Which spheres in Azerbaijan are most favorable for starting business?

In the time when the pandemic put economic sectors before challenges, people consider it risky to start a new business. However, business relations have a specific place among current living conditions.

Which spheres in Azerbaijan are most favorable for starting a business?

Report asked this question to several economic experts.

Economic expert Eldaniz Amirov said the entrepreneurs to operate in the Alat Free Economic Zone and around it have great chances for success:

"Works are currently underway to create the Alat Free Economic Zone. The entrepreneurs functioning in this zone and its surrounding area are divided into three groups. International production companies and companies oriented to export, manufacturing innovative products and services, applying new technologies, and creating new jobs in this sphere will be given preferences. Meanwhile, there are no preferences for other companies supplying them with goods and services. A group of them will offer various services to foreign investors to operate inside the zone. The second group of entrepreneurs will locate outside the free economic zone and provide key investors with goods and other means. Today, the entrepreneurs who may operate in these two directions there have a great chance for success."

The expert also listed other areas:

- Fodder production with the application of new technologies

This sector is now out of practice in Europe and has achieved great success. In a small enclosed space, it is possible to obtain more than a large area and supply fodder that would suffice for a longer time.

- Carefully developed startups that meet the requirements of the time

The development of specific mobile applications is among the best spheres for achieving success today. For example, we know that today all parents complain that their children watch mobile phones too much and uninterruptedly play games. So, it is possible to develop such an app to enable parents to control and limit the time their children use a mobile phone or play games on a PC. Such an app would be in great demand once developed.

- Tourism

White spots in tourism services can be used for success in Azerbaijan. For example, new Tourism Stories can be added to this sphere to attract a great tourist flow. What is a tourism story? For example, in order to attract tourists to the liberated areas, one can create stories by enlivening the scenes depicting the courage of our heroes in these areas. Another example – let's take the Galasan Gorasan tower in Shaki and Maiden Tower in Baku. Each of these towers was a witness to well-known events. This is a story. If these stories are presented to tourists through visual demonstrations in any form, it will be possible to achieve a great effect. Here we can add adventure tourism too.

- Cattle-breeding

The cattle-breeding sector is currently among the best agricultural spheres in Azerbaijan once the work is organized correctly. However, it is necessary not to sell the products right from the farms but to process them seriously to ensure profitability. Well-processed goods have the potential to bring more revenues in this sphere.

"There are some spheres that can always bring revenues. However, to achieve this, it is necessary to beat competitors for the quality of the work and services. As an example, we can list the beauty services at home," the expert said.

Expert in business sector Rajab Mehdiyev has offered new forms of business that can be successful during the pandemic.

"Online sales grew more relevant during the pandemic. People had to order things online. It is possible to create a unified online platform by centralizing some systems. For example, a man lives in a certain area and registers the products he is to buy. Using your platform, he can see the product's prices in different supermarkets and choose between the supermarkets near him. Each supermarket has different prices on products. In this case, the platform advertises both the supermarket and the companies selling the products. In this way, the platform will gain profit. On the other hand, the platform can post ads that will also bring profit to it. Naturally, there must also be delivery services. This service can either be created by the platform or ensured by the supermarket."

Economic expert Gunay Huseynova listed different business spheres that can bring success:

"Business can be large-, small- and medium-sized for its profitability. Small-sized business is considered most profitable. As the share of essential goods is great in this business, it is considered more profitable. Today, business related to startups, technology, service sector, e-trade, programming, food is considered profitable. The demand for these spheres has risen dramatically compared to the 1990s. While there were 1-2 phone or electronic device brands earlier, they are now calculated in hundreds. This is directly linked to demand. Offer also grows depending on demand. New technological inventions breed new spheres (for example, production of spare parts)."

The expert included electronic trade, food, and various services to this list:

"E-trade is the second type of business. This sphere started developing over the past five years. It intensified in our country during the pandemic. This sphere brings huge revenues at minimum cost.

The services sector is also among profitable spheres. Nowadays, due to the integration and digitalization in most areas, this field is also developing due to technology development and is among the most profitable businesses.

Another business sector is the food sector, which is one of the leaders among profitable businesses. Even its collapse and crisis have not weakened the demand for this sector. People spend most of their income on the food sector. This area is considered profitable due to the availability of essential goods."