Global Experience in State Support for Self-Employment and Recommendations for Azerbaijan

Abstract

This policy paper looks at how other countries support self-employment. It gives recommendations to improve Azerbaijan's self-employment framework. The research looks at Germany, South Korea, and Brazil. It identifies various policy tools. These include asset-based support, digital entrepreneurship programs, and vocational-social integration models. The analysis uses a qualitative method. It combines comparative policy analysis, literature reviews, national statistics, and expert interviews. Azerbaijan has made great strides with its self-employment program run by the Ministry of Labour and Social Protection. However, the current model misses key elements. It lacks post-startup support, digital integration, and effective formalization mechanisms. Three policy options are evaluated—expanding the current program, introducing youth-focused digital entrepreneurship grants, and integrating self-employment into vocational and welfare systems—using five criteria: effectiveness, efficiency, feasibility, equity, and flexibility. The study suggests a hybrid approach that mixes all three options. This approach fits Azerbaijan’s unique institutional and economic situation. A phased implementation roadmap and multi-stakeholder strategy are proposed to enhance impact and sustainability. This paper adds to the discussion on building an inclusive labor market. It provides practical insights that match Azerbaijan’s Vision 2030 goals