Entrepreneurship support

  • Updated 06.05.2019 15:58
  • Created 25.09.2012 08:00

Criteria for classification of small entrepreneurship subjects

 

New edition of the criteria for classification of small entrepreneurship subjects has been approved by decision of the Cabinet of Ministers of the Republic of Azerbaijan dated 18 December, 2009.

The creation of methods for determination of small entrepreneurship subjects are based on experiences of developed countries and recommendations of the international institutions.

According to this decision, small entrepreneurship subjects shall have less than 50 employees and annual turnover of 500,000 AZN in industry and construction; less than 25 employees and annual turnover of 250,000 AZN in agriculture; less than 15 employees and annual turnover of 1 million AZN in wholesale trade; and less than 10 employees and annual turnover of 250,000 AZN in retail trade, transportation, services and other forms of economic activities.

 

Limits of criteria for classification of small entrepreneurship subjects

on types of economic activity

Entrepreneurship category

Average number of employers (person)

Annual turnover
(without VAT, excise)

Industry and construction

< 50

> 500 thousand AZN

Agriculture

< 25

> 250 thousand AZN

Wholesale trade

< 15

> 1 mln. AZN

Retail-store trade, transport, service and other types of economic activities

< 10

> 250 mln. AZN

 

To classify entrepreneurship subjects in the small entrepreneurship sector, both indicators for this sector should be within the defined limits

For new start-ups, the criteria during the first year of operation shall be based on the number of employees for and on the annual turnover for individuals involved in business operations without establishment of a legal entity.

The new criteria will play a significant role in provision of target state assistance to entrepreneurs and conduction of detailed statistical and economic analyzes in Azerbaijan.

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