Determining factors influencing entrepreneurship activity in developing countries.

This bachelor thesis strives to find factors, which contribute to the development of entrepreneurial activity in developing countries. Using the example of Azerbaijan, this research will try to figure out how to improve the situation with business activities in the country. In order to answer the first question, the literature review is conducted. The answer to the second question is determined in case study, by statistical analysis of factors affecting entrepreneurship in Azerbaijan. Next, the SWOT analysis is done on purpose of understanding the current situation with entrepreneurship in Azerbaijan. Further, the confrontational matrix is constructed to find out which conditions mentioned in SWOT analysis should be core targets in programs that strive to improve entrepreneurship in Azerbaijan. Based on the matrix, the list of strategic options is proposed to program makers. From analysis of scholar literature and reports it was figured out that individual level factors (demographics and education), environmental factors (availability of raw materials, communication facilities and access to finance), and organization level factors (diversification of industries and availability of partnership links) affect entrepreneurial activity in developing countries. During the case study analysis, it was found out that to improve the entrepreneurship development in Azerbaijan, policy makers should focus on exercising factors, which have favorable conditions for supporting opportunities and reducing risks, and strive to alter the weak sides of factors in programs on entrepreneurship development. According to analyzed situation in the country, state authorities should pay special attention in policies to favorable conditions with demographical situation, infrastructure, and availability of state's fund for entrepreneurship development. Furthermore, in order to improve the situation with entrepreneurial activity in Azerbaijan, in policy making, the state should consider and try to eliminate the existing gender biases in entrepreneurial activities, develop partnership links with business, manage cooperation between entrepreneurs, and provide the loans for businesses in a more efficient way