The engine of the private sector in Azerbaijan - small businesses

As of October 1, 2014 the share of small enterprises in the structure of economic entities amounted to 80.5%, according to the State Statistics Committee. Excluding state-owned enterprises of social and administrative spheres, as well as more than 1,600 municipalities, this figure would be much higher.

According to the State Statistics Committee, in the first nine months of this year were registered 6700 new businesses and organizations, 1,219 of which are in the public sector. Thus, the total number of businesses in Azerbaijan reached 92,226 units. During this period, there were abolished 410 companies and organizations, 10% of which were in the public submission.

Note that the analysis of data on state registration of commercial entities showed that many established companies in the future become participants in corruption schemes on money from the state budget. Turan news agency’s investigation revealed that the same persons are created in different parts of the country, hundreds of companies. These companies are involved in the next phase with the "development" budget "pie" through formal tendering procedures.

Returning to the official statistics, it should be noted that in the private sector there are 80.4 thousand companies, as well as non-governmental and non-profit organizations. From the beginning of the year, there have been established 388 companies with 100% foreign capital and 101 joint ventures and liquidated 36 companies and 6 JVs, respectively. Of 6,997 companies with capital involving citizens of foreign countries, 31.2% have been created with the participation of Turkish capital, 8.6% - with British capital, 6.5% - Russian, 5.3% - Iranian, 3.7% - USA, etc.

According to the criteria of the government, small enterprises are entities that have 10 to 50 employees, depending on the scope of work and an annual turnover of 250 000 to 1 million manat. --08B--

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