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.
State fiscal support system to the entrepreneurs has been formed and is being developed. The state financial assistance to entrepreneurs were increased and the finance mechanisms of investment projects of the entrepreneurs with easier conditions were improved by the decree of the President of the Republic of Azerbaijan dated August 27, 2002, on "the affirmation of the Statue of National Assistance Fund of the Republic of Azerbaijan to Entrepreneurship" and accordingly the resolution of the Cabinet of Ministers of the Nakhchivan Autonomous Republic on December 03, 2002. Transparent and simple mechanisms of credit allocation are included in "the Regulations regarding the Allocations of National Assistance Fund to Entrepreneurship" affirmed by relevant decision. The measures fulfilled ensured the creation of reliable financial exchange system of the small- and middle-range entrepreneurs thanks to the state budget by means of the Assistance Fund to Entrepreneurship.
With regard to the registration of entrepreneurship "single window" system has been launched since 1 January 2008 according to the Order of the President of the Republic of Azerbaijan dated 25 October 2007 in order to stimulate the entrepreneurship activity and to overcome current obstacles.
In the framework of the entrepreneurship registration 24 legal entities and 1162 individuals had been registered in the autonomous republic in 2013.
In 2013 banks and lending agencies issued loans in the amount of more than 49 million 765 thousands manats.
Nowadays there are 346 varieties of products produced locally. 115 of them are foodstuffs and 231 are non-food products. Demand for 332 types of products, including 106 foodstuffs and 226 non-food products, is supplied at the expensive of local production.
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.