BAKU, Azerbaijan, March 13. Cooperation between bp and the Azerbaijani Small and Medium Business Development Agency (SMBDA) will positively impact the growth of profitability in the regions, SMBDA Board Chairman Orkhan Mammadov said, Trend reports.
Mammadov made the remark at the signing ceremony of a memorandum of understanding between SMBDA and bp.
"The Memorandum of Understanding signed today will determine the forms and mechanisms of interaction between the Small and Medium Business Development Agency and bp within the framework of the program on the support of the development of small and medium businesses,” he noted.
“The projects implemented within the framework of this cooperation will have a positive impact on increasing the level of profitability of local communities in the regions and will contribute to the development of self-employment by creating new enterprises and jobs. At the same time, the experience of this cooperation structure will be used in the implementation of other projects ", the board chairman also said.
Mammadov reminded that bp has been operating in Azerbaijan for more than 30 years. During this period, the company has constantly carried out safe, responsible, and efficient economic transactions with Azerbaijan in the implementation of a successful oil strategy, and has made large investments in the country’s economy.
He noted that over the years bp has played an exceptional role in the introduction of new technological solutions in Azerbaijan.
“The company has made significant contributions in areas such as creating world-class construction and manufacturing facilities, promoting social development by opening tens of thousands of jobs, supporting areas such as professional growth, improving education, and promoting sustainable development in hundreds of rural communities,” the board chairman pointed out. “Besides, bp works with innovative partners which are leaders in their fields to deliver high-quality social investment projects and deliver sustainable results.”
According to him, the established partnership framework between SMBDA and bp was reflected in a Memorandum of Understanding signed in December 2018, and they have since worked on a number of joint initiatives.
For several years, bp has been a sponsor of the "EY Entrepreneur of the Year" competition, held in partnership with the agency, Mammadov said.
SMBDA cooperated with bp in organizing exhibitions and fairs, where special attention was paid to the participation of women, people with disabilities, and start-ups, he noted.
"The document [memorandum of understanding] refers to the organization of interaction in order to support the development of small and medium-sized businesses, expand practical ties between the public and private sectors, educate entrepreneurs, implement various sustainable development initiatives in Azerbaijan, including social projects aimed at supporting skills employment and entrepreneurial activities of low-income persons,” the board chairman said.
Moreover, the document regulates interaction, especially in regions where oil and gas pipelines run, as well as in industries that serve to support entrepreneurial activities throughout the country, Mammadov added.
As he further noted, bp is one of the companies with progressive corporate governance in the private sector. Being a participant of important projects in Azerbaijan, it actively works in the field of application of advanced technological equipment, implementation of various innovations and social responsibility.
“SMBDA pays special attention to establishing mutually beneficial cooperation relations with public and private organizations in order to create new business entities, support the development of micro, small and medium-sized businesses, more efficient organization of entrepreneurial activities, and increased professional responsibility in business management,” the board chairman said.
He also said the agency’s mandate allows donor organizations and non-governmental organizations to coordinate projects and implement joint initiatives in support of start-ups and entrepreneurs.
“As part of this cooperation, we can provide support measures to expand the scope of involving the country's population in entrepreneurial activities, including ensuring self-employment of the low-income population, as well as coordinating such initiatives of public and private organizations,” he explained.
Mammadov also pointed out that over the past period, the agency, within the framework of cooperation with the Ministry of Labor and Social Protection of the Population of Azerbaijan, has supported the implementation of the self-employment program.
“At the same time, within the ‘Development of Entrepreneurship and Self-Employment in Villages’ project, which started in 2021, 15 rural guest houses were built in Ismayilli district, and 17 in Astara, Lerik and Lankaran districts, provided with the appropriate equipment,” the board chairman said.
The agency provides various support mechanisms and service networks, including SME Development Centers, SME Friend offices, domestic market research support, a grant program, and market entry support, and is involved in the implementation of various projects for SMEs, he noted.
“We believe that pooling shared resources and undertaking joint initiatives with partners in the public and private sectors will improve the results and impact of our activities both quantitatively and qualitatively,” Mammadov also noted.
Besides, this memorandum will create more opportunities for the development, support and implementation of new business ideas of innovative entrepreneurship based on the implementation of joint initiatives, he concluded.
The SMBDA was established under the Decree of the President of the Republic of Azerbaijan Ilham Aliyev dated December 28, 2017.
bp first arrived in Azerbaijan and opened its first office in Baku in June 1992. Over the past years, in partnership with the Government of Azerbaijan and the company’s co-venturers, bp-operated world-class projects – Azeri-Chirag-Gunashli (ACG), Shah Deniz, Baku-Tbilisi-Ceyhan (BTC) and South Caucasus Pipeline (SCP) – have contributed to the development of the Caspian Sea as a modern hydrocarbon province.