EBRD pledges support to boost Azerbaijani SMEs and foster innovation

The European Bank for Reconstruction and Development (EBRD) highlighted the untapped potential of Azerbaijan's small and medium-sized enterprises (SMEs), which today account for approximately 15% of the country’s economy.

Speaking to Caliber.Az, Natalie Mouravidze, head of the EBRD’s representative office in Azerbaijan, emphasized the growth opportunities for Azerbaijani SMEs.

“Azerbaijani micro, small and medium enterprises have huge, but not yet fully realized potential,” she said. “Today, SMEs contribute about 15% of added value in the economy and create 50% of jobs, but this is significantly below the average level in the Organization for Economic Cooperation and Development (OECD) countries.”

Mouravidze further revealed that the EBRD is expanding its efforts to support SMEs through trade finance and lending initiatives in Azerbaijan. “Together with our partners, in the coming years we will focus on improving SME competitiveness, developing green finance initiatives, supporting women entrepreneurs, and increasing employment opportunities for young people in the country,” she noted.

While many Azerbaijani SMEs are concentrated in low-value-added sectors such as trade, transportation, and hospitality, Mouravidze pointed out that the future growth of the country’s economy lies in innovation-driven companies. “Companies that invest in innovation will be the drivers of the next stage of Azerbaijan's economic growth,” she said.

A key factor in this transformation is digitalization, according to Mouravidze. “Technology opens up new opportunities for small businesses: it increases efficiency, expands access to markets, and creates equal conditions for competition with larger companies,” she explained. “I would like to reiterate the EBRD's commitment to strengthening Azerbaijan's financial sector. For us, supporting local financial institutions means creating a solid foundation for business growth in the country.”

By Tamilla Hasanova