Study of Small and Medium Enterprises in Azerbaijan - IFC

Expected impact
When specifying a clear basis for introduction of new licenses, the government will
be able to prevent the introduction of licenses that are not in line with the principles
of a market economy. This could in turn reduce expenses of entrepreneurs and foster
rapid development of priority sectors for the country.
4.5.3 Eliminate the discrepancy between state-owned
companies and private enterprises when entering into
licensable activities
Eliminate the discrepancy between state owned companies and private enterprises
when entering into licensable activities related to allocation of scarce resources.
Expected impact
The impact of the reform would be a more transparent management and allocation
of scarce resources between the state-owned companies and private enterprises based
on bona fide competition.
4.5.4 Ensure that all licenses are issued for same period as
provided for by the Licensing Rules
This step can prevent cases when entrepreneurs are able to start licensable activity
based on oral and discretionary permission of license issuing official. In addition,
lifelong issuance of licenses may be considered, while allowing specific short-term
activities to be regulated through permits instead.
Expected impact
This reduces official and unofficial payments, as well as time spent for renewal of
licenses. This in turn can lead to increased profits and more taxes paid to the state
budget.
4.5.5 Increase legal awareness of licensing procedures among
entrepreneurs
Increase the legal awareness of entrepreneurs through:
• Simple brochures distributed to entrepreneurs;
• Clear procedural maps, available in issuance offices;
• Seminars, training, and informational roundtables aimed at increasing dialogue
between the private sector and government;
• Public service announcements run on television and focused on presenting
information on procedural changes.
Expected impact
• Reduced time to be spent by entrepreneurs for dealing with the licensing
procedures;
• Reduced financial and human resources of entrepreneurs for dealing with the
licensing procedure;
• Higher profits for entrepreneurs and increased tax revenues for the government.
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St u d y o f Sma l l a n d Me d i u m Ent e r p r i s es in Az e r b a i j a n