20,759 services to enterprises, of which 95% were state (“G2B”) and 5% were business businesses (“B2B”). The level of satisfaction with the services rendered is 98%. Currently, Khachmaz House of SMEs provides about 150 “G2B” services from 9 government agencies and about 100 necessary “B2B” services from 8 private companies. In the coming days, it is planned to open a small and medium-sized business house in Yevlakh. Work is underway to organize the Baku House of Small and Medium Business.

Measures to protect the interests of entrepreneurs, train them, expand the SMB Friends network, which provides them with local support and services for the implementation of investment initiatives, continued in 2020 4 last year, bringing the total number of SMBs Friends to 25 in total. In 2021, it is planned to expand the SMB Friends network in the regions of the country.

To increase the level of knowledge and skills of small and medium-sized enterprises, inform them, in 2020, 4 centers for the development of small and medium-sized businesses (KOBİM) were opened in Baku, Sumgait, Khachmaz and Yevlakh. Last year, KOBIMs conducted about 100 trainings and about 2,500 hours of consulting services are provided, which were used by about 1,200 SMBs, start-ups and start-ups. All services provided by development centers (training and consulting services, development of business plans, networking, access to financial resources, etc.) are free of charge. Last year, a website for small and medium-sized enterprises was launched - www.kobim.az.

The joint German-Azerbaijani program for professional development of managers in the business community of Azerbaijan, implemented by small and medium-sized enterprises and coordinated by the German Society for International Cooperation (GIZ) with the aim of gaining international experience, has trained 29 entrepreneurs in 2020 and 451 entrepreneurs and managers in total.

Based on the goals set last year, the agency also supported the attraction of investments to the regions of the country. Support and services were provided by KOBIA on the basis of foreign investments, for the activities of a tobacco enterprise in the Sinjan village of the Oguz region, the creation of a new tourist complex in Astara, the start of the production of lavender tea by entrepreneurs of the Lankaran and Gabala regions, etc.

In 2020, the Agency also informed SMBs about the available financial resources and access to them. In addition the agency also assisted SMBs by linking them with relevant organizations. With the participation of the Central Bank, the Association of Banks of Azerbaijan and other financial institutions, a platform was created to facilitate and coordinate SMBs' access to financial instruments and mechanisms available in the financial market. Discussions are held regularly within this platform.

Following the decision for “Financing Education, Science, Research and Support of Projects Related to the Development of Micro, Small and Medium Enterprises", approved by the Cabinet of Ministers dated September 30, 2020, financing of micro, small and medium entrepreneurship projects has begun. The agency announced a competition and is currently accepting applications for participation. Each project funded within this competeition will recieve not more than 20,000 manats.

Given the restrictions on exhibitions due to the pandemic in 2020, the agency supported participation of micro and small entrepreneurs in several specialized exhibitions at the beginning of the year. At these exhibitions, SMBs presented their products and services, expanded sales opportunities and established new business relations.

To stimulate the production of competitive products, the agency supported 7 internal market studies based on requests from SMBs and continues to do so presently.

SMBs also actively participated in government support measures for SMBs operating in pandemic-affected areas and, SMBDA within its mandate supported SMBs affected by the pandemic.

In 2020 - 7 young people who became “SMB volunteers” in the “Year of Volunteers” were hired by the agency. With the support of SMBDA, a book titled “Own / Volunteer Guide” was published in 13,000 copies and distributed free of charge. To date, more than 200 young people have taken part in volunteering at KOBIA.

To develop social entrepreneurship, KOBIA has implemented various activities and projects in cooperation with relevant government agencies and the private sector last year. To date, including 2020, about 400 citizens have used the agency's support and services to join the self-employment program. With the support of SMBDA, two business and social enterprises were launched in Gobu Park #3 in 2020. At the same time, within the framework of the “Prosperous Absheron” project, support was provided to low-income families in obtaining additional income and developing family farms.

The event was concluded with a questions and answers sessions with media representatives.