AZE.US
Nearly 70% of Azerbaijan’s microbusinesses are concentrated in Baku, highlighting the widening economic gap between the capital and the country’s regions.
According to official data, Azerbaijan had 199,604 microbusiness entities as of July 1, 2026. They accounted for 92.7% of all commercial organizations operating in the country.
Of that total, 139,041 were based in Baku, meaning the capital alone hosted 69.7% of all microbusinesses. The rest of the country accounted for just over 30%.
Economist Natig Jafarli said the figures reveal a deeper structural imbalance in Azerbaijan’s economy and help explain internal migration, growing pressure on Baku’s infrastructure and even the capital’s chronic traffic congestion.
Jafarli questioned how much these businesses actually contribute to gross domestic product and state budget revenues, despite representing almost 93% of all commercial entities.
“If microbusinesses account for nearly 93% of commercial organizations, what share of the budget and GDP do they generate?” he wrote on social media.
He also challenged the effectiveness of long-running regional development programs.
“Why are 70% of these entities located in Baku? Only 30% are left for the entire country. Where are the results of the regional development programs?” Jafarli said.
The concentration of businesses, employment opportunities and services in the capital has for years encouraged people to move from smaller cities and rural areas to Baku. That migration has increased demand for housing, transportation and public services while leaving many regions with limited private-sector activity.
The figures suggest that the large number of registered microbusinesses alone does not necessarily indicate a healthy or diversified economy. The more important questions are how productive these businesses are, how many jobs they create and whether economic opportunities are being distributed beyond the capital.
AZE.US