Publication: Fostering Entrepreneurship in Azerbaijan
Loading...
Date
2013-09-04
ISSN
Published
2013-09-04
Author(s)
Editor(s)
Abstract
A dynamic and vibrant private sector is crucial to economic growth, with firms making new investments, creating jobs, improving productivity, and promoting growth. Entrepreneurial activity is pivotal to the continued dynamism of the private sector, as the generation of new businesses fosters competition and economic growth. This is particularly relevant for Azerbaijan, whose government faces a central challenge to create conditions that will facilitate growth in nonoil tradable sectors. The core objectives of Azerbaijan's development strategy are to diversify the economy away from the oil sector and sustain high employment and growth. Encouraging high-growth entrepreneurship can help Azerbaijan achieve these goals as it moves toward new opportunities in value added and tradable sectors. This study shows that high-growth entrepreneurialism is low in Azerbaijan and that innovative activity among firms is very low. Several factors hinder business growth and entrepreneurship: lack of competition, especially among smaller firms; financial systems that are not conducive to business development. Companies cite high interest rates and risk-averse lending policies as substantial hindrances to expansion. In addition, risk capital is in short supply; and lack of industry-relevant skills. The government could play an important role by removing bottlenecks that impede entrepreneurialism in the general business environment as well as by designing new financial policy instruments that foster entrepreneurship and innovation. In doing so, the government needs to exercise care that the design and management of these instruments prevent capture or corruption and promote efficiency. Lack of competition is an issue in Azerbaijan, particularly for Small and Medium Enterprises (SMEs), which face uneven treatment within the enterprise sector.
Link to Data Set
Citation
“Kuriakose, Smita. Kuriakose, Smita, editors. 2013. Fostering Entrepreneurship in Azerbaijan. Direction in Development--Private Sector Development;. © World Bank. http://hdl.handle.net/10986/15781 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication Democratic Republic of Congo Urbanization Review(Washington, DC: World Bank, 2018)The Democratic Republic of Congo has the third largest urban population in sub-Saharan Africa (estimated at 43% in 2016) after South Africa and Nigeria. It is expected to grow at a rate of 4.1% per year, which corresponds to an additional 1 million residents moving to cities every year. If this trend continues, the urban population could double in just 15 years. Thus, with a population of 12 million and a growth rate of 5.1% per year, Kinshasa is poised to become the most populous city in Africa by 2030. Such strong urban growth comes with two main challenges – the need to make cities livable and inclusive by meeting the high demand for social services, infrastructure, education, health, and other basic services; and the need to make cities more productive by addressing the lack of concentrated economic activity. The Urbanization Review of the Democratic Republic of Congo argues that the country is urbanizing at different rates and identifies five regions (East, South, Central, West and Congo Basin) that present specific challenges and opportunities. The Urbanization Review proposes policy options based on three sets of instruments, known as the three 'I's – Institutions, Infrastructures and Interventions – to help each region respond to its specific needs while reaping the benefits of economic agglomeration The Democratic Republic of the Congo is at a crossroads. The recent decline in commodity prices could constitute an opportunity for the country to diversify its economy and invest in the manufacturing sector. Now is an opportune time for Congolese decision-makers to invest in cities that can lead the country's structural transformation and facilitate greater integration with African and global markets. Such action would position the country well on the path to emergence.Publication Entrepreneurship Education and Training Programs around the World : Dimensions for Success(Washington, DC: World Bank, 2014-04-23)Entrepreneurship has attracted global interest for its potential to catalyze economic and social development. Research suggesting that certain entrepreneurial mindsets and skills can be learned has given rise to the field of entrepreneurship education and training (EET). Despite the growth of EET, global knowledge about these programs and their impact remains thin. In response, this study surveys the available literature and program evaluations to propose a Conceptual Framework for understanding the EET program landscape. The study finds that EET today consists of a heterogeneous mix of programs that can be broken into two groups: entrepreneurship education and entrepreneurship training. These programs target a range of participants: secondary and post-secondary education students, as well as potential and practicing entrepreneurs. The outcomes measured by program evaluations are equally diverse but generally fall under the domains of entrepreneurial mindsets and capabilities, entrepreneurial status, and entrepreneurial performance. The dimensions of EET programs vary according the particular target group. Programs targeting secondary education students focus on the development of foundational skills linked to entrepreneurship, while post-secondary education programs emphasize skills related to strategic business planning. Programs targeting potential entrepreneurs generally are embedded within broader support programs and tend to target vulnerable populations for whom employment alternatives may be limited. While programs serving practicing entrepreneurs focus on strengthening entrepreneurs’ knowledge, skills and business practices, which while unlikely to transform an enterprise in the near term, may accrue benefits to entrepreneurs over time. The study also offers implications for policy and program implementation, emphasizing the importance of clarity about target groups and desired outcomes when making program choices, and sound understanding of extent to which publicly-supported programs offer a broader public good, and compare favorably to policy alternatives for supporting the targeted individuals as well as the overall economic and social objectives.Publication Options for Aged Care in China(Washington, DC: World Bank, 2018-11-20)China is aging at an unprecedented rate. Improvements in life expectancy and the consequences of the decades-old family planning policy have led to a rapid increase in the elderly population. According to the United Nations World Population Prospects, the proportion of older people age 65 and over will increase by about one-fourth by 2030, and the elderly will account for about one quarter of the total population by 2050. Population aging will not only pose challenges for elder care but also have an impact on the economy and all aspects of society (World Bank, 2016a). The government is aware of the need to develop an efficient and sustainable approach to aged care. To this end, the General Office of the State Council issued the 12th Five-Year Plan for the Development of Aged Care Services in China and the Development Plan for a System of Social Services for the Aged (2011-2015). It is now in the process of formulating the 13th Five-Year National Plan on Aging, which will further elaborate and finalize the reform roadmap for 2016 to 2020. The Plan is expected to be finalized and launched by June 2016. The National Development and Reform Commission (NDRC) helped draft these plans and is now leading the development of policy measures for the provision of social services for the elderly. This volume has been prepared to support the translation of the broad ideas on aged care provision expressed in the 12th and 13th Five-Year Plans and other government plans into reality and to help the government tackle the challenges described above. It strives to identify a policy framework that fits the Chinese context and can be put in place gradually. Specifically, it aims to provide an up-to-date understanding of the evolving aged care landscape in China; review international experiences in long-term care provision, financing, and quality assurance and assess their relevance to China’s current situation; discuss implications of current developments and trends for the future of aged care in China; and propose policy options based on available evidence and best practices.Publication At a Crossroads(World Bank, Washington, DC, 2017-05-02)Higher education (HE) has expanded dramatically in Latin America and the Caribbean (LAC) since 2000. While access became more equitable, quality concerns remain. This volume studies the expansion, as well as HE quality, variety and equity in LAC. It investigates the expansion’s demand and supply drivers, and outlines policy implications.Publication An Investment Framework for Nutrition(Washington, DC: World Bank, 2017-04-12)The report estimates the costs, impacts and financing scenarios to achieve the World Health Assembly global nutrition targets for stunting, anemia in women, exclusive breastfeeding and the scaling up of the treatment of severe wasting among young children. To reach these four targets, the world needs $70 billion over 10 years to invest in high-impact nutrition-specific interventions. This investment would have enormous benefits: 65 million cases of stunting and 265 million cases of anemia in women would be prevented in 2025 as compared with the 2015 baseline. In addition, at least 91 million more children would be treated for severe wasting and 105 million additional babies would be exclusively breastfed during the first six months of life over 10 years. Altogether, achieving these targets would avert at least 3.7 million child deaths. Every dollar invested in this package of interventions would yield between $4 and $35 in economic returns, making investing in early nutrition one of the best value-for-money development actions. Although some of the targets—especially those for reducing stunting in children and anemia in women—are ambitious and will require concerted efforts in financing, scale-up, and sustained commitment, recent experience from several countries suggests that meeting these targets is feasible. These investments in the critical 1000 day window of early childhood are inalienable and portable and will pay lifelong dividends – not only for children directly affected but also for us all in the form of more robust societies – that will drive future economies.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Fostering Entrepreneurship in Georgia(Washington, DC: World Bank, 2013)Job creation and productivity growth are at the forefront of today's global development agenda. The 2013 world development report on jobs identified entrepreneurship as an important tool in addressing these dual goals. This study uses the entrepreneurship model put forth in the organization for Economic Co-operation and Development (OECD)-Eurostat Entrepreneurship Indicator Program (2009), with minor modifications. The model comprises various determinants that policy can affect and that in turn influence entrepreneurial performance, or the amount and type of entrepreneurship that take place. The model then refers to the impact of entrepreneurship on higher-level goals such as economic growth, job creation, and poverty reduction. This study focuses on determining the level of entrepreneurship in Georgia and analyzes the role of each determinant in both fostering and constraining entrepreneurial activity. Entrepreneurs view opportunities in the economy by measuring their profit-making potential; that is their first motivation. Entrepreneurs will not pursue a societal need unless they can successfully make a profit. Entrepreneurship also depends on various social and individual characteristics of gender and culture. It involves taking risks, and potential entrepreneurs cannot be risk-averse. A fundamental question stemming from analyzing these determinants of entrepreneurship is how to design effective public policy that promotes innovative firm creation and enables existing firms to catch up, improve productivity, and grow. Experiences from Asian countries and developed economies have shown that innovative Small Medium Enterprises (SMEs) and knowledge-based firm creation have played a major role in the development of new national economic advantages. In this context public policy is pivotal in creating an enabling environment that helps alleviate the market failures that inhibit firm growth. Emerging markets have other environmental conditions that are not present (or are less prevalent) in developed markets, and investors considering investing in emerging markets will face added risk as a result.Publication Fostering Entrepreneurship in Armenia(Washington, DC: World Bank, 2013-08-21)A dynamic and vibrant private sector is crucial to economic growth, with firms making new investments, creating jobs, improving productivity, and promoting growth. Entrepreneurial activity is pivotal to the continued dynamism of the private sector, with the generation of new businesses fostering competition and economic growth. This study uses data from the new 2012 World Bank entrepreneurship survey conducted to gauge new firm growth in the formal sector in Armenia and data from World Bank enterprise surveys to analyze innovative activity in existing firms. Armenia has by far the highest level of entrepreneurial activity among the three South Caucuses countries that were studied. Armenia's entrepreneurial culture is built largely on the very strong math and science foundation established during the Soviet era. However, several factors hinder business growth and entrepreneurship. The government could remove bottlenecks from the general business environment that impede able entrepreneurs with good ideas from starting a new venture and creating jobs. This would include strengthening the business environment to allow failure and company exit as a necessary part of entrepreneurial learning, company incentives that favor entrepreneurs with good ideas, instruments that enable entrepreneurs to access capital for startups, and flexible labor market policies that enable firms to expand by attracting the best talent from outside the firm or the country. The ease of paying taxes index and other business surveys continue to cite weaknesses in the country's tax administration, and arbitrary, corrupt behavior by tax officials is a major impediment to the formation and success of Small and Medium Enterprises (SMEs). The Armenian law on bankruptcy prohibits a bankrupt natural person from starting or partnering in a new business for five years, thus hampering the fresh start that should be the goal of a personal insolvency regime. Further, it requires the bankrupt debtor and 'affiliated persons' to submit property and income statements for three years, according to a regulation to be issued, which can serve as a disincentive to follow through with an insolvency proceeding.Publication Industrial Clusters and Micro and Small Enterprises in Africa : From Survival to Growth(World Bank, 2011)The private sector is the engine of economic growth, stimulating entrepreneurship and innovation and promoting competition and productivity. While many countries in Africa have developed private sector-driven growth strategies, private investment as a proportion of gross domestic product (GDP) is only 13 percent in Africa, significantly lower than in other regions, such as South Asia, with many low-income countries. The public sector still occupies the lion's share of economic activity in Africa. This study addresses how industrial clusters could be a springboard for the development of Africa's micro and small enterprise sector, which constitutes the bulk of the region's indigenous private sector. The successful development of industrial clusters in Asia illustrates how small enterprises can help to drive growth led by market expansion at home and abroad.Publication Bulgaria - Investment Climate Assessment : Volume 1. Overview(Washington, DC, 2008-10)Sustained improvements in living standards depend on broad-based economic growth. This will only take place when firms improve worker productivity by investing in human and physical capital and increasing their technological capacity. But firms will only invest when the investment climate is favorable. The goal of the Bulgaria Investment Climate Assessment (ICA) is to evaluate the investment climate in all its operational dimensions and to promote policies to strengthen the private sector. The ICA is largely based on results from the World Bank Enterprise Survey. The 1,000-firm survey was conducted in late 2007 and collects detailed information on firm performance, what managers see as the main obstacles that they face, and objective data on various aspects of the investment climate. Additional sources of information are used to supplement the survey data, including the World Bank's Doing Business Report, a study that provides detailed, comparable data on regulation across the world, data from the National Statistical Institute, and reports from the Government of Bulgaria, the World Bank, the International Monetary Fund, the European Union, academics, and other sources.Publication Garanti Bank SA : Combining SME Banking Excellence with a Proposition for Women Entrepreneurs in Turkey(World Bank Group, Washington, DC, 2014-03)Garanti Bankasi (Garanti) is a regional pioneer in offering products and services specifically targeted towards women entrepreneurs as a specific market segment. In 2006, Garanti created a women's entrepreneur support package specifically designed to help Turkey s women entrepreneurs to establish and grow their businesses. This was followed up with the creation of Women Entrepreneur Gatherings, in 2007, which provided additional training and educational tools and new networking opportunities. And in 2013, Garanti began collaborating with Bogazici University, a top university in Turkey, to offer an intensive mini-MBA training program for women entrepreneurs. Garanti also launched Turkey s first Woman Entrepreneur of the Year award, an initiative that showcases women who have successfully grown their business, encouraging more women entrepreneurship in the country. This case study (the study ) explores how Garanti leaders decided to focus on women entrepreneurs. It also documents and analyzes the bank s efforts to build a profitable and sustainable women in business franchise, through its three-pillar approach, including financial support, client education, and the encouragement of entrepreneurship. The case study also provides insights into how Garanti tapped into, and integrated with its highly innovative, market leading Small and Medium Enterprise, or SME banking franchise to more effectively target women in business. The study concludes with an objective assessment of the results of the program to date, offering suggestions from IFC specialists on how Garanti may further scale up its women in business initiative in the next phase of development.
Users also downloaded
Showing related downloaded files
Publication World Development Report 2014(Washington, DC, 2013-10-06)The past 25 years have witnessed unprecedented changes around the world—many of them for the better. Across the continents, many countries have embarked on a path of international integration, economic reform, technological modernization, and democratic participation. As a result, economies that had been stagnant for decades are growing, people whose families had suffered deprivation for generations are escaping poverty, and hundreds of millions are enjoying the benefits of improved living standards and scientific and cultural sharing across nations. As the world changes, a host of opportunities arise constantly. With them, however, appear old and new risks, from the possibility of job loss and disease to the potential for social unrest and environmental damage. If ignored, these risks can turn into crises that reverse hard-won gains and endanger the social and economic reforms that produced these gains. The World Development Report 2014 (WDR 2014), Risk and Opportunity: Managing Risk for Development, contends that the solution is not to reject change in order to avoid risk but to prepare for the opportunities and risks that change entails. Managing risks responsibly and effectively has the potential to bring about security and a means of progress for people in developing countries and beyond. Although individuals’ own efforts, initiative, and responsibility are essential for managing risk, their success will be limited without a supportive social environment—especially when risks are large or systemic in nature. The WDR 2014 argues that people can successfully confront risks that are beyond their means by sharing their risk management with others. This can be done through naturally occurring social and economic systems that enable people to overcome the obstacles that individuals and groups face, including lack of resources and information, cognitive and behavioral failures, missing markets and public goods, and social externalities and exclusion. These systems—from the household and the community to the state and the international community—have the potential to support people’s risk management in different yet complementary ways. The Report focuses on some of the most pressing questions policy makers are asking. What role should the state take in helping people manage risks? When should this role consist of direct interventions, and when should it consist of providing an enabling environment? How can governments improve their own risk management, and what happens when they fail or lack capacity, as in many fragile and conflict-affected states? Through what mechanisms can risk management be mainstreamed into the development agenda? And how can collective action failures to manage systemic risks be addressed, especially those with irreversible consequences? The WDR 2014 provides policy makers with insights and recommendations to address these difficult questions. It should serve to guide the dialogue, operations, and contributions from key development actors—from civil society and national governments to the donor community and international development organizations.Publication World Bank East Asia and the Pacific Economic Update, October 2023(Washington, DC: World Bank, 2023-10-01)Most economies in developing East Asia and Pacific (EAP), other than several Pacific Island Countries, have recovered from the succession of shocks since 2020 and are continuing to grow, albeit at a slower pace. While the region will benefit from a recovery of the global economy in 2023, high indebtedness, a slowdown in China economy, and trade and industrial policy in other countries will hurt the region. Looking forward, diffusion of digital technologies and policy reforms in the services sector is posed to create opportunities and play an increasing role in the economic development of the region.Publication World Development Report 1987(New York: Oxford University Press, 1987)This report, consisting of two parts, is the tenth in the annual series assessing development issues. Part I reviews recent trends in the world economy and their implications for the future prospects of developing countries. It stresses that better economic performance is possible in both industrial and developing countries, provided the commitment to economic policy reforms is maintained and reinforced. In regard to the external debt issues, the report argues for strengthened cooperation among industrial countries in the sphere of macroeconomic policy to promote smooth adjustment to the imbalances caused by external payments (in developing countries). Part II reviews and evaluates the varied experience with government policies in support of industrialization. Emphasis is placed on policies which affect both the efficiency and sustainability of industrial transformation, especially in the sphere of foreign trade. The report finds that developing countries which followed policies that promoted the integration of their industrial sector into the international economy through trade have fared better than those which insulated themselves from international competition.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication MIGA Annual Report 2023(Washington, DC, 2023-10-17)Celebrating thirty-five years since its founding, in FY23 MIGA issued a record 6.4 billion in new guarantees across forty projects. Through these projects, the Agency remained focused on encouraging private investors to help host governments manage and mitigate political risks. In FY23, as it did during the COVID-19 pandemic, MIGA demonstrated its agility to respond to crisis, employing multiple products during the year to assist the embattled people of Ukraine following Russia’s invasion. An institution of the World Bank Group, MIGA is committed to strong development impact and supporting projects that are economically, environmentally, and socially sustainable. MIGA helps investors mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance. It also offers trade finance guarantees, as well as credit enhancement on obligations of sovereigns, sub-sovereigns, state-owned enterprises, and regional development banks.