SMB

We believe Azerbaijan’s socio-economic development is closely linked with entrepreneurship and its future development!

Reception of entrepreneurs to be held in Imishli Meeting Held with Entrepreneurs in Yardimli region Meetings with entrepreneurs were held in the regions Which Services Did Entrepreneurs Use Most in 2025 Entrepreneurs’ Appeals Were Heard Azerbaijani Products Attracted Great Interest at the International Halal Exhibition Held in Mecca Seminar Held for Entrepreneurs on Amendments to the Tax Code Roundtable Organized with the Participation of Azerbaijani and Ukrainian Business Circles “Startup” Certificates Issued to 8 More SMB Entities Dialogue with Entrepreneurs: Nearly 140 Meetings and Public Discussions, More Than 30 Enterprise Visits

Today is International Micro, Small and Medium-sized Enterprises Day 27.06.25

Small and medium-sized business entities (SMEs) account for 99.7% of all active entrepreneurs in Azerbaijan.

Across the globe, micro, small, and medium-sized enterprises (SMEs) are regarded as engines of economic growth and social development. Their contribution to sustainable and inclusive development, employment generation, poverty reduction, innovation, and the achievement of the Sustainable Development Goals is substantial. Globally, approximately 90% of companies are classified as SMEs. These businesses provide 60–70% of global employment and contribute 50–60% of gross domestic product.

Recognizing this contribution, the United Nations General Assembly designated June 27 as the International Day for Micro, Small and Medium-sized Enterprises, beginning in 2017.

In Azerbaijan as well, SMEs are considered a driving force of the economy and a key to sustainable development. As of today, 99.7% of all entrepreneurs operating in the country are SMEs. These businesses are predominantly engaged in sectors such as trade, transportation and warehousing, tourism, food services, industry, real estate, education, and others.

Entrepreneurs in the country, including SMEs, benefit from extensive state support measures. Targeted support instruments aimed at SME development stimulate the emergence of new businesses in various sectors of the economy and promote the growth of existing ones—facilitating the transition of micro-enterprises into small businesses, and small businesses into medium and large-scale enterprises.

To enhance state policy in this sector, improve the effectiveness of support measures, and ensure institutional support, the Small and Medium Business Development Agency (KOBİA) was established in 2018. Since its inception, KOBIA has supported the establishment of new SMEs and the development of existing ones through a variety of mechanisms and tools.

The needs and challenges of SMEs are continuously monitored. Sectoral meetings, events, and surveys conducted within the framework of public–private dialogue platforms provide regular feedback. Based on the insights gained, legislative amendments are made, and new support mechanisms and incentives are introduced.

Taking national priorities into account, Azerbaijan is focused on increasing the share of SMEs in the economy and employment, supporting the creation of technology-oriented, digitalized, and competitive SMEs, promoting women’s entrepreneurship and clustering, and encouraging a transition toward a “green economy” in response to modern challenges such as environmental protection and energy efficiency. It is worth noting that within the framework of COP29, KOBIA initiated its first global proposal—the Joint Declaration on the Baku Climate Coalition for the Green Transition of SMEs—which calls for the unification of global efforts toward SME green transformation. To date, 20 local and international organizations have joined the initiative. The expansion and establishment of SME activity in the liberated territories of Azerbaijan is also actively supported by the state. The launch of SME operations in Karabakh, aided by various incentives and support mechanisms, is contributing to the formation of a new business environment in the region.

It should be noted that the “Criteria for the New Classification of Micro, Small, Medium and Large Enterprises” were approved by the Resolution of the Cabinet of Ministers dated December 21, 2018. According to these criteria, micro-entrepreneurs in our country are business entities with up to 10 employees and an annual income of up to 200 thousand manats. An entrepreneur with 11-50 employees and an annual income of 200 thousand to 3 million manats is considered a small entrepreneur. A medium-sized entrepreneur is an entrepreneur with 51-250 employees and an annual income of 3-30 million manats.