The Small and Medium Business Development Agency (KOBİA), the Central Bank of Azerbaijan (CBA) and the Asian Development Bank (ADB) are discussing the development of a taxonomy and common approaches to supporting small and medium-sized enterprises (SMEs).
As Day.Az reports with reference to Trend, the deputy chairman of KOBİA said this Elnur Aliyev during a panel discussion on the topic “Supporting SMEs in the green transition” during the third day of the international conference at Climate Action Week in Baku.
“KOBİA does not yet have its own financial instruments and support mechanisms. In many countries, such instruments have already been introduced – various business development programs have been developed. However, such mechanisms are not yet available in Azerbaijan. However, we are closely cooperating with the Central Bank in this direction. Even at At the secondary school level, the need to adapt business to new conditions and processes is discussed, as well as studying how small and medium-sized enterprises can use the experience of large companies in their activities,” Aliyev said.
According to him, KOBİA is confident that adaptation should lead to concrete practical results.
“This is not only about financing, but also about creating a favorable regulatory environment and clear rules of the game in the market. We understand that the Central Bank must develop its own rules and approaches that will be consistent with the overall financial system of the country. This process is complex and sensitive, but we are working closely with the Central Bank to achieve harmonization. Moreover, we have involved the Asian Development Bank in discussions to jointly develop a taxonomy and common approaches to support small and medium-sized enterprises. The process is currently ongoing, we are consulting with experts, and this initiative. takes time to implement,” he noted.
Aliyev mentioned that small businesses should also improve their level of transparency and corporate governance.
“Financing is always a matter of trust between the investor and the company. The investor wants the funds provided to be returned on time and in accordance with the contractual terms, and the company strives to make the most efficient use of the resources received. In this regard, an important factor is the transparency of reporting and the level of management of the company For successful cooperation, both parties must take into account each other’s interests, and it is especially important for small and medium-sized enterprises to implement the principles of transparency and accountability. We cannot force financial institutions to work on terms that do not meet their interests. However, the process is moving in the right direction. We are confident that the approach to supporting small and medium-sized enterprises must change for the better. We see that small and medium-sized businesses must adopt best practices and adapt to new conditions. This applies not only to Azerbaijan, but also to global experience. large businesses and their degree of development vary around the world. Our initiative aims to bring local processes closer to global standards. I am confident that with a global approach, local changes will occur more effectively,” he added.