Aveneu Park, Starling, Australia

Small the way they improve the business is

Small
business is privately owned enterprise that has fewer employees and less
revenue than regular businesses. The term “small” is defined when it needs
government support. Small business can be retails, hairdresser, grocery,
restaurant, web-design, computer programming and so on. ( book: Ebert/
Griffin, Business essentials, 9th edition, chapter 3, page 60) Nowadays,
small entrepreneurship has been improved in Azerbaijan compared to past
years. The reason is that, people are in favor of working for themselves
rather than having boss or director and waiting for the salary which they
will be provided by. Also, the need for income pushes them to act. It is not
beneficial for youth specially. Entrepreneur is the one who comes with an
idea and builds his own business. So, if you have an idea, go ahead. You are
free to run your business while you pay all the tax required. In Azerbaijan
it is utterly not difficult, as we do not pay 30-50 percent of our profit
like in European countries or USA. Nearly, I read the news which was about
young entrepreneur in France and paid 80 percent of his profit (1 mln) as tax
to the government. Fortunately, our tax system is not similar to theirs.
Since the salary level is not similar, not similarity of tax is logical. I know
so many young entrepreneurs in Azerbaijan and the way they improve the
business is marvelous in spite of volatile situation in Azerbaijan economy.
For example; Naveen (fashion brand), Selfie dolls (doll brand), Inci handmade
and etc. I experienced Naveen’s pattern, since it is my friend’s business and
I help her to manage marketing sales. This brand which is known “made in
Azerbaijan” has positive effect to Azerbaijan GDP in long-run. Its strategy
is driving the fame of brand to foreign countries and make it qualified
Azerbaijan brand in worldwide. ( my own experience and words, no reference
available for it) Entrepreneurial action is essential to the proceeded with
dynamism of the private part, as the age of new organizations cultivates
rivalry and financial development. This is especially important for
Azerbaijan, whose government faces a focal test to make conditions that will
encourage development in nonoil tradable sectors. The center goals of
Azerbaijan’s improvement methodology are to differentiate the economy far
from the oil segment and support high employment and growth respectively.
Empowering high-growth business enterprise can enable Azerbaijan to
accomplish goals of it while it meets new opportunities in famous and precise
sectors in emerging markets.
(http://documents.worldbank.org/curated/en/863421468221975050/Fostering-entrepreneurship-in-Azerbaijan)
There is a statement which I owe my success in my entire life: “if there is
no struggle, there is no progress” by Frederick Douglass. Let me explain the
relation between the statement and small entrepreneurship pattern in
Azerbaijan. As there are few small businesses in Azerbaijan, the less
competition there is. People get motivated and hard-working only if they see
there are more rivals than they expected. In case of rival existence more
competition arises. It leads to struggle and dare being the best in the
market. The problem in Azerbaijan is the lack of small businesses which means
little competition. Competition is the main thing which stimulates
entrepreneurs. (my own words and experience) The stimulation puncts can be as
follows: 1. Government can provide trained business managers. They can have
stimulation affect for businesses, so entrepreneur will be confident about
success, feel free to take risk and improve it. 2. Decreasing cost of failure
would be good news for entrepreneur, as a result it will go further steps
without fear of anything. 3. Provision of capital financing by government
when there is need for business or probability to fail.
(http://documents.worldbank.org/curated/en/863421468221975050/pdf/810480PUB0Fost0Box379819B000PUBLIC0.pdf
; page 29) 4. To improve networking services for enhancing turnover of
information among investors. 5. Tax reduction. Government should consider the
proportion of tax that small business will recognize. Burden of tax has main
role in the behavior of SB. 6. Make contract with financial consulting
service. 7. Access to the world market.
(https://www.oecd.org/cfe/smes/2090740.pdf ; page 47) Apart from these above
mentioned points, there are different ways to stimulate the small business.
In my opinion, first solution, if government in volatile situation, it can
organize some regional training in order to keep the entrepreneur motivation
high and make them think in optimistic way. In those trainings, it can
explain the current situation to audience and listen their problems. Trained
managers or professionals will be there to answer the questions. Somehow,
entrepreneurs are going to take notes and think in comprehensive way.
Secondly, government can make a campaign like the provision of financing to
the one which is in the first place in annual statistics. Thirdly, declaring
bank credit for them with minimal interest rate. Furthermore, if the
entrepreneurship activity lives on imported goods, government can decrease
custom tax, so there is possibility to enlarge the production size and
contribute to economic performance. ( my own words and experience) Summary
The thought is to give SB some impermanent money related alleviation to keep
their entryways open and recover their income on track so they can keep up
existing occupations and at last make new workplace. It is the spark of
prosperity and the way seeing the world in different way. SB is focusing on
talent and discover it among people. Azerbaijan hardly manages to stimulate
as it is something new for our country. For sure, it will take some time for
improving and diversifying the types of SB. Hope, the government will manage
after few years to give real expected value to small businesses.

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