Study of Small and Medium Enterprises in Azerbaijan - IFC

1. Methodology
1.1 Background
The survey of the business environment is a product of the IFC Azerbaijan Business
Enabling Environment Project. This national level survey of small and medium
enterprises and individual entrepreneurs in various sectors of the Azerbaijani economy
is the first of its kind to be implemented in the country. The survey was conducted
from Nov 2007-Jan 2008.
1.2 Purpose of survey
The main objective of the survey is to measure regulatory and administrative barriers
adversely affecting the growth, development, and operations of the private sector
in Azerbaijan. The empirical survey data and subsequent recommendations to
Azerbaijani state authorities are expected to stimulate the debate for reform of the
regulatory and administrative environment for the private sector in various procedures,
such as the followings:
• State registration of business units;
• State control and inspections over existing business units;
• Licensing of activities carried by business units that require special permission;
• Obtaining permits/approvals for launching and continuation of business
activities;
• Certification of products and services of existing business units;
• Import and export operations;
• Taxation;
• Analysis of the entrepreneurial financial indicators;
• Relations between private sector and financial institutions.
1.3 Sampling strategy
The survey used a probability-based sampling methodology in which the firms were
selected for interview according to a known non-zero probability. The major advantage
of this method was that from a sound sample, statistical inferences can be made about
a larger population (at national, regional or sector levels).
In order to make sure that the sample distribution was representative of the Azerbaijani
economy, the sample framework was based on the incidence and distribution of
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 27