Page 44 - Azerbaijan State University of Economics

THE JOURNAL OF ECONOMIC SCIENCES: THEORY AND PRACTICE, V.79, # 1, 2022, pp. 34-49

Moreover, delays in the process and rent-seeking behavior due to a lack of
coordination and collaboration between SMEDA and the Mekelle Municipality
office. Further, lack of responsible and accountable officials in the public service.
The other critical challenge for SMEs is the financial regulation of the country
which is not accessible to SMEs.

5. CONCLUSION
Enterprises Majority 46.7% of the respondents agreed that the strategies do not
promote the entrepreneur and human capital, and productivity of SMEs and offer
utmost attention to SMEs rather priority is given to micro, large enterprises, and
foreign direct investment. Though policies and strategies are important to get out of
poverty, it was not implemented properly due to a lack of scientific knowledge and
skills to understand the federal strategies and commitment of the leaders, especially
at the low-level position and experts to support and coordinate SMEs activities.
Additionally, the linkage of SMEs Strategy with other sectors is very poor even
though the interest of the government is very high due to the lack of action of
government officials and less effort by SMEs. The government cannot create
enabling environment to understand the federal strategy to support implementors in
the provision of access to finance, working place, and market for SME operators.
This can lead to low productivity and lack of completion in the market due to quality
input and insufficient finance.

Though the government designed a strategy to support small and medium
enterprises, most of the respondents agreed that no suitable work area gave room for
the economic integration of SMEs created by the regional governments even though
initiation is there. lacks commitment and serious attention to creating a conducive
working environment and applying the best experience taken from other successful
countries using the existing resources is low. Problems were starting with the
establishment of SMEs since no proper study was conducted before the SMEs are
established. What are the criteria to establish; who support them? does the
supporting unit have the capacity in knowledge, skill, and administrative system
better than the SMEs? and does SMEs willing to work as a team or independently?
The expert’s knowledge and skills are not better than /below/ the SME operators.
This situation makes the working environment discouraging and implementers
cannot strive with full potential in promoting SMEs. Additionally, the role of leaders
is limited with poor coordination of responsible sectors, improper functioning of the
council, and lack of shared vision towards the role of SMEs providing a favorable
working place and attractive market opportunity in creating the working area
compatible for business is weak.

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