Alternative mechanisms for SMEs financing discussed
By Abdul Kerimkhanov
As a legal entity under the Ministry of Economy, the Agency for the Development of Small and Medium Enterprises (SMEs) is authorized to support the development of SMEs in Azerbaijan by providing them with a number of services.
A round table has been held at the Agency, where alternative financing mechanisms were discussed.
Representatives of the Ministry of Finance and Taxes, the Financial Markets Supervision Chamber and the Central Bank discussed government support for financing SMEs and the potential for alternative financing.
The participants were presented studies within the framework of the project of technical assistance from the Islamic Development Bank entitled “Development of the legal framework for Islamic banking”.
The main objective of the project, carried out by a consortium of international Islamic Finance Advisory and Assurance Services (IFAAS) and local EKVITA Consulting, is to attract alternative investments and financial instruments, promote the development of banking, microfinancing, securities market and insurance market, create conditions for providing the local market with new financial products and services, for new opportunities for cooperation between companies operating in finance sphere.
Foreign experts made presentations on alternative financing mechanisms.
The “Strategic Road Map for the Production of Consumer Goods at the level of SMEs in Azerbaijan” proposes the expansion of alternative financing mechanisms and conducting research for this.
The mission of the Agency for the Development of Small and Medium Enterprises is to increase the efficiency of small and medium enterprise system regulation, ensure a variety of support mechanisms and entrepreneurs’ smooth access thereto, achieve sustainable SMEs sector development and its increased contribution to the national economy. The Agency’s main target is to fulfill an important mission of being a friend of entrepreneur.
While ensuring proper regulation of SMEs’ activity, the Agency’s goal is to use a flexible control system, broadly implemented in this area, in order to meet modern requirements in compliance with international experience, effectively coordinate mechanisms to increase the contribution and share of micro, small and medium-sized businesses in the national economy.
The goals also include boosting SMEs’ competitiveness, presenting them with broader opportunities to access financial resources, improving mechanisms to provide them with institutional support, coordinating the activities implemented by public and private entities in this area, establishing favorable business environment to ensure development of entrepreneurship in the country’s regions and attracting domestic and foreign investments to this area.
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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94
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