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We believe Azerbaijan’s socio-economic development is closely linked with entrepreneurship and its future development!
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Effective recourse of entrepreneurship support 22.02.24
Effective recourse of entrepreneurship support

A single place where state and business services are provided for entrepreneurs and business startups in a centralized manner... Small and medium business houses (SMB houses) operating under the Small and Medium Business Development Agency (KOBİA) can also be referred in this fashion.

 

For a number of years, the work of SMB houses has significantly transformed the business services sector by improving the government services offered to businesses, making these services easily accessible, and establishing state-entrepreneur relations through more flexible and transparent mechanisms. Our understanding of "Baku SMB House" has improved tremendously as a result of our observations there, and we are now well acquainted with their operations. 

 

3 SMBs in the last 3 years

 

Firstly, let us highlight that one of the primary directions of the reforms conducted by President Ilham Aliyev is to improve the quality of state services offered to citizens, enhance their accessibility, as well as ensure their transparency and efficiency. Pursuant to the decrees of the President of Azerbaijan dated December 28, 2017 and June 26, 2018, the establishment of SMB houses also serves this purpose. Businesspersons are given the opportunity to apply to SMB houses for business registration, license, permit and other necessary documents, development of a business plan, access to concessional financial resources, tax, customs, public utilities, banking, insurance, notary and hundreds of other business services. Consequently, the key benefits of SMB houses are efficiency, time and cost savings, and the ability to gather business services in single location. "Plan a business," "Start a business," "Run a business," and "Develop a business" are the four broad directions in which entrepreneurs in SMB houses receive services from public and private institutions.

Currently, three SMB houses are operating in the cities of Baku, Khachmaz and Yevlakh.  Entrepreneurs in Khachmaz have been benefiting from the services of the first SMB House since February 2020, while the one in Yevlakh has been in use since April 2021. The third SMB house - "Baku SMB House" was inaugurated in January 2023 with President Ilham Aliyev in attendance. The first two floors of the three-story building are designated to serve entrepreneurs.

 

One of the guiding principles of the operations conducted by SMB houses is the high standard of courtesy extended to citizens. It is no coincidence that the citizen was listened to in a very polite manner at the information corner at the entrance to "Baku SMB House", and then, accompanied by a volunteer, he was transferred to the window of the state institution he applied. Before visiting the SMB House, entrepreneurs utilizing this service are offered to take an online queue using the "SMB queue" application.

 

This was the start of our conversation with the director of "Baku SMB House" Zaur Gasimbeyov. According to him, the satisfaction of business people is one of the key concepts of SMB houses, along with the provision of all state services in one place. Currently, the rate of satisfaction of entrepreneurs with the services offered in SMB houses is higher than 98 percent.


Prompt and courteous service

 

We were able to get acquainted with "Baku SMB House" closely. According to Zaur Gasimbeyov, on the first two floors of the building, entrepreneurs are provided with government-to-business (G2B), business-to-business (B2B) and other services: "According to the concept of the SMB house, the "Baku SMB House" also offers business entities business services by state and private institutions. In total, over 300 services (G2B) are offered to entrepreneurs by 35 state institutions at "Baku SMB House". These include business registration, tax, customs, transportation, food safety, license, permits, certificate of origin, investment promotion document and other necessary business documents, access to public utilities, notary and other services.

 

In addition, "Baku SMB House" provides over 100 business-to-business (B2B) services to entrepreneurs, including banking, leasing, insurance, transportation and other services, by a total of 14 private institutions.

 

Primarily, these services are provided on the first floor of "Baku SMB House". On the second floor, there are training, start-up, mediation spaces and the International Trade, Development and Logistics Zone. Zaur Gasimbeyov pointed out that Baku SMB Development Center is also operating in "Baku SMB House". Here, entrepreneurs can attend free trainings on various topics and benefit from consulting services. The Startup Development Center, a shared workspace equipped with a variety of equipment, was established particularly for idea-stage startups. Here, startups' needs for expert, design, engineering and mentor support are met. Meetings of start-ups and investors, trainings, mentor support and consulting services are regularly held at the center. Furthermore, entrepreneurs are encouraged to benefit from meeting rooms and conference hall here, which are designed for business meetings and various events.

Solely in 2023, the SMB Development Center operating in "Baku SMB House" offered more than 200 trainings for about 3,000 entrepreneurs, startups and those interested in starting a new business, up to 700 consulting services and support for the development of business plans.

The Mediation Council provides services to businesspersons in "Baku SMB House" to resolve business-related disputes without applying to court.

 

We also had a conversation with business owners at "Baku SMB House". According to Namig Mammadov, who applied for a permit form at the service window of the Azerbaijan Land Transport Agency (ALTA) for international cargo transportation activities, the SMB greatly facilitated their work: "I have been working in the cargo transportation industry for 6 years now. Previously, we had to wait a long time to get the permit form. Alternatively, we had to visit many places, which usually took very much of our time. Now we only apply to one address - "Baku SMB House" and we get to formalize all our permits without wasting any further time. All services are provided to businesspersons here. The entrepreneurs I know come here and obtain the required documents. I am truly appreciative of the exquisite conditions our state has established for us."

 

Ziya Gurbanli, whom we talked to, was a representative of "Atilla Transport" LLC, which is operating in the cargo transportation industry. Noting that they have just started working in this industry, Ziya Gurbanli also said that provision of state services in a single location saves the business owners` time and minimizes operational costs: "Entrepreneurs are more satisfied since these services are available in a transparent and timely manner. We obtain all the documents and permits at Baku SMB House without wasting any time," he added.

Alim Aliyev, who started a new business, applied to the window of the State Tax Service at the "Baku SMB House" on the registration of a business entity. According to Alim Aliyev, who expressed his satisfaction with the services provided to him, he was also aware of the existence of such place, but he never had the chance to visit the SMB house. "Because of the business I am running, I had to apply to the State Tax Service on registration issues, and that was the reason why I came to "Baku SMB House". I was ushered to the window of the tax office by pleasant personnel as soon as I arrived. I was elated to receive such treatment as a citizen. The use of the highest standards in serving the people of our nation makes us very delighted. This place offers services of such high quality that it is hard to be dissatisfied. Our endeavours will yield effective results if we are always greeted with such smiles, satisfaction, and comfort."

 

Contribution to the volunteer movement

 

KOBİA is one of the institutions that contribute to the volunteer movement in our country. Since its inception, the Agency has been closely working with volunteers, and the institution has adopted the "SMB Volunteers" program. Visitors to "Baku SMB House" are first greeted by volunteers. In response, Zaur Gasimbeyov stated that the "SMB Volunteers" program supports young, particularly those pursuing degrees in economics and administration, to broaden their knowledge and skills in the relevant field, their outlook, and acquire basic work habits. Volunteers are closely involved in the daily work process at "Baku SMB House". Certificates are given to young people who have successfully completed 3-6 months of volunteering program, which opens up opportunities for them to successfully transition to working life.

 

Fuad Miriyev, a junior year student at the Baku Business University, who is a volunteer at "Baku SMB House", says that volunteering is a crucial platform developed for the prosperous future of young people: "I have been working here as a volunteer for 3 months now. The experience I acquired here is the first significant experience I will have in my future career path. Here, we broaden our perspectives on entrepreneurship, business environment, and pick up important skills in the relevant field. This will help us learn more about administration, business and management. I am very much thankful to our state for giving us this opportunity."

Our second volunteer, Elnara Ganiyeva, has only been here for a week. According to her, volunteering is the first step towards social life: "We greet entrepreneurs, inform them, assist them in using the electronic queue system and accompany them to the appropriate service desks. We also conduct surveys to find out the level of satisfaction of applicants. We take part in a variety of events and trainings concurrently. I am glad that I signed up to be a volunteer, I believe this is a valuable experience for my future."

 

It is noteworthy that in 2023, about 150 young people have participated in voluntary activities in KOBİA surpassing the total of over 650 young people. 16 volunteers who were chosen with their initiatives and superb level of performance during the volunteering period were offered to be work for KOBİA.

 

SMB houses will also be established in the liberated territories

 

SMB Houses are attracting more and more attention from entrepreneurs. As a result, business owners are contacting SMB Houses with an increasing number of requests. Only in 2023, more than 371 thousand services were provided to entrepreneurs in SMB houses. 288,255 of the rendered services provided by "Baku SMB House", 61,326 by "Yevlakh SMB House", and 21,723 by "Khachmaz SMB House". About 350,000 of the services were provided by state institutions, while more than 21,000 were provided by business institutions.

 

Currently, the necessary works are being performed to establish an SMB house in the city of Ganja. It is planned to establish SMB houses in other cities and areas across the country, as well as in the liberated territories.

 

We had positive impressions when we left "Baku SMB House". We may conclude from our observations that the establishment of SMB houses is one of the most successful examples of reforms implemented regarding citizen services in our country. What we observed at “Baku SMB House" further implies that these places are the best places to foster entrepreneurship.


https://www.azerbaijan-news.az/az/posts/detail/sahibkarliga-desteyin-semereli-unvani-1708552047

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