The to secure state support for entrepreneurship. Apparently,

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”.