BAKU, Azerbaijan, Sept.9
Trend:
Between 2019-2020, 26,684 small and medium-sized (SMEs) in Azerbaijan received support through the EU4Business Initiative, Trend reports with reference to the EU data.
“A total of 700 entrepreneurs received loans with a total value of 5.7 million euros under EU programmes that supported SMEs. Over 24,000 consultancy services were delivered to SMEs. The income of these supported SMEs rose by 13 percent in 2020 amounting to almost 34.0 million euros, and 1,275 new jobs were generated as a result of this support in 2020 alone,” said the organization.
The EU offers financing and guarantees through local financial institutions to unlock lending. This makes it possible for the local lender to provide more affordable financing to SMEs. For instance, one could benefit from lower-interest loans, longer repayment terms, and loans based in manat instead of foreign currencies.
The EU offers a wide range of options for different types of SMEs. For instance, the EU provides concessionary loans to underserved micro-enterprises and low-income households, as well as SMEs in the agri-food sector, retail and other businesses carrying out major energy efficiency investments.
To support SMEs, the EU provides considerable funding for business development services in Azerbaijan. The EU assists local business associations and agencies, leading to SME growth.