Entrepreneurship
The market-oriented development of the economy of Nakhchivan Autonomous Republic shifted the people's attitude towards the work, and made them more interested with entrepreneurship. The private sector, small and middle-range entrepreneurship in particular, play significant role in formation of the economy in the autonomous republic.
The economic reforms lead the way for the establishment of market economy mechanisms and are aimed at the foundation of enterprises producing high-quality goods through attracting investments, modern technology and management experience, the opening of new work places and consequently the improvement of people's well-being.
The legal basis for the entrepreneurship has been reformed in line with world experience in order to provide auspicious conditions for development of entrepreneurship. Relevant laws, programs and decrees of vital importance in all fields of management and economy have been adopted. Necessary mechanisms of entrepreneurship infrastructure have been established. Structures rendering financial, information and consultation services to entrepreneurs have been formed. The first stage of privatization process forming inevitable basis for development of entrepreneurship was completed, and the Second State Program regarding privatization was adopted. Consequently, overturn of big and small enterprises into stockholder societies and their privatization entered into next crucial stage. The main task to fulfill this stage is the creation of efficient entrepreneurship.
Several decrees and orders were issued to defend the rights and legal interests of the entrepreneurs, to establish transparent link mechanism between official bodies and entrepreneurship structures, and to enhance business environment.
The most important among them are decrees of the President of the Republic of Azerbaijan dated September 28, 2002 and accordingly of the Chairman of the Supreme Assembly of Nakhchivan Autonomous Republic dated September 30, 2002, "on prevention of the interferences hindering the development of entrepreneurship". Being adopted to overthrow many factors exerting bad influence on the development of market economy, they are significant to defend the rights of entrepreneurs. The interferences of several central and local executive bodies into the enterprises were prohibited by the orders, an effective relation system were set up, and the efficient usage of "Supervision Book" was ensured through surveillance system employing to register controls in enterprises.
The social union of the entrepreneurs, the Confederation of Entrepreneurs (Employers) of Nakhchivan Autonomous Republic and the autonomous republic organization of the Trade Union Committee of Enterprise Workers were established with the aim to pursue the interests of the entrepreneurs and to coordinate their works in the Nakhchivan Autonomous Republic. In recent years, much has done to conform the tax system to the development of entrepreneurship. Consequently, the degree of profit tax and VAT, and compulsory insurance fee were decreased. Common tax measures, moreover, are valid for small-scale enterprises.
To organize business forums, meetings and conferences aiming at development of the entrepreneurship activity of the autonomous republic, as well as to promote local products and their sales there was created a Business Centre in Nakhchivan city.
Apart from the above-mentioned, "The State Program on the Implementation of Employment Strategy in the Nakhchivan Autonomous Republic" was approved in order to make more efficient use of labour resources and to ensure the effective employment of population.
The remarkable accomplishments in the Autonomous Republic’s economy and social sphere paved the way to increase the employment rate. From October 1, 2003 to January 1, 2014, 59369 new jobs were created in the Autonomous Republic, of which 42890 or 72.2 per cent were permanent. 2092 or 92.6 per cent out of 2260 new jobs were permanent in 2013.
The employment centres and job fairs organized in the territory of the Autonomous Republic at present are of great importance to ensure the employment of population. Also, the Regional Vocational Training Centre in Nakhchivan under the Ministry of Labour and Social Security of Population of the Nakhchivan Autonomous Republic was established in order to arrange the vocational training, retraining and capacity-building activities of unemployed citizens.
Successive measures are being implemented for the development of entrepreneurship, which is the leading force in the economy of the Autonomous Republic.
In the nine months of 2022, 36 million 913 thousand 400 manat credits were allowed to entrepreneurs in the autonomous republic. Out of this total, 12 million 284 thousand 500 manats of the given credit were allocated for the creation or expansion of new production areas, and 24 million 628 thousand 900 manats were used for the development of individual entrepreneurship. During this period, 11 legal entities and 2,254 individuals have been registered.
The attention paid to entrepreneurship has resulted in the production of 384 types of products in the Nakhchivan Autonomous Republic during the year 2022. Out of these products, 127 are food items, and 257 are non-food products. With 108 food and 242 non-food items, the demand for 350 types of products has been entirely met using local resources.
To increase employment and enhance the prosperity of the population in the Autonomous Republic, and to meet the demands of the labor market through workforce training and expanding self-employment opportunities, the "State Program on Increasing Employment in the Nakhchivan Autonomous Republic for the Years 2021-2025" was approved by the decree of the Chairman of the Supreme Assembly of Nakhchivan Autonomous Republic on January 28, 2021.
The average monthly wage for an employee in the period from January to August 2022 amounted to 595.6 manats in the Nakhchivan Autonomous Republic. This represents an increase of 9.4% compared to the corresponding period in 2021.
During the months of January-March 2023, a total of 66,885,000 manats of credit were allowed by the banks and credit organizations operating in the Nakhchivan Autonomous Republic and the Entrepreneurship Development Fund of the Nakhchivan Autonomous Republic. 4 million 410 thousand manats or 6.6 percent of the granted loans were allocated for industrial sector, 6 million 493 thousand manats - 9.7 percent for trade, 4 million 434 thousand manats or 6.6 percent for agriculture, 51 million 548 thousand manats - 77.1 percent were allocated to other sectors.