Azerbaijan, Baku, Oct. 7 / Trend, A. Akhundov /
The World Bank (WB) stressed the low level of Azerbaijani entrepreneurs' aspiration for innovations, a WB report on "Entrepreneurship promoting in Azerbaijan".
While preparing the report, the activity of 400 companies created from 2002 to 2010 and operating in 24 areas of the non-oil sector of the country's economy was examined.
According to the report, only 12 percent of companies presented new products and services for the last three years. Moreover, 97 percent of companies do not have any plans in this area for the next two years.
The results showed that 90 percent of companies have one founder. Only three percent of the founders are women. Around 62 percent have a bachelor's degree and 27 percent have higher degrees.
Respondents cited two main reasons that prompted them to do business - the desire to earn more and be the master of the business.
The companies' staff on average consists of 44 employees. Around 96 percent of the company's funds were formed by the founders' personal savings.
"There are three main obstacles for establishing the companies and ensuring their activity, namely, difficulty in raising the necessary funds, initial investments and business partners," the report said. "Among the legal and regulatory difficulties are the gradually changing tax regulations and legislation on bankruptcy."