ADB identifies key challenges for MSME development in Azerbaijan

Limited access to financing remains a key challenge for micro, small, and medium-sized enterprises (MSMEs) in Azerbaijan, said Khagani Karimov, Senior Economist at the Asian Development Bank (ADB) Resident Mission, said at a media briefing dedicated to the presentation of the April edition of the Asian Development Outlook, Report informs.

"This year, we chose the challenges facing small businesses as a priority area. We are convinced that MSMEs are critically important for the diversification of Azerbaijan's economy. This sector plays a vital role both in ensuring employment and in reducing dependence on raw material resources. In recent years, numerous institutional reforms have been implemented aimed at strengthening state support for MSMEs," noted Karimov.

At the same time, according to him, the ADB continues to identify a number of serious challenges.

"As in many other countries, limited access to financing persists. This is a systemic problem: small businesses need specialized, tailored financial instruments and mechanisms that will enable broader access to capital. In addition, issues of financial literacy, availability of credit resources, and collateral provision remain unresolved. These problems are particularly acute in the regions outside major cities," the economist added.