Об утверждении государственной программы развития малого и среднего предпринимательства в Азербайджанской Республике (2002—2005 годы)
Дата релиза: 07.02.2005
The Decree of the President of the Republic of Azerbaijan
On approval of the State Program on Small and Medium Entrepreneurship Development in the Republic of Azerbaijan (2002—2005)
In order to intensify the development of private sector in economy of the country, encourage investments attraction to this sphere, increase the effectiveness of the state assistance to small and medium entrepreneurship I decree:
1. To approve «State Program on Small and Medium Entrepreneurship Development in the Republic of Azerbaijan (2002—2005)» (enclosed).
2. To define the Ministry for Economical Development of the Republic of Azerbaijan as a principal performer.
3. The Ministry of Finance of the Republic of Azerbaijan should ensure an annual allotment of respective funds in the project of state budget for the purpose of fulfillment of measures stipulated by the State Program.
4. The Cabinet of Ministers of the Republic of Azerbaijan should approve respective resolutions, ensuring fulfillment of the State Program.
5. This Decree comes into force from the date of publication.
President of the Republic of Azerbaijan
Heydar ALIYEV
Baku, 17 August, 2002
No. 753
Published in "Azerbaijan" newspaper (18 August, 2002, No. 188) ("LegalActs").
As amended by Decree of 7 February, 2005, No. 193 ("LegalActs").
Approved by the Decree
No. 753 dated August 17, 2002 of the
President of the Republic of Azerbaijan
State Program on small and medium entrepreneurship development in the Republic of Azerbaijan (2002-2005)
The objectives defined in the «State Program of the assistance to small and medium entrepreneurship» (1997-2000) have been mainly achieved. Legal basis of the development of small and medium entrepreneurship (hereinafter SME) in our country has been developed; there is significant progress in the entrepreneurship adjustment. The structures rendering education, information and consulting services to the SME have extended and their activities have intensified. Necessary measures were taken to form the mechanisms of financial assistance to the SME, to reduce taxes for entrepreneurs, to strengthen the promotional role of the tax structure. Special measures were taken in the sphere of forming the mechanisms of protection of the entrepreneurs’ rights and interests. With the purpose of prevention the unlawful interferences into entrepreneurs’ activities and liquidation of baseless examinations the application of «Control book» was started. The activities of the SME regional infrastructures have extended. Significant results were achieved in the establishment of public and trade unions of entrepreneurs. Cooperation relations with international, regional and national organizations of foreign states in the sphere of the SME development have been strengthened.
As a result of the state assistance measures implemented in the spheres of state property privatization and the SME development the private sector has gained supreme role in the state economy. According to the results of 2001 the share of the private sector in the Gross Domestic Product was 71.0%. 48.3% of industrial production, 99.0% of farm production, 76.1% of construction, 98.4% of domestic commodity turnover, 62.5% of paid services to people, 83.9% of transport, 59.0% of foreign commodity turnover, 52.6% of export, 69.0% of import fell to the share of the private sector. 39.6% of state budget receipts were formed by private sector earnings. The share of the private sector in the employment over the country is 70.0%. According to the results of 2001 the number of officially registered juridical person statused economy-financial structures of the private sector exceeded 58.6 thousand. 80.1% of them are small and medium enterprises. In average 58 officially registered small enterprises fall at 10 thousand people over the country. During the last 5 years the share of the SME in Gross Domestic Product has increased from 24.7% to 42.7%.
Along with it, the possibilities provided by the social and macroeconomic stability formed in our country were not fully used for the purpose of the SME development acceleration. The number of people engaged in entrepreneur activities is less than existent possibilities. Though the weight of the private sector in state economy has grown, the enterprises of strategic significance, possessing the structure forming potential are still poor developed. The influence of the SME sector to the strengthening of the export potential of the country and improvement of its structure is limited. The present level of the regional development of entrepreneurship is not corresponding with the country existent potentials. Thus, at present 70% of the SME enterprises has gathered in Baku and its outskirts. The contacts between domestic producers develop poorly and the cooperation and integration of the SME and large enterprises is not at the necessary level.
The acceleration of the SME development, strengthening the role of this sector in the forming of effective system of market economy and its bringing to conformity with international economic circumstances, in the resolving of economic and social problems of the country are one of the primary courses of the economic policy of the Republic of Azerbaijan. With this purpose the limits of state assistance measures to the SME development are extended and their addressing is being strengthened.
The purpose of the Program
The purpose of the Program is to ensure the SME development in the Republic of Azerbaijan on the basis of the improvement of entrepreneur activities regulation system, the SME manpower development, intensification of the mechanisms of technical and financial assistance, strengthening of legal reasoning of entrepreneurship and creation of favorable conditions for the entrepreneurship development in the regions.
Legislative basis of the Program
The Program was prepared in accordance with the Constitution of the Republic of Azerbaijan, the Civil Code of the Republic of Azerbaijan, the laws of the Republic of Azerbaijan on «Entrepreneurship activities» and on «State assistance to small entrepreneurship» and other legislative acts.
The Program objectives
For the implementation of the purposes of the Program the following objectives are to be accomplished:
- the improvement of the state registration, licensing of entrepreneurship activities and certification regulations of the SME products;
- the improvement of the SME information supply on the basis of wide application of current information technologies;
- forming the system of the preparation of young people to entrepreneur activities;
- assistance to SME to establish and extend international business contacts;
- preparation of the mechanisms of technical and financial assistance to the SME on competitive export products production;
- expansion of the mechanisms of financial, loan and investment assistance to the SME production activities;
- ensuring of the regional development of entrepreneurship;
- promotion to the domestic producers’ cooperation relations;
- support of technological progress in the SME sector;
- the development of the system of entrepreneurs’ rights protection.
The Program financial provisions
The main sources of finance for the Program are the following:
- payments from the envisaged state budget grants;
- the means of the National Fund for Entrepreneurship Development;
- state funds for the population employment;
- the funds of municipal authorities;
- technical and financial assistance of international and foreign organizations;
- special projects;
- foreign investments;
- optional contributions of people.
The expected outputs
Primary measures to be implemented by the State Program on Small and Medium Entrepreneurship Development in the Republic of Azerbaijan for 2002-2005 the improvement of state regulation of entrepreneurship
|
No. |
Measures |
The purpose of the measure |
Executors |
Time line of implementation | |
|
1 |
2 |
3 |
4 |
5 | |
|
1.1. |
Periodical examination of the list of activities demanding special permits (license) and preparation of proposals on the improvement of licensing system |
The increase of the guiding role of licensing. Ensuring the effective organization of the control over licensed types of activities. Determination of the effective limits of circle of the entrepreneurship demanding special permits (license). |
Ministry of Economic Development, Ministry of Justice |
2002-2005 | |
|
1.2 |
Providing methodical and organizational assistance to the SME in the standardization and certification of their products |
Creation of conditions for the upgrade of products and services produced in the SME sector, and the increase of their competitiveness. |
Ministry of Economic Development, State Agency for Standardization, Metrology and Patent |
2002-2005 | |
|
1.3. |
Improvement of the certification regulations of products and services produced in the SME sector |
Forming the system of effective control over the quality of the SME products and services. |
Ministry of Economic Development, State Agency for Standardization, Metrology and Patent |
2003 | |
|
1.4. |
Preparation of proposals on the improvement of criteria of the SME subjects’ determination |
The application of the method of exact defining of the SME sphere limits. |
Ministry of Economic Development, State Statistics Committee |
2002 | |
|
1.5. |
Establishment of mechanisms of the SME subjects’ participation in the implementation of works on the production of products and providing services (works) for government needs |
Ensuring the participation of the SME subjects in the implementation of government works. |
Ministry of Economic Development, Ministry of Finance |
2002-2003 | |
| 2. Financial and investment backing of the SME development | |||||
|
2.1 |
Preparation of the draft of the Law of the Republic of Azerbaijan on «Mutual insurance societies» |
Creation of legal basis for the establishment and development of mutual insurance. Promotion of the system of entrepreneurship risks’ insurance. |
Ministry of Economic Development, Ministry of Finance |
2003 | |
|
2.2. |
Preparation of the new draft of the Law of the Republic of Azerbaijan on «Investment activity» |
Improvement of state guaranteeing of investments. Promotion of investments to key sectors in the regions. |
Ministry of Economic Development, Ministry of Finance, Ministry of Taxes |
2002-2003 | |
|
2.3. |
Analysis of the experience of application of the taxes for small entrepreneurship subjects by simplified system and preparation of the proposals on its improvement |
Forming effective tax structure for small entrepreneurship subjects. |
Ministry of Economic Development, Ministry of Finance, Ministry of Taxes |
2002 | |
|
2.4. |
Analysis of the application of dues and various non-tax payments in the SME sphere |
Preparation of the proposals on the determination of reasonable limits of dues and non-tax payments in the SME sphere. |
Ministry of Economic Development, Ministry of Finance |
2003-2005 | |
|
2.5. |
Preparation of the proposals on the coordination of fiscal policy with other directions of state support to the SME |
Rise of the effectiveness of the policy of state support of the SME. |
Ministry of Economic Development, Ministry of Finance, Ministry of Taxes |
2003 | |
|
2.6. |
Preparation of the proposals on the improvement of the system of credit supplying of small entrepreneurs |
Creation of the mechanisms of ensuring collective credits supplying of small entrepreneur subjects, increase of the level of credits supplying of small entrepreneur subjects. |
Ministry of Economic Development, Ministry of Finance, National Bank, National Fund for Entrepreneurship Development |
2002-2003 | |
|
2.7. |
Preparation of the proposals on the improvement of the mortgage and deposit mechanisms in the sphere of small entrepreneurship |
Establishment of effective regulations of making mortgaging contracts and fulfillment of the obligations under the contracts. |
National Bank, Ministry of Finance, Ministry of Economic Development, Ministry of Justice |
2002 | |
|
2.8. |
Forming microcredits schemes for different orders of people wishing to be engaged in entrepreneur activities. |
Creation of possibilities for people for receiving initial capital to start entrepreneur activities. |
National Bank, Ministry of Finance, Ministry of Economic Development |
2002-2003 | |
|
2.9. |
Assistance to the Credit Unions |
Extension of possibilities of independent satisfying of financial requirements of the members of Credit Unions. Extension of credit base of the SME. |
National Bank, Ministry of Finance, Ministry of Economic Development |
2002-2005 | |
|
2.10 |
Preparation of the mechanism of participation of the SME subjects in state investment programs |
Creation of conditions for the active participation of the SME in the application of state investment resources. |
Ministry of Economic Development, Ministry of Finance |
2003 | |
|
2.11 |
Preparation of the mechanism of investment support for the SME industrial enterprises’ modernization |
Acceleration of technical and technological renovation of industrial sector. |
Ministry of Economic Development, Ministry of Finance |
2002-2003 | |
|
2.12 |
Preparation of the proposals on the coordination of business banks with the SME investment needs |
Forming the mechanisms of obtaining bank credits by the SME |
National Bank, Ministry of Finance, Ministry of Economic Development, Ministry of Taxes |
2002 | |
|
2.13 |
Assistance to the preparation and implementation of the pilot investment projects on the application of mini-technologies in the sphere of agricultural products processing |
Aiming the SME at the promising scopes of activity in agro-industrial complexes. |
Ministry of Economic Development, Azerbaijan University of Technology, Ministry of Agriculture |
2002-2005 | |
|
2.14 |
Assistance to the preparation and implementation of the pilot investment projects on the application of technological innovations in the sphere of petrochemistry and chemical industry |
Aiming the SME at the promising scopes of activity in petrochemical complexes. |
Ministry of Economic Development, National Academy of Sciences, Azerbaijan State Oil Academy |
2002-2005 | |
|
2.15 |
Creation of data bank on the SME investment proposals |
Detection, selection and effective implementation of interesting projects and investment sources in the SME sphere. |
Ministry of Economic Development |
2002-2005 | |
|
2.16 |
Assistance to the financing of the SME subjects’ innovation projects, creation of the mechanisms of the Venture capital use |
Assistance to the financing of scientific and technological achievements, venture projects, and application of technological innovations in the SME sector. |
State Agency for Standardization, Metrology and Patent, National Bank, Ministry of Finance, Ministry of Economic Development, Ministry of Education, National Academy of Sciences |
2003-2005 | |
|
2.17 |
Extension of cooperation with foreign and international financial and credit structures in the sphere of small entrepreneurship financing |
Extension of possibilities for investments’ attraction to the SME sphere. |
National Bank, Ministry of Finance, Ministry of Economic Development |
2002-2005 | |
| 3. Assistance to structural changes and technological progress in the SME sector | |||||
|
3.1. |
Preparation of the draft of the decree of the Cabinet of Ministers of the Republic of Azerbaijan on «Promotion to cooperation relations among small, medium and large enterprises» |
Assistance to the extension of cooperation relations among small, medium and large enterprises. |
Ministry of Economic Development, Ministry of Justice, with the participation of Entrepreneurs’ public associations |
2003 | |
|
3.2. |
Creation of data bank on the cooperation potentialities of small, medium and large enterprises |
Forming the cooperation basis of small, medium and large enterprises. |
Ministry of Economic Development, State Oil Company |
2002-2005 | |
|
3.3. |
Preparation of methodical materials on the establishment of cooperation relations among small, medium and large enterprises |
Assistance to the establishment of effective cooperation relations among small, medium and large enterprises. |
Ministry of Economic Development, |
2002 | |
|
3.4. |
Establishment of the SME subjects’ production sale and show center, assistance to its work |
Promotion to the production of competitive export products by the SME. Attraction of investors to the SME sector. |
Ministry of Economic Development, Baku city executive authority, with the participation of Entrepreneurs’ public associations |
2002-2005 | |
|
3.5. |
Forming the mechanisms for the assistance to the SME subjects’ export activities |
Creation of conditions for the extension of small and medium enterprises’ export production. |
Ministry of Economic Development, with the participation of Entrepreneurs’ public associations |
2002-2003 | |
|
3.6. |
Assistance to the establishment of working associations of the SME with foreign technological structures |
Creation of conditions for wide application of technological innovations in the SME sector. |
Ministry of Foreign Affairs, Ministry of Economic Development, State Agency for Standardization, Metrology and Patent. |
2002-2005 | |
| 4. Technical assistance to the SME and human element development | |||||
|
4.1. |
Completion of the SME’s information supply system establishment |
Improvement of information supply of entrepreneurs on the basis of wide application of up-to-date information technologies. |
Ministry of Economic Development, with the participation of Entrepreneurs’ public associations |
2002-2005 | |
|
4.2. |
Assistance to the SME use of «Internet-business» services. Organization of the «SME-NET» services |
Extension of the possibilities of the SME use of Internet services. |
Ministry of Economic Development, State Statistics Committee, Ministry of Communications and Information Technologies |
2002-2005 | |
|
4.3. |
Publication of information periodicals for the SME |
Improvement of the SME information supply |
Ministry of Economic Development, with the participation of Entrepreneurs’ public associations |
2002-2005 | |
|
4.4. |
Creation of the SME training center |
Promotion of the SME training |
Ministry of Economic Development, Ministry of Education, Ministry of Finance |
2003 | |
|
4.5. |
Preparation of the basic guidance and training programs for the SME training |
Improvement of the education in the sphere of entrepreneurs’ training and retraining |
Ministry of Education, Ministry of Economic Development, with the participation of Entrepreneurs’ public associations |
2003 | |
|
4.6. |
Preparation and publication of the guidance and instructive school books for the SME training |
Assistance to the population in getting knowledge on entrepreneur activities |
Ministry of Economic Development, Ministry of Education |
2002-2005 | |
|
4.7. |
Preparation of proposals on the organization of the entrepreneurship basics’ teaching in the general, vocational and higher education schools |
Preparation of general and vocational schools’ graduates to entrepreneur activities |
Ministry of Economic Development, Ministry of Education |
2003 | |
|
4.8. |
Preparation of proposals on the improvement of educational system in accordance with the requirements of entrepreneurship development |
Improvement of manpower training on main specialties for small and medium business |
Ministry of Education, Ministry of Economic Development, Ministry of Labour and Social Protection of People |
2002-2003 | |
|
4.9. |
Organization of trainings, consulting and information services on entrepreneurship basics for army discharged young people |
Assistance to the attraction of young people to the entrepreneur activities |
Ministry of Youth, Sports and Tourism, Ministry of Economic Development, Ministry of Labour and Social Protection of People |
2002-2005 | |
|
4.10 |
Preparation of certification criteria and regulations for the SME educational centers |
Increase of the control of the SME trainings quality |
Ministry of Economic Development, Ministry of Education |
2003 | |
|
4.11 |
Conducting the «CIS partnership» business-like cooperation forum in Baku |
Assistance to the establishment and development of business relations of the SME with foreign partners |
Ministry of Economic Development, Ministry of Foreign Affairs, Ministry of Finance, Baku city executive authority, with the participation of Entrepreneurs’ public associations |
2002 | |
|
4.12 |
Implementation of the SME sector monitoring |
Control of the resolving of vital problems in entrepreneurship development. |
Ministry of Economic Development, State Statistics Committee, with the participation of Entrepreneurs’ public associations |
2002-2005 | |
|
4.13 |
Preparation of the annual analytic reports on the SME development |
Analysis of the achievements in the sphere of the SME development and preparation of the proposals on the implementation of state policy |
Ministry of Economic Development, State Statistics Committee |
2002-2005 | |
| 5. Acceleration of the entrepreneurship regional development | |||||
|
5.1. |
the Republic of Azerbaijan investment projects’ mapping |
Attraction of investments to regions |
Ministry of Economic Development |
2002 | |
|
5.2. |
Forming and implementation of the normative and legal basis of regional economic incentive mechanisms |
Acceleration of the attraction of investments to the development of economic regions and of the entrepreneurship development |
Ministry of Economic Development, Ministry of Finance, Ministry of Taxes, Ministry of Justice |
2002-2005 | |
|
5.3. |
Preparation and fulfillment of concrete proposals on the application of discounted factors in wages in mountainous and border regions, including Nakhchivan Autonomous Republic, long-term abatements to tax-payers and discounted credits to the development of local production |
Ensuring the further raise of employment level |
Ministry of Economic Development, Ministry of Finance, Ministry of Taxes, Ministry of Fuel and Energy, Ministry of Labour and Social Protection of People, National Bank |
2002-2003 | |
|
5.4. |
Preparation of proposals on the creation of the system of technical and organizational assistance to the persons working at home in the regions |
Provide conditions for the extension of employment level and sources of earnings in the regions |
Ministry of Economic Development, Ministry of Labour and Social Protection of People, municipal authorities |
2002-2003 | |
|
5.5. |
Preparation of proposals on the appropriate changes in present normative and legal documents with the purpose of forming the mechanisms of assistance of local executive bodies to economic development, especially to local entrepreneurship |
Strengthening the mechanisms of the local executive bodies’ influence upon the social and economic development of the regions |
Ministry of Economic Development, Ministry of Finance, Ministry of Taxes, Ministry of Justice, local executive bodies |
2002-2003 | |
|
5.6. |
Preparation of proposals on the improvement of the present normative and legal basis with the purpose of intensification the activities of institutions of local governing in the sphere of economic development |
Acceleration of the economic development of the regions |
Ministry of Economic Development, Ministry of Justice, local executive bodies, municipal authorities |
2003 | |
|
5.7. |
Preparation of the drafts of standard and legal documents on the establishment of entrepreneurs’ and artisans’ trade unions in the regions |
Acceleration of the establishment of entrepreneurs’ and artisans’ trade unions in the regions |
Ministry of Economic Development, Ministry of Justice, local executive bodies, Entrepreneurs’ public structures |
2003 | |
|
5.8. |
Preparation and implementation of the projects on the restoration and promotion of the craftsmanship in the regions |
Ensuring rapid development of the craftsmanship in the regions |
Ministry of Economic Development, regional Entrepreneurs’ public associations |
2002-2005 | |
|
5.9. |
Rehabilitation, development and extension of activities of the subjects of social and economic infrastructure services in accordance with the requirements of market economy |
Acceleration of the development of the subjects of social and economic infrastructure in the regions |
Ministry of Economic Development, Ministry of Health, Ministry of Education, Ministry of Fuel and Energy, Ministry of Communications and Information Technologies, Ministry of Culture, Ministry of Youth, Sports and Tourism, Committee of Melioration and Water Industry, «Azerenergy» JSC, «Azerigas» JSC, «Azeravtoyol» SC |
2002-2005 | |
|
5.10 |
Assistance to the preparation and fulfillment of regional branch programs on small entrepreneurship |
Acceleration of the development of entrepreneurship in the regions on the basis of local resources conservation |
Ministry of Economic Development, Ministry of Finance, Ministry of Labour and Social Protection of People, local executive bodies, municipal authorities |
2002-2005 | |
|
5.11 |
Creation of technological business incubator in Baku city |
Creation of favourable conditions for the innovative entrepreneurship development |
Ministry of Economic Development, Ministry of Education, State Agency for Standardization, Metrology and Patent, National Academy of Sciences |
2003-2005 | |
|
5.12 |
Forming the local market infrastructures of entrepreneurship (consulting, training, information, advertising, etc.) |
Completion of the establishment of the local entrepreneurship market infrastructure |
Ministry of Finance, Ministry of Economic Development, with the participation of Entrepreneurs’ public associations |
2002-2005 | |
|
5.13 |
Assistance to the establishment of branches of financial and credit structures in the regions |
Ensuring of the use of investment sources by small entrepreneurs in the regions |
National Bank, International Bank, United Universal Joint-Stock Bank |
2002-2005 | |
|
5.14 |
Widening of the system of agro- service enterprises in the regions (machinery repair, chemicals, veterinary and agricultural services) |
Promotion of farms |
Ministry of Agriculture, Ministry of Finance, Ministry of Economic Development |
2002-2004 | |
|
5.15 |
Extension of the establishment of scopes of entrepreneur activities in areas populated by refugees and displaced persons according to local conditions |
The raise of employment level of refugees and displaced persons |
Ministry of Finance, Ministry of Economic Development, Ministry of Labour and Social Protection of People, State Committee on Refugees and Displaced persons |
2002-2004 | |
| 6. Strengthening of the entrepreneurs’ rights protection | |||||
|
6.1. |
Preparation of the proposals on the amendments and additions to the Civil Code of the Republic of Azerbaijan |
Increase of the responsibility of registration bodies for the implementation of the state registration of economy subjects during the time determined in the legislation |
Ministry of Economic Development, Ministry of Justice |
2002 | |
|
6.2. |
Preparation of the proposals on the strengthening of the contract legal norms, improvement of the regulations of the resolution of contract cases |
Increase of the role of the contracts in the raise of good organization of the entrepreneurs’ commercial relations |
Ministry of Economic Development, Ministry of Justice, Ministry of Finance, National Bank, Economical Court |
2003 | |
|
6.3. |
Preparation of the draft of the decree of the Cabinet of Ministers of the Republic of Azerbaijan on the «Control and examinations in the sphere of entrepreneurship» |
Approval by the legislation of the list of the bodies fulfilling examinations, the titles of issues to be examined by each body, the limits of examinations, periodicity and the cases to be the ground for examination |
Ministry of Agriculture, Ministry of Finance, Ministry of Economic Development, Republican Office of Public Prosecutor, Ministry of Justice, Ministry of Taxes, Ministry of Internal Affairs, Ministry of Health |
2002 | |
|
6.4. |
Improvement of the mechanisms of «Control book» application |
Liquidation of unlawful interferences into entrepreneur activities |
Ministry of Economic Development |
2002-2003 | |
|
6.5. |
Preparation and publication of books from «Foundations of entrepreneur right» series |
Extension of the SME supply with legal literature |
Ministry of Economic Development, Ministry of Justice |
2002-2005 | |
|
6.6. |
Extension of legal services to entrepreneurs in the SME system |
Enlargement of the scope of discounted legal advice to the SME |
Ministry of Economic Development, Ministry of Justice |
2002-2005 | |
|
6.7. |
Technical and organizational assistance to the protection of rights and interests of the Entrepreneurs’ public associations’ members |
Increase of the role of the SME public structures in the protection of rights and interests of entrepreneurs |
Ministry of Economic Development, Ministry of Justice, Entrepreneurs’ public associations |
2002-2005 | |
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