In line with the criteria for the classification of business entities, the growth and increasing turnover of small and medium-sized enterprises (SMEs) demonstrate their sustainable development and expanding role in the economy, as they effectively take advantage of the opportunities created for them.

The purposeful state policy pursued in our country for the development of entrepreneurship, together with the support measures and incentives provided to SMEs, has yielded positive results. In 2024, compared to the previous year, the number of SMEs that grew and expanded their turnover according to classification criteria increased significantly.

Thus, in comparison with 2023, the number of SMEs that grew under the classification criteria rose by nearly 14% last year. Meanwhile, the turnover of SMEs increased by almost 10% in 2024 compared to the previous year, exceeding 48 billion manats. The growth of both indicators reflects the sustainable development of SMEs and their rising share in the national economy, achieved through the efficient use of the opportunities provided and the favourable business environment in the country.

It should be noted that SMEs account for more than 99% of entrepreneurs in Azerbaijan. According to the “Criteria for the Classification of Micro, Small, Medium and Large Business Entities” approved by the Decision of the Cabinet of Ministers of the Republic of Azerbaijan dated 21 December 2018, whether an entrepreneur qualifies as a micro, small, medium, or large business is determined on the basis of the average number of employees and annual income. A micro-entrepreneur is defined as a business with up to 10 employees and an annual income of up to 200,000 manats. A small entrepreneur is a business with 11–50 employees and an annual income of up to 3 million manats. A medium entrepreneur is defined as a business with 51–250 employees and an annual income ranging between 3 million and 30 million manats.

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