TODAY.AZ / Business

New categories of entrepreneurship approved

25 December 2018 [16:23] - TODAY.AZ

By Azernews


By Leman Mammadova

Azerbaijan established new category for micro, small, medium and large businesses.

The relevant document was approved by the Cabinet of Ministers of Azerbaijan.

According to the decision, "Criteria for the division of micro, small, medium and large entrepreneurship subjects" were approved to ensure fulfillment of Article 1.2 of the Presidential Decree dated February 5, 2018 (Amendments to the Law of the Republic of Azerbaijan "On Entrepreneurship Activity" on Approval of Criteria for Division of Micro, Small, Medium and Large Entrepreneurship Entities).

Previously, the categories of entrepreneurs in the country were divided into small, medium and large enterprises, the new category includes also the micro businesses which covers companies with a staff of one to ten people and an annual income of up to 200,000 manat ($ 117 682).

The criteria for staff size and annual income for each category have also changed.

Earlier a small business meant a company with a staff of less than 25 people and an annual income of up to 125,000 manats ($ 73 551). Now these figures are 11-50 people and 200,000 - three million manats ($ 117 682 - $ 1.77 million), respectively.

The category of medium-sized businesses includes companies with a staff of 51-250 people (previously 25-125 people) and annual income of 30 million manats ($ 17.65 million), the category of large enterprises - with a staff of over 251 people (previously more than 125 people) and annual income over 30 million manats ( over $17.65 million).

Micro entrepreneurial activity does not cover vast area. Micro entrepreneurship entities are the ones that cannot use the general financial services based on their financial status. This type of entrepreneurship is considered a common form of employment in developing countries.

In December 2017, the Agency for Small and Medium Business Development of Azerbaijan was established on the basis of the decree on improvement of management in the field of small and medium-sized businesses signed by President Ilham Aliyev.

Small and medium-sized businesses play an important role in development of the country's economy.

The share of small and medium-sized enterprises (SMEs) in Azerbaijan’s foreign trade is planned to increase to 40 percent after 2025. The entrepreneurs have been exempted from inspections until 2021, also the list of types of entrepreneurial activities that require licensing has been greatly reduced, the electronic portal for licenses has been created, which allows for obtaining a license in electronic format.

One of the important projects of the Agency is the creation of the “Registry of SMEs” and raising awareness about various state information resources on the basis of a single database on SMEs.

The EU will allocate a grant of one million euros to the Agency for Development of SMEs.

The agency is developing its activity by expanding cooperation. This year, the Agency for the Development of SMEs of Azerbaijan signed relevant documents with EBRD and BP to expand cooperation.

Memorandum of understanding was signed between the State Customs Committee and the Agency this August. The Agency also signed a memorandum on cooperation with Azerbaijan's Ministry of Labor and Social Protection of Population as of September 2018.

URL: http://www.today.az/news/business/177454.html

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