Study of Small and Medium Enterprises in Azerbaijan - IFC

In comparison, 74 percent of individual entrepreneurs maintain the Inspection
Registration Book, while 84 percent of SMEs maintain one on-site.
6.2 Inspection outcomes
It is important to view the possible outcomes of the on-site inspections in order to
analyze possible recommendations. However, many of the inspections are reported
not to result in any kind of formal sanctions: this is to say, the company operates
regularly and the inspection may not have been required. This brings into question
the purpose of such inspections and their frequency.
Chart 6.7
More than half of
the inspections
do not bear
consequences to
SMEs
Consequences after check-ups
57%
43%
Consequences took place
No consequences
To reveal a clearer picture about the low effectiveness of the existing system of
inspections, it is necessary to compare the indicators for the inspections of two groups
of enterprises: enterprises that faced consequences (in form of penalties or other
sanctions), and those with no consequences.
Chart 6.8
For the year 2007,
about 1 million
unsuccessful
inspections were
conducted
Average number
of inspections for
ones who had
them
15
10
12
10
5
0
Consequences
took place
No consequences
Based upon the research, in 57 percent of the enterprises, about 10 inspections
without consequences are conducted per year
96
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