RESPONSIBLE ENTREPRENEURSHIP VISION DEVELOPMENT AND ETHICS

440 RESPONSIBLE ENTREPRENEURSHIP
the share of loans granted to medium scale entrepreneurs was 3.2% (10,294.5 thousand manats),
and share of large scale entrepreneurs was 76.3% (248336.5 thousand manats). Smallscale
projects accounts more, however take small portion of financing (ANFES, 2015).
Per Presidential Decree “On Government Support for Producers of Agricultural Products”
of January 23, 2007 half of the costs of entrepreneurs from agriculture sector on fuel, motor
oil and mineral fertilizers are covered by the government. Since 2005, main agricultural equipment
used for production are exempt from custom duties and VAT on import. Since 2011,
main seeds, fertilizers, animal breeds, equipment parts and modifications are also tax and dutyfree.
Since January 27, 2016 fee for services of completing custom declarations of goods and
vehicles is 50 manats (excluding VAT) after 70% discount (TREND, 2016).
Government offers subsidies of 50 manats for fuel and motor oil expenses per hectare of
crop areas excluding GDO production fields. 5.32 million manats subsidies have been given
to agribusiness entrepreneurs for seeds and sapling in 2015. Significant part (37.1%) of labor
force work in agribusiness: 92.3% of them are physical persons and family groups. It must
be noted that share of agriculture sector in GDP has decreased from 16.1% in 2000 to 5% in
2015. Government subsidies for agribusiness including for fuel and motor oil during 2007-
2014 made up 793,6 million manats.
Since 2005, “Aqrolizing” government open joint stock company sells agrimachines at
favorable terms, and since 2014 entrepreneurs get 40% discount. Entrepreneurs can get devices
for 10% initial payment and lising for 10 years from the company according to the government
decree. During 2005-2014, 17857 modern devices were concessionally sold valued 275
million manats. Besides, the company gives 80 manats per hectare for buying fertilizers at a
70% discount. For wheat production, per hectare irrigated land 40 manats is given as a subsidy.
Subsidies for agricultural production are limited to 10% in Azerbaijan, which is in line
with requirement for developing countries by WTO (Imamverdiyeva, 2015; Agrolizing, 2014).
Until 2015, Ministry of Agriculture of Azerbaijan Republic has given 645 million manat
subsidies to agricultural entrepreneurs (Imamverdiyeva, 2015). Ministry of Agriculture also
co-finances agricultural development projects. As a first phase of the program with 3 phases,
The Agricultural development and crediting project was carried out during 2000 – 2006 valued
33.65 million USD, 30,0 million USD of which was contributed by the World Bank and
3,65 million USD by Azerbaijan Government. As second agriculture investment projects was
worth 53,64 million dollars, 30 million USD of which was funded by European Bank for
Reconstruction and Development, 20 million USD by Azerbaijan government and 3,64 million
dollars by beneficiaries during 2012-2017 (Agrocredit, 2014).
The Second Agricultural Development and Credit Project was implemented during 2006
– 2012, and covered all the regions of the country and valued 68,38 million USD. 30,8 million
USD of this amount was the share of World Bank (the amount of the credit increased
up to 0,66 USD as a result of the changes in SDR), 21,7 million USD was contributed by the
Azerbaijan Government, 1,6 million USD came through Japanese Grant, 9,56 million USD
came from Revolving fund (the funds transferred from the first phase of the project), 4, 69
million USD was contributed by the beneficiaries. The project consisted of “Agricultural Support
Services” (24,680 million USD), “Agricultural Business Services” (42.3 million USD)
and “Project Management” (1,4 Million USD) components. (Agrocredit, 2014).