The preferential financing mechanism of entrepreneurship
One of the main directions of the successfully implemented economic development policy by the President of the Republic of Azerbaijan Ilham Aliyev is comprehensively supporting of private sector, to create enabling environment for its further expansion, to apply support and promote mechanism in this field..
In order to provide financial aid to the development of entrepreneurship, especially small businessmen and improvement of employment status of population National Fund for Entrepreneurship support was created under the Ministry of Economic Development. The "Procedures on the use of the funds of Azerbaijan Republic National Fund for Entrepreneurship Support" was further improved with the Decree of the President of Azerbaijan Republic dated October 13, 2011. According to the Decree on "Improvement of mechanisms of the use of the funds of Azerbaijan Republic National Fund for Entrepreneurship Support" approved by the President of Azerbaijan Republic dated October 13, 2011, limit of small loans increased up to 50 thousand manat (its period-3 years), medium-sized credit limit up to 500 thousand manat (5 years), a large amount of credit limit up to 10 million manat (10 years). Grace period for loans will cover the first ½ cycle of the validity period of the loan.
By guiding strengthening of state support to entrepreneurship and duties required the solution on development priorities and phases of Azerbaijani economy for the purpose of guarantying the expansion of the activity of National Fund for Entrepreneurship Support was created suitable condition for directing of preferential credits on more purposed projects at the result of improving of utilization rules of status and assets of Fund on the basis of appropriate decrees of President of Azerbaijan Republic in 2002, 2004, 2005, 2006, 2009 years.
As a real source of meeting financial needs of small and medium enterprises was formatted state finance support mechanism to entrepreneurship that characterized with the application of preferential financed mechanism by the account of National Fund for Entrepreneurship Support. By the account of Fund's assets is observed relative increase in the direction for increasing of production and processing areas in regions, including in the amount of credits directed to development of tourism. Due to realize the noted factors the main duties of the National Fund for Entrepreneurship Support are following
• To finance the investment projects of entrepreneurship subjects on priority directions of social- economic development of Azerbaijan Republic related to legislation;
• To take measures to attract resources from finance markets and formulate appropriate credit sources:
• To control the effective and purposed using of assets given to finance the entrepreneurship subjects and to determine the rules of implementing monitoring for this purpose
• To implement the expertise financed investment projects, to give preference financing of investment projects arising from the state programs directed to development of entrepreneurship.
• to determine the evaluation of investment projects and minimum requirements on compiling of investment projects for getting preferential credits;
• to help the collection and dissemination of legal, economic and other data that necessary for the entrepreneurship subjects, learning of market conjuncture, preparation of programs and investment projects regarding to entrepreneurship activities;
• to support the preparing of cadres for entrepreneurship subjects and improving of their profession;
• To assist the entrepreneurship subject to expand their foreign economic activity;
• To help the formulating and developing of market infrastructures of entrepreneurship in our country;
• To help the propagation of important scientific- technical knowledge and innovation for entrepreneurship subjects.
For more information about the activity of National Fund for Entrepreneurship Support can be found from the www.anfes.gov.az web page.