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Журнал «Интернаука» № 6 (<strong>40</strong>), 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. 63
Журнал «Интернаука» № 6 (<strong>40</strong>), 2018 г. Figure 1. The share of small business entities in% Source: www.stat.gov.az The National Fund for Entrepreneurship Support has been created in our country to create favorable conditions for small entrepreneurship assistance programs, organization of implementation of these programs, and access to financial resources for small entrepreneurship entities. The Statute of the Fund was approved by the Decree of the President of the Republic of Azerbaijan dated August 27, 2002, No 779. The following provisions have been defined as the objectives of the Fund: Take measures to create financial support for entrepreneurship development in the Republic of Azerbaijan; to promote the economic policy of the state on the basis of attracting and rational use of financial resources for the purpose of promoting entrepreneurship, especially small entrepreneurship; to fund programs for entrepreneurship development; provide financial support for the implementation of investment projects and programs related to the priorities of the economy; to participate in the development and implementation of sectoral and regional programs and investment projects that promote entrepreneurship, healthy competition and commodity market, creation of new jobs; The main directions of the use of the National Fund for Entrepreneurship Support are [5]: - Establishment of large breeding cattle breeding complexes for breeding and milking; Creation or rehabilitation of modern poultry farms; creation of logistics centers (storage, transportation and sale of food and non food products); - establishing enterprises for processing fruit and vegetable products meeting modern requirements; Creation of large grain or seed farms; Creation of oily plants planting and processing facilities; creation of mixed feed production facilities; Creation of modern greenhouse complexes; establishment of intensive gardening (grape, apple, pomegranate, etc.) or cereals; Creation of intensive viticulture farms and grape processing facilities; creation of modern bakery production facilities; Establishment of other industries (light, construction, chemical, mechanical engineering, etc.); development of small entrepreneurship (including youth, women, people with disabilities and IDPs). In 2016, the Foundation provided entrepreneurs with 32 million 506 million manats, and preferential loans. In 2016, the funds allocated to the 2427 projects provided by entrepreneurs created opportunities for the creation of 8,106 new jobs (Table 1). Areas of economics The number of projects Special weight ( %) Amount of loan (thousand AZN ) Special weight (%) Number of new jobs to be created (people) Production and processing of various industrial products 121 4.9 32506.3 17.2 1112 Agricultural products processingı 12 0.5 22542 11.9 674 Production of agricultural products 2336 94.3 120876.8 63.8 5213 The development of service brunches (infrastructure) 8 0.3 13495 7.1 1107 Total 2477 100 189420.1 100 8106 Concessional loans granted to small entrepreneurship subjects by the National Fund for Entrepreneurship Support under the Ministry of Economy and Industry of the Republic of Azerbaijan in 2016 Source: www.anfes.gov.az 1 AZN=0.59$ USD 1AZN= 33.30 RUB Note: Exchange rates as of October 2017. We believe that the specific weight of the oil factor in GDP development at the present stage of the Azerbaijani economy should be reduced to the non-oil sector development and the optimum level of government support for entrepreneurial activity in the 64
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