SMEs cluster to improve competitiveness of enterprises in Azerbaijan
Baku, Azerbaijan, June 29
By Anvar Mammadov - Trend:
The creation of a cluster of small and medium-sized businesses in Azerbaijan will help to improve the competitiveness of enterprises operating within this cluster, Orkhan Mammadov, Executive Director of the Agency for Development of Small and Medium-Sized Enterprises, said in an interview with Trend.
"Clusters are a model that provides both competition and cooperation between small and medium-sized businesses. Entrepreneurs working in similar areas within the same cluster compete and at the same time develop together. Working within such a system gives small and medium-sized enterprises a competitive advantage. As a result, with the introduction of this system, business costs are reduced, marketing opportunities are expanded, and productivity increases, exports increase, and research and development opportunities improve. This leads to manufacturing of new products, creation of new companies, growth of employment, development of regions and improvement of infrastructure services," Mammadov said.
He noted that, the formation of clusters will help the development of the non-oil sector. In addition, the director of the agency added that the creation of clusters for each region will be a priority.
"Formation of clusters is important in terms of opening new jobs in the industry, expansion of industrial production in the non-oil sector, development of services related to industry, support for small and medium-sized businesses in the industry, and improvement of industrial infrastructure and socio-economic development of the regions. Taking into account the potential of the regions, our priority task is to create specific clusters for each region, introduce new products and services in the domestic and foreign markets and take important measures to increase production and exports in the non-oil sector," Mammadov said.
Azerbaijani President Ilham Aliyev signed a decree on the approval of the Statute of the Agency for Development of Small and Medium-Sized Enterprises on June 26.
The decree reads that, a small and medium-sized business cluster-company will be established under the Agency.
The Agency for Development of Small and Medium-Sized Enterprises of Azerbaijan was established on the basis of the decree on improvement of management in the field of small and medium-sized businesses signed by President Ilham Aliyev in December 2017.
According to the decree, houses of small and medium-sized businesses will be established in the country, which will be controlled by the Agency for Development of Small and Medium-Sized Enterprises of Azerbaijan.
Small and medium-sized businesses will provide a number of services, including training, consulting, information, financial and other services.
Follow the author on Twitter: @Anvar_Mammadov