No 753, 17 августа 2002 - Законодательство Азербайджанской Республики

Об утверждении государственной программы развития малого и среднего предпринимательства в Азербайджанской Республике (2002—2005 годы)

Дата релиза: 17.08.2002

On approval of the State Program on Small and Medium Entrepreneurship Development in the Azerbaijan Republic (2002—2005 years)

The Decree of the President of Azerbaijan Republic

On approval of the State Program on Small and Medium Entrepreneurship Development in the Azerbaijan Republic (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 Azerbaijan Republic (2002—2005)» (enclosed).

2. To define the Ministry for Economical Development of Azerbaijan Republic as a principal performer.

3. The Ministry of Finance of Azerbaijan Republic 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 Azerbaijan Republic should approve respective resolutions, ensuring fulfillment of the State Program.

5. This Decree comes into force from the date of publication.

President of Azerbaijan Republic

Heydar ALIYEV

Baku, 17 August, 2002

№ 753

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 Azerbaijan Republic (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 Azerbaijan Republic. 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 Azerbaijan Republic 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 Azerbaijan Republic, the Civil Code of the Azerbaijan Republic, the laws of the Azerbaijan Republic 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

the extension of the limits of the attraction of population to the entrepreneur activities;

the improvement of the entrepreneur activities from structural, regional and technological points of view;

strengthening of the SME role in the reconstruction of state economy structure, in the increase of its competitive potential and its bringing into line with the conditions of economic globalization;

the increase of the SME activities in resolving the social problems of Azerbaijan society;

providing new workplaces in production sector, the improvement of employment structure;

the increase of the SME share in state export;

the improvement of the regional structure of economic activities.

Primary measures to be implemented by the State Program on Small and Medium Entrepreneurship Development in the Azerbaijan Republic 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 Azerbaijan Republic 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 Azerbaijan Republic 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 Azerbaijan Republic 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		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.	Azerbaijan Republic 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, 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 Azerbaijan Republic	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 Azerbaijan Republic 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