Business Growth Opportunities of SMEs in Emerging Economies: An empirical Survey of Azerbaijani Case

Small and medium-sized enterprises are gaining in importance in sustainable economic development, as they create a competitive business environment and create new jobs. However, SMEs often encounter number of challenges and barriers that hinder their success and sustainability. Obstacles are most evident in emerging economies undergoing economic transformation. Hence, this master thesis seeks to conduct an empirical enquiry of opportunities for Small Medium Enterprises (SMEs) to thrive in Azerbaijan. This study endeavors to answer following primary research questions: What are main internal and external factors affecting SME growth in emerging economies?The empirical experience of 69 SMEs from Azerbaijan has shown that SMEs are most affected by legal, political and economic barriers that affect their existence and independent business, as well as competition in the market. .Foreign business is affected by tariffs, trade regulations and rules and policies of target markets. Technological factors are not very significant. External barriers that are outside the influence of SMEs have the greatest influence. Research has shown that some barriers, such as lack of skills, strategic and innovative thinking, can also have a fundamental impact on SMEs. The study notes that government policies and support play a crucial role in stimulating SMEs. Therefore, recommendations and practical steps are presented that can potentially contribute to the development of small and medium-sized enterprises.