The changes that marked the end of the XX century had a great impact on modern business entities.
New global markets have become highly competitive, with demand for continual adjusting the strategy and structure of the organization to external business environment. Therefore, the main challenge that organizations of XXI century are facing is how to avoid threats of the modern environment, and take advantage of the benefits it brings. After the long period of USSR supremacy, Azerbaijan economy confronted dramatic difficulties and development process took considerable time.
That’s why stimulation process of entrepreneurship was not prioritized for a long time. However, needless to say, Azerbaijan is blessed with abundance of both natural and human resources; thus great opportunity for the development of entrepreneurship exists. Despite of crucial implementations in economic sphere, currently, small entrepreneurs face multiple challenges and burdens in Azerbaijan. First of all, the country lacks a single strategy on small entrepreneurship sphere. It is obvious that, complexity of legal requirements, reporting affect people’s perception adversely about starting business activity. Correspondingly, some portion of potential entrepreneurs refine themselves from establishing small business.
In order to tackle this problem, the government needs single and unified system to control all these activities and reporting related small businesses. Till now, Azerbaijan government has undertaken a number of steps to liberalize entrepreneurship through simplifying procedures and rules regulating this activity. The mechanism has been launched to secure state support for entrepreneurship. Apparently, different ministries and other state agencies deal with business units.
For example, the Ministry of Taxes acts as the sole body of registration, the Ministry of Economy Development secures access to financial sources and provides technical support, and the Ministry Agriculture carries out subsidization of small agricultural businesses. Predominantly, functioning of these entities and “Fond of Support to Entrepreneurship Activity” should be transparent and effective. Government subsidies which are given as a support to small entrepreneurship should be spend transparently without any flaws or deviations.
Moreover, illegal inspections should be prevented. Azerbaijan government should also take deliberate steps to invest heavily in development of human capital by increasing funding for education, entrepreneurial training, and development in technological knowledge and skills in order for human capital to become an advantage for development as it has turned out to be for China and India. Furthermore, to equip Azerbaijani youths, entrepreneurship courses should be included in the curricula of secondary schools, colleges of education, polytechnics and universities, not theoretical, but in a more practical way incorporating issues young entrepreneurs would encounter in business. Study modules could cover various aspects of business from opportunity identification, idea/plan development; fund sourcing, start-up and running/managing a business, record keeping, customer relations, marketing and so forth. Another difficulty that small entrepreneurs confront is access to financial support. It cannot be denied that, risk capital available for small businesses is very limited and bank borrowing is expensive. As small entrepreneurshipactivities are seen to be the driving force behind growth and transformation, these should be encouraged through favorable investment environment and supportive government policies.Therefore, number of projects as “Ideya Qazandi” or “Youth Inc.
” should increase in order to stimulate entrepreneurship activities in Azerbaijan. Furthermore, responsibilities of” ABAD” which is one of the most successful projects in entrepreneurship sphere of Azerbaijan can be enlarged by government. According to the Azerbaijan Ministery of Economic Development data, the growth was observed in terms of increasing number of small businesses in Azerbaijan after establishment of “ABAD”.