The “Procedure for supporting the expansion of sales of products produced by micro and small businesses in retail chains” was approved by the Decree of the President of the Republic of Azerbaijan dated December 1, 2021.
This document defines terms and conditions for expanding sales of products manufactured by micro and small enterprises in retail chains operating in the country, including reimbursement of costs for arranging trading activity related to the sale of manufactured products. According to the Procedure’s requirements, the Small and Medium Business Development Agency of the Republic of Azerbaijan(SMBDA) was charged with taking necessary measures to encourage the sale of entrepreneurs’ products.
Commercial legal entities and individual entrepreneurs belonging to the category of micro and small businesses shall have the right to use support measures in the manner and under the conditions prescribed by the Law of the Republic of Azerbaijan “On entrepreneurial activity”.
Information on the points of sale leased by the Agency and not transferred to entrepreneurs for use, as well as those transferred for their use, is posted on the Agency's official website and existing information portals and regularly updated.
Support for the expansion of sales of products manufactured by entrepreneurs includes the lease of certain areas at retail facilities (sales shelves, counters, racks, etc.) by the Agency, arranging the Agency's stand with the lease of certain areas at retail facilities for the sale of entrepreneurs' products, and creating conditions for arranging sales exhibitions in places coordinated with local executive authorities.
Entrepreneurs’ products are placed in the points of sale based on their applications. The size of the retail space allocated to the entrepreneur is 50 (fifty) cm. The term for placing the products manufactured by an entrepreneur at the point of sale is 3 (three) months. Micro and small business entities shall pay to the Agency, respectively, 20 and 50 % of the rent paid by the Agency for the appropriate area. The number of points of sale leased by the Agency for a calendar year cannot exceed 10, and the annual rent for one leased point of sale cannot exceed AZN 20,000 (twenty thousand).
Applications of micro and small entrepreneurs shall be assessed according to the criteria prescribed by the Procedure; preference shall be given to entrepreneurs who meet more criteria.
Herewith, according to this Procedure, the Agency shall support the arrangement of trading activity at Points of sale. Support for the arrangement of trading activity at points of sale comprises paying part of the duties and commissions paid under official documents received by an entrepreneur to perform trading activity. The amount paid to each entrepreneur for arranging trading activity at a point of sale is 50 (fifty) percent of the costs associated with this work (but not more than AZN 1,000 (thousand)).
The aforementioned Procedure creates conditions for the access of micro and small entrepreneurs operating in the regions to the markets of the country’s capital and other large cities, bringing the products manufactured by micro and small entrepreneurs in line with the requirements of large retail chains (quality, packaging, design, etc.), expanding the availability of local goods for the population, and replacing foreign goods imported into the country with domestic products.
For more information: https://president.az/articles/54466
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