Azernews.Az

By Ofeliya Afandiyeva

Azerbaijan ranks 24th among 141 countries for the “Financing of SMEs” (Small and Medium-sized Enterprises), according to the Global Competitiveness Index 2019 published by the World Economic Forum.

Thereby, in 2019, Azerbaijan ranked above such leading countries as Australia (32th place), Bahrain (33th place), China (34th place), France (38th place) with regards to Small and Medium-sized Enterprises.

Finland ranked 1st place for this indicator, and the Republic of Haiti stood on the last place (141st).

Azerbaijan left behind neighbouring Turkey (63rd place), Georgia (83rd place), Russia ( 118th place) and Iran (126th place).

Armenia ranked 69th in the Global Competitiveness Index and was 52nd in terms of Financing of SMEs.

Azerbaijan’s overall ranking in the Global Competitiveness Index was 58th out of 141 countries. So, the country climbed up 11 steps in 2019, 2.7 points higher (gaining 62.7 points).

Singapore led the with 84.8 points and is followed by the U.S, Hong Kong SAR, Netherlands, Switzerland, Japan, Germany, Sweden, and United Kingdom respectively.

Covering 141 countries, the Global Competitiveness Index 4.0 measures national competitiveness—defined as the set of institutions, policies and factors that determine the level of productivity and is compiled annually by the World Economic Forum.

Azerbaijan continues to enhance the role and competitiveness of small and medium-sized enterprises (SMEs) in the country's economy.

As a part of support to the entrepreneurs’ activities, the Agency for Development of SMEs has been operating in Azerbaijan since 2018. As a single structure with special powers, the Agency organizes, coordinates, evaluates and regulates the services provided by government agencies and organizations in this area through SME houses.

The main task of the Agency is ensuring the succession of reforms, improvement of the business regulation system, and application of effective coordination, enhancing the role and competitiveness of SMEs in the country's economy, as well as the compliance of the management system in this area with modern requirements.

In addition, the Agency established the Friend of SMEs offices in the country as a mechanism that helps to identify and implement initiatives of SMEs, realize their potential, provide them with support at all stages of their development and protect the rights of entrepreneurs.

The share of SMEs in employment in Azerbaijan was 76 percent last year, and in recent years, comprehensive work has been carried out for the development of SMEs. In particular, inspections of business entities have been suspended and the process of obtaining licenses has been simplified.

The share of SMEs in Azerbaijan’s foreign trade is planned to increase to 40 percent after 2025.