Fınancıal Incentıves For Young Innovatıve Enterprıses In A Developıng Country The Case Of Azerbaıjan

Abstract

In today's swiftly evolving economic environment, it cannot be overstated how crucial it is to offer financial incentives to youthful, innovative businesses. These incentives can not only cultivate an innovative culture, but also contribute to the creation of jobs, the enhancement of the economy's competitive advantage, and the promotion of sustainable growth. With the rise of digital transformation and disruptive technologies, it is more important than ever to support new innovative businesses through financial incentives. Through tax incentives, grants, and subsidies, governments can encourage the entrepreneurial spirit, risk-taking, and creativity that are essential for economic and social progress. In essence, these financial incentives serve as a catalyst for the transformation of creative ideas into viable businesses, fostering a robust startup ecosystem and bolstering economic diversity and resilience. In this study, innovative incentives for young enterprises were investigated on the example of Azerbaijan. In the first chapter, the theoretical and methodological foundations of incentives were studied. In the second chapter, innovations in developing and developed countries were compared. In the third chapter, the current situation, and future prospects of innovation in Azerbaijan are studied. As a result of the research, it was determined that spending money on education and capacity building is crucial to developing a knowledgeable and flexible workforce that can spur innovation among SMEs. Azerbaijan can provide its people the information and abilities required to thrive in the innovation-driven economy by boosting STEM education, entrepreneurial training, and lifelong learning opportunities.