One of the mechanisms providing on-the-spot support and services to entrepreneurs is the SMB Friend network of the Small and Medium Business Development Agency (KOBİA). Currently, SMB Friends operating across 40 cities and districts in the country render mobile support to entrepreneurs and those seeking to start business activities by being their local representatives. Questions of “vergiler.az” on this matter were addressed by Rauf Tagiyev, deputy head of the SMB Friend department of KOBİA.

- What is the SMB friend and what constitutes its main activities?

- By supporting the development of micro, small and medium businesses, KOBİA targets to enhance the role of SMBs in the country's economy, including their share in employment and exports, and reinforcing their competitiveness. In this regard, it is necessary to note that the Agency provides support for expanding the knowledge and skills of SMBs, accessing financial resources and markets, ensuring the protection of their legal interests, as well as plays a substantial part in improving the level of service. To achieve the above-mentioned goals, an extensive network of infrastructure such as SMB development centers, SMB houses and SMB Friend offices are operating in the cities and districts across the country. Among them, the SMB Friend network contributing to the public-private partnership, is of paramount significance. SMB Friend network currently operates in over 40 cities and districts across the country.

SMB Friends support the establishment of new micro, small and medium business entities in their regions of operation, development of existing businesses, realization of investment initiatives of entrepreneurs, and stimulate the implementation of potential investment projects through SMBs. The activities of SMB Friends involve supporting the protection of the legal interests of entrepreneurs and addressing the complications facing them, innovations in this field, existing state support mechanisms, including the services of KOBİA and facilitating to benefit from them, as well as connecting SMBs with public and private institutions.

Another important aspect of this activity includes surveys and monitoring. In close contact with entrepreneurs, SMB Friends also provide mobile services, understanding their development needs through surveys and other means.

- What measures are intended to be carried out to further expand the scope of the SMB Friend network?

- Since the first SMB Friend office started operating in Masalli district in 2019, the SMB Friend network has expanded to cover most economic regions of the country. Currently, 46 SMB Friend offices are operating in 44 cities and districts across the country including Baku, Sumgait, Ganja, Yevlakh, Mingachevir, Aghdam, Zangilan, etc. SMB Friend network expansion measures are underway. For instance, the SMB Friend window was launched at the State Services Center located in Agali “Smart” village in Zangilan district to provide the necessary support and services to small and medium businesses in the liberated territories after the 44-day Patriotic War. Meanwhile, among SMB Friends there are also those who participated in the Patriotic War. As of April 2023, SMB friends started operating in the Nakhchivan Autonomous Republic. Substantially, active SMB Friends offer services not only to the certain district or city, but also to entrepreneurs operating in surrounding districts.

In accordance with the Return plan, SMB Friends are expected to start operating in other cities and districts, including liberated territories in the near future. We assume that the expansion of the SMB Friend network will contribute to the establishment of new business entities, development of existing SMBs, as well as information work on existing state support tools for entrepreneurship.

- How do SMB Friends support the establishment of new SMBs?

- Conducting relevant research in this field before starting business activities, making preliminary decisions and setting goals accordingly, as well as developing a relevant plan to realize these goals are the basis of sustainable business activities. SMBs need to have a grasp of the required tools for the relevant field of activity, necessary financial means to obtain them and workforce with the appropriate qualifications. In addition, it gives a great number of benefits for SMBs over their competitors to have detailed information about the potential customers of the products and services to be offered, know them, analyse competing entrepreneurs offering products and services of similar kind, and make appropriate decisions in advance based on the information obtained. Our observations show that the mentioned aspects are not taken into account by a number of SMBs in most cases due to lack of information, lack of funds and other reasons. In this instance, the numerous free services offered by SMB Friends play a paramount role in the business development by facilitating the work of potential entrepreneurs. SMB Friends inform them about support mechanisms for the establishment of new SMBs, engage them in training to expand their knowledge and skills, as well as provide free legal assistance and consulting services for explaining legal procedures, developing relevant documents and obtaining permits. A number of important projects and events, over 40 projects in total, have been implemented through the SMB Friend network to date.

- As an active stakeholder of the platform of public-private partnership, how do SMB Friends organize their activities to this end?

- SMB Friend network regularly holds meetings with the attendance of relevant state agencies and business entities with the aim of establishing links between entrepreneurs, hear the challenges facing them and proposals given by business entities, and conduct discussions. With the attendance of relevant executive and local bodies, covering Baku and its districts in the past period, over 400 visual and online sectoral and educational meetings were held with the attendance of more than 15,000 entrepreneurs operating in agriculture, finance, tax, import-export, support for women's entrepreneurship, tourism and other fields. At these meetings, questions concerning the entrepreneurs are addressed on-site, requests requiring further research and proposals put forward are presented to the relevant institutions or coordinated.

- You mentioned that SMB friends study the development needs of entrepreneurs through surveys and other means. What are the outcomes of these surveys used for?

- Conducting surveys is primarily aimed at studying the entrepreneurs` challenges, needs and development trends, developing and introducing relevant proposals for the further improvement of the business environment. These surveys are carried out with the help of various tools, including professional companies and SMB Friends. Many surveys were carried out across the country through the SMB Friend network on  the identification of the training and qualified personnel needs of business entities in the past period, as well as the demand for ICT, study of challenges facing the entrepreneurs during import-export operations, assessment of the business environment and corporate governance in the country during the pandemic and post-pandemic period, development of promotion and marketing of traditional food products, exploring clustering opportunities and other aspects. The outcomes of these surveys have been presented accordingly.

 - According to the survey results, what do the needs of entrepreneurs mostly relate to?

- According to the survey outcomes, it is pertinent to note that the need for specialists who have a grasp of modern trends and possess knowledge and skills in the field of work constitutes the basis of educating entrepreneurs about support mechanisms, applied concessions and legal procedures, raising the level of awareness on the application of innovations and digital solutions. In addition, the entrepreneurs participating in the surveys report that loan interest rates are high, collateral security for lending causing setbacks in their funding especially in the regions.

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