THE ROLE OF SMALL AND MEDIUM ENTERPRISES IN THE ECONOMIC SYSTEM AND DEVELOPMENT PERSPECTIVES

Abstract

In the modern world economy, small and medium-sized enterprises (SMEs) have become a driving force of economic dynamics in both developed and developing countries. This article, in the first stage, comparatively examines the SME policies of the European Union, the United States, China, South Korea, Japan, and Turkey, identifying distinct parameters of state support models. In the second stage, the current state of the SME sector in the Republic of Azerbaijan — including statistical indicators, the legal and regulatory framework, the activities of KOBİA (the Small and Medium Business Development Agency), and international financial support — is comprehensively analyzed. The research reveals that while the growth potential of Azerbaijan’s SME sector is high, limitations in access to finance, skills shortages, and digital adaptation problems require structural intervention. Based on a comparative analysis of foreign experience, policy recommendations are put forward.