Azerbaijan Ranks Last on Important Parameters of SME Policy Index

The Organization for Economic Co-operation and Development (OECD) released a report and a special index (SME Policy Index) of the state policy in the sphere of small and medium-sized enterprises in the countries of the Eastern Partnership.

This year, Azerbaijan took the last place on two basic parameters of SME Policy Index (http://goo.gl/z8Zr6w).

OECD experts believe that governments should prefer open tender rather than closed and non-competitive practices in public procurement. These purchases have to create conditions for equal participation of small and medium-sized enterprises (SMEs). On this parameter Georgia with a score of 4.06 takes the 1^st place and Azerbaijan (2.42 points) takes the 6^th place.

According to the availability of financial resources of SMEs, Georgia once again is ahead of the remaining countries of the Eastern Partnership with 3.76 points. Azerbaijan also took the last place (2.70 points).

According to the economist Rovshan Agayev, sustainable economic development and resistance to crises depends on the level of development of SMEs. In those countries, where SMEs are underdeveloped, "immunity" to the crisis is low. In developed countries, the share of SMEs in GDP is estimated at least 50%, and in some countries this figure reaches 70-80%.

According to the expert Agayev, in Azerbaijan the share of small business in GDP is 3% and the statistics of medium-sized business is not conducted. Perhaps it is due to the fact that this kind of business does not exist at all, said Agayev. ----08D