ABAKU, Azerbaijan, February 3. Small and Medium-Sized Enterprises (SMEs) are a vital part of Azerbaijan’s economy, making the digitalization of payments they make and receive an important driver for the development of a cashless economy, Trend reports.
This is stated in a research paper titled “The Next Wave of Digitalization in Azerbaijan,” prepared by Mastercard in cooperation with the Central Bank of Azerbaijan (CBA).
The document recalls statistical indicators from previous years and notes that, according to the State Statistical Committee of the Republic of Azerbaijan (SSC), by the end of 2022, 377,842 SMEs were operating in the country, generating added value totaling 17.2 billion manats.
“In recent years, the government has taken significant steps to accelerate the digitalization of SMEs while simultaneously supporting consumer digitalization. Key initiatives include the establishment of the Small and Medium Business Development Agency (SMBDA) in 2018, the provision of relevant support mechanisms through SME Houses, and the launch of the ‘Electronic SME House’ to ensure access to these services via digital channels. Additionally, subsidized loan programs have been introduced to enhance the financial inclusion of SMEs.
To further support SME digitalization and access to credit, a regulatory framework has been adopted, including the creation of a centralized database, and work in this direction is ongoing. At the same time, since 2020, the installation of POS terminals has been made mandatory for SMEs whose turnover exceeds a certain threshold, contributing to an increase in the number of acceptance points in the market,” the document emphasizes.
While SMEs have achieved impressive strides in their digitalization journey, they continue to trail behind consumers and hold substantial opportunities for growth.
“Various indicators provide a clearer picture of their economic contribution and level of digitalization. For instance, while the share of SMEs using banking services in Azerbaijan stands at 85-90%, this figure ranges between 95-99% in Georgia, Türkiye, and Kazakhstan. Another important indicator is the number of business cards per SME: 0.2 in Azerbaijan, 0.3 in Kazakhstan, 1 in Georgia, and 2 in Türkiye.