Financing of Smes in Azerbaijan world wide Experience in Mechanism Improvement

Abstract

The article is devoted to the study of the features of the financial and credit mechanism of SME support in foreign countries in order to identify the main directions of the development of financial and credit support to SMEs in Azerbaijan. Thus, it is necessary to effectively seek and improve the mechanisms used to support small and H Maliyev : World experience in improving the financing mechanism of SMEs in Azerbaijan medium enterprises, and one of such mechanisms could be a financial-credit mechanism through the issuance of state guarantees to SMEs, as well as the compensation of part of state guarantees. The purpose of this article is to study the problems of financing and lending to SMEs in Azerbaijan, to identify theoretical approaches to financial support to SMEs, key concepts, features of formation and historical development paths, as well as to analyze the effectiveness of financial and credit mechanisms to support it consists of. The research was carried out mainly on the basis of scientific abstraction and systematic approach, logical generalization. The study concludes that it is expedient to use successful foreign experience in providing credit support to SMEs, and to expand its use, it is necessary to improve the financial and credit mechanism to support SMEs and simplify the procedure for obtaining it.