Are concessional state loans available to every SME? - Challenges and opportunities in the provision of concessional state loans for micro and small businesses engaged in tourism in the regions of Azerbaijan

Sammanfattning: Tourism is considered one of the main driving forces of economic growth. At the same time, micro and small businesses play a vital role in the development of the tourism sector as a supply side. Also, the development of entrepreneurial activity directly depends on internal and external financial resources. So, this qualitative case study investigates the access to external finance, concessional loans, of micro and small businesses operating in tourism sector in the regions of Azerbaijan. Firstly, concessional state loan mechanisms available for entrepreneurs in the country, the rules and conditions of their granting, as well as how accessible they are to entrepreneurs operating in the tourism sector are examined. Then, the challenges faced by entrepreneurs during their application to authorized credit organizations regarding the acquisition of these loans, as well as the supply and demand factors affecting them are analysed. It has been determined that these challenges are primarily related to entrepreneurs' lack of relevant knowledge, inability to pay the demand for collateral or confirm property rights related to collateral, procrastination by authorized credit organizations and etc. In the end, relevant proposals are presented on potential solutions for eliminating the obstacles that limit entrepreneurs' access to concessional state loans.