CBA: Azerbaijani SMEs have low potential to create added value

The ability of small and medium-sized enterprises (SMEs) in Azerbaijan to create added value remains extremely low, Rustam Tahirov, Director of the Department of Sustainable Development of the Financial Sector at the Central Bank of Azerbaijan, said at the seminar "Monitoring Small and Medium Enterprises in Asia 2025" held in Baku.

Tahirov noted that banks remain the main external source of financing for SMEs.

"SME loans account for about 25% of the total credit portfolio and 47% of banks" business portfolio. This indicates growing interaction between banks and the real sector of the economy. However, in the event of fluctuations in the credit cycle, SMEs may face difficulties in obtaining financing," he said.

The regulator"s representative also noted that SMEs provide almost half of national employment, but their contribution to the economy remains limited.

"We see that the ability of SMEs to create added value is very low," Tairov emphasized.