Click here for search results
Fostering entrepreneurship in Azerbaijan, Volume 1
 
Author:Kuriakose, Smita; Country:Azerbaijan;
Date Stored:2013/09/16Document Date:2013/09/04
Document Type:PublicationSubTopics:Environmental Economics & Policies; Access to Finance; Banks & Banking Reform; Microfinance; E-Business
ISBN:978-1-4648-0067-2Language:English
Region:Europe and Central AsiaReport Number:81048
Collection Title:Direction in development : private sector developmentVolume No:1

Summary: A dynamic and vibrant private sector is crucial to economic growth, with firms making new investments, creating jobs, improving productivity, and promoting growth. Entrepreneurial activity is pivotal to the continued dynamism of the private sector, as the generation of new businesses fosters competition and economic growth. This is particularly relevant for Azerbaijan, whose government faces a central challenge to create conditions that will facilitate growth in nonoil tradable sectors. The core objectives of Azerbaijan's development strategy are to diversify the economy away from the oil sector and sustain high employment and growth. Encouraging high-growth entrepreneurship can help Azerbaijan achieve these goals as it moves toward new opportunities in value added and tradable sectors. This study shows that high-growth entrepreneurialism is low in Azerbaijan and that innovative activity among firms is very low. Several factors hinder business growth and entrepreneurship: lack of competition, especially among smaller firms; financial systems that are not conducive to business development. Companies cite high interest rates and risk-averse lending policies as substantial hindrances to expansion. In addition, risk capital is in short supply; and lack of industry-relevant skills. The government could play an important role by removing bottlenecks that impede entrepreneurialism in the general business environment as well as by designing new financial policy instruments that foster entrepreneurship and innovation. In doing so, the government needs to exercise care that the design and management of these instruments prevent capture or corruption and promote efficiency. Lack of competition is an issue in Azerbaijan, particularly for Small and Medium Enterprises (SMEs), which face uneven treatment within the enterprise sector.

Official Documents
Official, scanned versions of documents (may include signatures, etc.)
File TypeDescriptionFile Size (mb)
PDF 95 pagesOfficial version*6.65 (approx.)
TextText version**
How To Order

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.
** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.



Permanent URL for this page: http://go.worldbank.org/42SAEAC460