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Журнал «Интернаука» № 6 (40), 2018 г.
parliament, turns into a turning point in the
implementation of the necessary state policy and
purposefully coordinated measures in the field of
entrepreneurship on one hand and on the other hand,
this legal document proves that the state measures for
the development of small entrepreneurship are one of
the main directions of the economic policy of the
Azerbaijani state, leaving the framework of the activity
of this or that state body. Today, entrepreneurial activity
in the Republic of Azerbaijan, including its regions, is
based on the relevant legislative framework, which
focuses on the solution of financial problems of
entrepreneurs, increase of state financial assistance to
entrepreneurship, simplification of business start-up
terms, improving the business environment in the
country, and, ultimately, according to which the
constant improvement of entrepreneurship in the
republic is ensured in a dynamic and rapid development.
In this regard, decrees and resolutions given by the
President of the Republic of Azerbaijan in particular,,
"On Additional Measures in the Field of Public
Financial Support to Entrepreneurship" (March 1,
2005), "On the Rules of Using the National Fund for
Entrepreneurship Support" (December 28, 2006) (April
30, 2007), "On Measures to Ensure the Organization of
Entrepreneurship Activity by One Window" (October
25, 2007) and others are of great importance. State
Programs for Socio-Economic Development of the
Regions of the Republic of Azerbaijan in 2004-2008
and 2009-2013 prove that this sector of
entrepreneurship is highly valued in the country's socioeconomic
development strategy.
The experience of countries with developed and
transformation economies to encourage
entrepreneurship shows that there are a number of
common areas that are the same for all countries. For
this purpose, state prepares complex programs for stateowned
purposes, carries out its resource provision and
uses such economic methods and means like legislative,
tax, customs, credit, state order, subsidies, prizes,
guarantees, information, marketing, regulation of the
financial market and bankruptcy. As the market
relations develop, forms and trends of state regulation of
the economy also change, primarily direct and
administrative, and later economic and indirect
regulation. In each country, however, this policy is
shaped by the influence of a number of factors,
primarily it includes the level of market relations,
realistic experience in the field of entrepreneurship, the
degree of ownership of the country's economic life, the
state of the country's economic resources, the direction
of economic reforms, etc.
In a number of countries where market relations
exist, in order to maintain positions in the market by
state-owned enterprises state acts as a buyer of some of
their products, returning a portion of their economic
activity costs. One of the most important areas of
entrepreneurship stimulation is the provision of various
economic assistance to the priority directions of
business activity for each specific period. Hence, these
directions should be predetermined by the state and
include specific areas of economic activity, economic
regions, goods and services that need to be developed
for a specific period of time.
Research shows that small and medium-sized
entrepreneurs should be organized on the basis of added
values that can give priority to government support for
entrepreneurship in the new stage of development of the
country's economy. Small businesses operate in
complex market conditions and risk situations, so the
sustainability of their activities often depends on the
level and forms of government support. Finally,
government support for small businesses, in their
operating conditions, balances medium and large
enterprises' business environment, by ensuring equal
working conditions for each of them. Practice shows
that in the early days of such corporations, financial
assistance provided by the government such as tax,
credit go parallel to non-financial aids, and sometimes
overcome them. In addition, as the enterprise's level of
competitiveness and its position in the market increases
non-financial aid goes to the fore. At present, in the
developed market countries a number of tax incentives
are imposed by the state for many economic entities that
help small businesses as well as for small
entrepreneurship assistance funds, investment and
leasing companies, credit and insurance companies,
leasing companies and others. Undoubtedly, this
experience of world countries in tax policy should not
be ignored.
Another aspect of state support for small and
medium enterprises is related to the increase in
investment activity of business entities. In this case, the
government's credit concessions should be applied to
businesses that have a more effective and realistic
market prospect, but which are characterized by a weak
investment base, as well as those with insufficient
funding. Research shows that the dynamics of the
development of small and medium-sized businesses in
Azerbaijan's economy has increased slightly in recent
years, but has not reached an optimal level. Naturally,
according to the agility and measurement criteria, small
entrepreneurship entities act on a positive scale along
with the promotion of the economic environment, but
this tendency is unequivocally proportionate to all
sectors of the economy. Research shows that small
businesses are rapidly developing in trade and public
catering services. In terms of innovation capabilities,
small entrepreneurship subjects have no high potential,
but the importance of these economic entities should be
highlighted in terms of their contribution to
employment.
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