The role of multi-stakeholders’ intervention in

Transcript:The role of multi-stakeholders’ intervention in:
The role of multi-stakeholders’ intervention in the sustainability of digital start-ups CASE OF AZERBAIJAN Rauf Jabarov Director, Electron Government Education and Training Center, under the Ministry of Transport, Communication and High Technologies of Azerbaijan Republic Oxford, 09 October 2017 Content 1. 2. 3. 4. Start-up ecosystem in Azerbaijan Start-ups sustainability Multi-stakeholders’ intervention Supports for start-ups Problems and challenges 5. Azerbaijan and startup ecosystem Azerbaijan and startup ecosystem The goal of this talk How can digital start-ups contribute to economy if they are not sustainable business? What are the reasons of startups’ unsustainability, in other words, why are they not enough successful in developing countries? Research focus To what extent Azerbaijan startup ecosystem is a supportive system for startups? Analyzing all supportive stakeholders from startup environment by looking at the intervention of the support process. Analytical framework Analytical framework "If we do not know what start-up needs, then we do not know how to support them” Stakeholders form startup environment Multi-stakeholders support Support forms: Legal/institutional; financial/economic; human/social; Technology/infrastructure Method of support: Policy, institutional development, innovation infrastructure (e.g., techno parks, business incubators, accelerators); venture investment; resource provision (e.g., human, skills, information, consultancy, coaching, mentoring) Legal/institutional support Opportunities Single tax - 4% rate for early stage start-ups Single online window or one-stop shop for acquiring license or permit Simplified tax regime through all country for SMEs Free tax zone in techno parks Simplified system of business registration, business licensing and permits Real provisions Challenges No regulation on innovation No regulation for venture Lack of Intellectual property protection high rate tax for later stage (20% profit tax) No institutional intermediaries – lack of embeddedness Financial / economic support Opportunities Grants for early stage 77 start-ups received more than $1M in total from 2013 till now from state funds National Fund for Entrepreneurship Support provides bank loans with low interest rate (though the number of digital start-ups is few) Science Development Fund and State Fund for Development of IT provide grants for digital start-ups Real provisions Challenges High interest rate No specified bank loans for SMEs No VCs in the market Weak access to VCs in abroad Lack of later stage funding Lack of stock market Small market size Opportunities Graduates from IT schools 10 start-up competitions each year Mentoring support in 6 University based incubators Coaching in 3 acceleration programs ADA university, State Oil and Industry University, Engineering University and Technical University recently established