Study of Small and Medium Enterprises in Azerbaijan - IFC

going in the opposite direction. In this case, the inspection would take a formal course
and entrepreneurs estimate that the end result would be more costly for them.
View from an entrepreneur:
“Why do I need the MED representative? I run the risk of paying even higher fines or
making a greater informal payment. Besides, even the inspector, whom I know, will punish
me by making me pay higher bribes on another occasion. Therefore, it only makes
sense that we complete this process as soon as possible with as little external interference
as possible.”
6.5 Inspections and regular visits – different concepts
for the entrepreneur
Business inspections materialize in different forms and are formally known by a
variety of names, such as: business review, on-site check, investigation, control, or
monitoring, yet all practically suggesting – inspecting public officials checking on the
business on the spot.
The survey shows that most entities in Azerbaijan are subjected to inspection one way
or another. Further analysis reveals that approximately 20 percent of all enterprises
do not undergo inspections. However, the in-depth interviews with these enterprises
go to show that every month business are still inspected in one or more of several
monitoring formats as described above.
View from an entrepreneur:
“For me on-site checks, monitoring , investigations all represent inspections of some sort.
Except by calling it different allows the inspector not to formally enter it in the book of
registration records, and can come to my company without a MED representative.”
According to the in-depth interviews, the total number of these visits equals approximately
six per month, which amounts to 72 visits per year per each business. Thus,
the number of inspections by state agencies equals about 80 visits per year for any
enterprise.
Aze r b a i j a n Bu s i n e s s En a b l i n g En v i r o n m e n t Pr o j e c t 105