RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

Government support for entrepreneurship: case of Azerbaijan
Elvin Alirzayev 1 , Odiljon Abdurazzakov 2
1,2
Qafqaz University, Azerbaijan
1
eelirzayev@qu.edu.az
Abstract: Azerbaijan has experienced a significant economic growth over the last decade, mainly thanks
to natural resources. The government of Azerbaijan has been taking serious measures to diversify its economy
and to stimulate entrepreneurship to ensure sustainable economic growth. This paper analyzes the latest
developments in the entrepreneurship environment in Azerbaijan with a focus on financial, legal and
organizational support for entrepreneurship in the country. The impact of the government support for
entrepreneurship is examined and areas for further actions are highlighted in the article. Concluding remarks
and recommendations are given in the conclusion.
Keywords: entrepreneurship, Azerbaijan, SMEs, government support
Introduction
Development of entrepreneurship is essential to economic growth in every country. New
and sustainable businesses are important for the continued dynamism of the private sector. Like
other emerging economies, this notion holds true for Azerbaijan, a country with rich natural
resources, but has been taking measures to diversify its economy. Over the past decade, Azerbaijan’s
economy was one of the fastest growing economies in the world mainly thanks to
extraction and export of oil. The share of oil industry in the national economy increased almost
two fold from 31.7% to 61.8% between 2000 and 2007 (Kuriakose, 2013; Hasanov, 2013).
Although the boom of the oil sector led to significant increases in government spending
on infrastructure, education, healthcare and other important sectors, the government has realized
the importance of developing non-oil sectors to ensure the sustainable growth of the
national economy. Although the share of oil sector counted for more than half of GDP between
2005-2012, since 2012 share of non-oil sector in GDP has surpassed the oil sector.
In order to develop non-oil sector, the government of Azerbaijan has been taking measures
to stimulate and support entrepreneurship. Emerging economies in the post-soviet region
try to foster economic growth through entrepreneurship as an important element of sustainable
growth. Research is in consensus on the role of entrepreneurship as a catalyst for economic
growth (Audretsch & Thurik, 2001; Carree & Thurik, 2003), as well as national