Business for Yourself: Why the Number of Individual Entrepreneurs Is Growing in Azerbaijan

The number of individual entrepreneurs in Azerbaijan is impressive. But what lies behind the high statistical figures, and what measures are needed to further stimulate small business in the country? We explore this with our experts.

The entrepreneurial sector demonstrates rapid growth where digital infrastructure is actively implemented, incentives are in place, and the registration process is simplified. The large-scale transformations of recent years introduced in our country - from the deployment of turnkey electronic services to the implementation of flexible tax regimes - have significantly facilitated citizens' entry into commercial activity, writes the newspaper "Kaspi".

Creating work for themselves

Published data from the State Statistics Committee supports this trend with clear figures. As of July 1, Azerbaijan has 1,486,926 officially registered private individuals conducting business without forming a legal entity. In the structure of registered accounts, there are 1,130,984 men, while women account for 355,942 individuals.

Of course, behind the single legal formulation of "individual entrepreneur" (IE) status, there are different motivations and economic behavior models. On one hand, entrepreneurs who are initially oriented toward creating their own business enter the market. They operate based on a calculated business plan, have the necessary startup resources, and consciously choose an independent path to manage their work schedule, implement innovative ideas, and build a sustainable business as they see fit.

On the other hand, a certain portion is formed by a micro-segment arising under the influence of cyclical fluctuations in the labor market. Unable to find employment for one reason or another, citizens choose IE registration out of necessity - as an accessible mechanism for providing themselves and their families with income.

This category of business is objectively the most sensitive to any external challenges. Under conditions of acute shortage of free working capital, the owner is forced to combine all key functions - from organizer to accountant, since there is simply no opportunity to hire staff.

The state is interested in increasing the number of those who create work for themselves and, where possible, for others. At the same time, there are areas that receive special attention. A vivid example of this policy was the amendments to the law "On Customs Tariff" approved by the Milli Majlis in the first reading. According to them, from July 1 of this year for