KOBIA has announced the amount of funding allocated to SME financing over the past 8 years
Over the past 8 years, AZN 2.2 million in grants has been allocated to 129 projects of small and medium-sized enterprises (SMEs) in Azerbaijan in the fields of education, science, research, and support.
Startup.az reports that this is stated in a report released on the occasion of the 8th anniversary of the Small and Medium Business Development Agency (KOBIA), operating under the Ministry of Economy and specializing in providing support and services to SMEs.
According to the report, taking into account the need to enhance entrepreneurs’ knowledge and skills in business, this area has been a priority in KOBIA’s activities over the past years. To date, nearly 10,000 free consultancy services have been provided to entrepreneurs through KOB Development Centers, and 5,200 training sessions have been delivered to 64,800 entrepreneurs. Traditional training mechanisms have been complemented with innovative and digital solutions, creating more flexible and convenient opportunities for entrepreneurs. Practical training provided through the SME Model Enterprise established at Azerbaijan Technical University has helped entrepreneurs improve their business knowledge and skills by teaching efficient and cost-effective management methods. More than 2,200 entrepreneurs have benefited from a video training platform featuring 180 training videos, training materials, and self-assessment tests.
A total of 48 “SME Friends” are currently operating in 47 cities and regions of the country, including the liberated territories of Lachin, Zangilan, Kalbajar, and Fuzuli, providing on-site services to entrepreneurs. Over time, the SME Friend network has become a reliable partner for entrepreneurs by contributing to effective coordination with public and private institutions and the prompt resolution of challenges they face.
To identify SMEs’ needs and challenges and communicate them to relevant authorities, KOBIA has established a number of effective communication channels. Nearly 700 sectoral meetings have been held in Baku and the regions with the participation of more than 22,500 entrepreneurs. Within the framework of the Public Council under KOBIA, around 50 public discussions have been organized. These meetings have helped identify entrepreneurs’ challenges, discuss them jointly with government bodies, support their resolution, and raise awareness. Surveys involving nearly 20,000 entrepreneurs have also been conducted.
Protecting the interests of SMEs is a key area of KOBIA’s activities, and over the past 8 years, the rights of many entrepreneurs have been restored in this regard. KOBIA has obtained an international ISO certificate for “Quality Management, Customer Satisfaction, and Guidelines for Handling Complaints in Organizations.”
Significant steps have also been taken toward the digitalization of the SME sector. The e-SME House portal, which provides entrepreneurs with a wide range of electronic services at all stages of business development, has been launched in beta version and will become fully operational in the new year.
Over the past 8 years, KOBIA, together with partner institutions and the private sector, has implemented a number of social projects and programs for SMEs. Under the “Karabakh SMEs” project, support has been provided to 220 veterans and family members of martyrs to start businesses. Within the “Youth Business Workshop” project, 65 young people have been supported in launching their businesses. The “Women Entrepreneurs in Successful Partnership” project has supported 70 women entrepreneurs. Under the “From Us to Business” startup project, mentoring and financial support have been provided for the implementation of startup ideas. The “Investment Journey” project has informed hundreds of regional businesses about the securities market. Social Entrepreneurship and Employment Centers established in Masalli and Sumgayit have provided vocational training to 250 socially vulnerable individuals and supported their employment. A total of 850 young people have participated in the “SME Volunteers Program.”
Since 2022, KOBIA has been awarding the “Dayaq” Prize to business entities to promote entrepreneurial success, foster business thinking, and further strengthen cooperation between the public and private sectors.
To support SMEs, expand links between local and foreign entrepreneurs, implement joint projects, and promote experience exchange, KOBIA has signed 122 memorandums of understanding and documents with relevant institutions from 34 countries and with 27 local and international organizations. Six joint business councils have been established with Qatar, Saudi Arabia, Ukraine, Iraq, Vietnam, and the United Arab Emirates. More than 15 international events have been organized and attended by KOBIA to date. Within the framework of COP29, nearly 30 local and international partners have already joined the “Baku Climate Declaration for the Green Transition of SMEs” proposed by KOBIA.
As a result of these consistent and systematic activities, the number of SMEs increased by nearly 74% in 2018–2024, exceeding 424,000. Currently, SMEs account for 99.7% of all registered business entities in the country. During 2018–2024, the value added generated by SMEs more than doubled, rising from AZN 9.8 billion to AZN 21.1 billion, while their share in total value added increased from 13.4% to 18.5%. Employment in the SME sector grew by 47.6% to exceed 417,800 people. SME turnover increased by 54.5% in 2019–2024, reaching AZN 48 billion, which accounts for 37.4% of the country’s non-oil turnover.
It should be noted that 8 years have passed since the establishment of the Small and Medium Business Development Agency (KOBIA), the specialized institution for providing targeted support and services to micro, small, and medium-sized enterprises. Established by a decree of the President of Azerbaijan dated December 28, 2017, the Agency has become an institutional pillar of SME sector development over the past 8 years, reflecting the consistent and systematic state support provided under the leadership of the President for entrepreneurship, particularly the SME sector.