Econometric analysis of factors influencing the development of small and medium enterprises: the case of Azerbaijan

Abstract

The development of small and medium businesses is the main driving force in the sustainable economic development of the country. The main reasons for this are that the development of small and medium enterprises is of exceptional importance in terms of diversifying the economy, increasing its competitiveness, ensuring employment. To achieve these goals, a Strategic Roadmap has been developed to ensure the competitiveness, inclusion, and sustainability of the economy in the Republic of Azerbaijan. Research shows that small and medium enterprises should be considered as a socio-economic system with the characteristics of an economic-cybernetic system. Therefore, a mathematical modeling mechanism of quantitative analysis should be used to establish optimal behavioral and development strategies for this economic-cybernetic system. We will use the econometric research mechanism of mathematical modeling, especially the correlation-regression analysis mechanism, to quantify the impact of environmental factors on small and medium enterprises. In the process of research, data characterizing the activities of small and medium enterprises in the country will be used as a statistical basis.