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State of SME in Azerbaijan

Also 23.000 farms must be considered what comprises the number of 40.751 private businesses in total.

Thus, despite of the critical condition of the Azery economy the growth in number of registered enterprises is going on. Taking entire market insolvency into consideration such tendency will definitely lead to tuff competition, and only strong and dynamic companies will be able to survive in such environment.

Another factor of the developing market struggle is absence of the mechanism of introducing new technology and know-how (local science is in critical condition due to lack of state support, and Western know-how requires tremendous financial expenses) what considerably narrows opportunities for business development in the country.

Existing companies being restricted by the framework of trade or service are bound to continuously seek new market opportunities and develop own potential via using information-technical support of consulting firms and training centres.

Representations of foreign business and companies with mixed investment

There are approximately 800 foreign companies and enterprises (JVs were mentioned previously) operating in Azerbaijan and representing the sector of oil exploration, extraction and refinery. Out of these 23.5 % are involved in oil extraction and production, 45 % - in wholesale operations, 7.3 % operate in the field of transport and communications and 7 % of construction.

Foreign companies tend to hire highly qualified local labour (what is easy due to jobs deficiency in the country) in order to avoid spending funds and time for training. Nevertheless, these companies experience the need to increase staff qualification from time to time. Doing this with help of local training centres is obviously more beneficial from the view point of expenditure. The only obstacle to such enquiries could be uncertainty in the quality of the training rendered locally.