SMALL AND MEDIUM ENTERPRISES AS THE KEY DRIVING INDICATOR FOR THE ECONOMY OF THE AUTONOMOUS REPUBLIC OF NAKHCIVAN

Abstract

Achieving balanced regional development are among the priorities of socio-economic policies for countries in the global context. The development of entrepreneurs (especially SMEs) is considered the major driving factor for achieving targeted goals. SMEs play a significant role in regional economic development by creating new employment opportunities and the production of competitive items. As an integral part of Azerbaijan and bordering 3 neighboring countries, the Autonomous Republic of Nakhcivan (hereinafter Nakchivan MR) has a rising share of interest of SMEs in the economy. The purpose of the research is to suggest offers by analyzing the real effects of SMEs on the regional economy.In the study, the methods of matching the official statistics on the activity of SMEs in Nakhchivan MR were used, following the characteristics of the economy and development potential. As a result of ensuring the balanced development of the capital and regions in the "Socio-Economic Development Strategy" of the Republic of Azerbaijan in 2022-2026, it is planned to increase the share of regions in the total output from 35% in 2020 to 42% in 2026 thus covers the applied importance of the research work. As a result of the research, it was revealed that the main driving indicator of development in the economy of Nakhchivan MR is in parallel with the development of SMEs operating here.