Enterprise Azerbaijan: Supporting local startups during pandemic - important
BAKU, Azerbaijan, May 1
By Sadraddin Agjayev - Trend:
The rules of market relations are changing amid the fight against the pandemic in Azerbaijan, Enterprise Azerbaijan website manager Oruj Dursunzade said.
"The authorities of several countries have recently begun to allocate a huge amount of resources for the development of startups,” Dursunzade added, Trend reports referring to the Azerbaijani Center for Economic Reforms Analysis and Communication.
“In the current situation, the importance of supporting startups in the world, as well as in Azerbaijan, has increased," the manager said.
The manager also stressed that the negative impact of the quarantine regime on the Azerbaijani economy is an inevitable factor and micro-entrepreneurs (start-ups) are on the list of those suffered as a result of the pandemic.
“In this regard, a package of state support programs for various sectors of the economy and business has been adopted in Azerbaijan in accordance with the decree of Azerbaijani President Ilham Aliyev,” Dursunzade said.
“In total terms, its budget exceeds three billion manat ($1.8 billion), covering 292,000 individual (micro) entrepreneurs who have suffered the biggest damage,” Dursunzade said. “To prevent the staff reduction, the Azerbaijani government pays salaries to 304,000 hired employees in 20 spheres.”
“Moreover, tax incentives and tax holidays will be applied for business entities working in the spheres affected by the pandemic,” the manager added. “The package includes financial support in the field of mortgage and credit guarantees of business entities and guarantee support for their current loan portfolio.”
“Presently, all structures in Azerbaijan are working intensively and each entrepreneur may appeal to the government for financial support in accordance with certain criteria," Dursunzade said.
“The French government has stated that it will launch a support plan for startups affected by the pandemic in the amount of four billion euros,” the manager said. “This plan includes a planned short-term start-up refinancing scheme worth 160 million euros in this sector, the early payment of some tax refunds in the amount of 1.5 billion euros and investments worth 150 million euros.”
“Germany has promised welfare to young innovative enterprises in the amount of two billion euros,” Dursunzade said. “Moreover, the government is considering the allocation of 10 billion euros for bigger startups.”
“The UK with the leading European ecosystem of innovations has exempted the infrastructure of entrepreneurial activity on business calendar for 2020-2021 from property tax and has rendered financial assistance to the enterprises operating in the field of trade and services in the amount of 25,000 pounds sterling,” the manager said.
“The US has delivered the loan guarantees worth billions of dollars, the expanded emergency loans and grants through the small business management structure,” the manager said.
“The companies that meet the criteria for applying for such support may contact the small business management structure to get a loan worth up to $10 million,” Dursunzade said.
“In case of stable maintenance of current expenses, the business may count on receiving a loan in the form of a grant, part of which can be used to increase salaries, pay rental fee and utilities," Dursunzade added.
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