SME development state policy is concentrated on the utilisation of SME sphere potential and enhancing of its role in economic, social and political development of the Republic of Azerbaijan. The functions of SME development are reserved to the department of SME development within the Ministry of Economic Development of Azerbaijan.

The main tasks of the department are:

creation of favourable framework for establishment and further development of SME's

assistance for increasing the number of SME's, thus creating new work-places and extenuating the social tension in the country

National Confederation of the Entrepreneurs (Employers') Organizations of Azerbaijan Republic (AEC) was established in Baku on March 5, 1999. National Confederation of the Entrepreneurs (Employers') Organizations of Azerbaijan Republic (AEC) being a union of employers in Azerbaijan Republic is non-commercial, non-government, self-managing organization coordinating activities of the juridical and physical persons dealing with the entrepreneurial activity not-dependent on their property and organization-legal form (excluding state-financed organizations) on voluntary basis, protecting their legal and economic rights, having public-effective objectives and considering not to get profit as the basic principle of its activity.