Gubad Ibadoghlu, Senior Analyst, Economic Research Center
On 17 and 18 October, EU4Business Initiative annual report was presented at the Eastern Partnership (EaP) Business Forum hosted by the Czech Government. The EU4business initiative provides support in three priority areas: Access to Finance (A2F), access to Business Development Services (BDS) and Business Enabling Environment (BEE), with a total budget of nearly €900 million. The 2022 report shows a 9% increase in the number of SMEs supported by the EU compared to the previous year, with over 78,000 companies receiving assistance. SMEs receiving support have generated an estimated extra income of €2 billion in total and created an estimated 66,000 new jobs. Among them, a third were women-owned companies.
We have interviewed key experts from the EaP countries to find out the latest updates on their business environment and the EU’s assistance in speeding up the economic boost in their countries. Here are the answers from Azerbaijan.
What progress do you observe in your country’s business environment compared to the previous year? What areas of business support from the EU demonstrated most tangible results? What other joint projects with the EU could be most useful for your country’s economic boost?
My observation and research show that progress could have been more meaningful in the business environment than last year. SMEs’ full potential still needs to be untapped. Extended monopolization and the court system’s dependency on the executive branch are deteriorating for enabling environment for SMEs year by year. Institutional and regulatory frameworks for them should develop, and access to finance should simplify. Public procurement should be open and competitive.
Business services have one of the most tangible results in business support from the EU.
For economic boost, entrepreneurial learning/SME skills and women entrepreneurship can be joint projects with the EU. Besides enhancing the rule of law, increasing transparency and access to information on tenders and combating corruption in public procurement can be potential areas of cooperation between the EU and Azerbaijan.
