Structural, Institutional, and Innovation Barriers to The Sustainable Development of Small and Medium-Sized Enterprises in Azerbaijan’s Agribusiness Sector: Policy Implications for Diversification and Food Security

This study provides a comprehensive analysis of the multidimensional challenges constraining the development of small and medium-sized ‎enterprises (SMEs) in Azerbaijan’s agribusiness sector. Through an integrated economic and institutional lens, it identifies structural, financial, and innovation-related barriers that hinder the sector’s ability to achieve sustainable growth. Emphasizing the strategic role of agribusiness in ensuring food security and fostering rural employment, the research examines both the macroeconomic environment and firm-level ‎dynamics influencing SME performance. The paper evaluates the production potential of agribusiness enterprises and investigates the eco-‎nomic trends shaping their development trajectory. Using comparative macroeconomic indicators and Excel-based regression analysis, the ‎study assesses the elasticity of key production factors and their relative influence on entrepreneurial output. The findings underscore the ‎necessity of aligning national support mechanisms with global innovation practices, enhancing financial accessibility, and improving the ‎institutional ecosystem for agribusiness entrepreneurship. Ultimately, the study formulates a set of policy-oriented recommendations aimed ‎at strengthening the competitiveness of Azerbaijan’s agrarian SMEs, reducing import dependency, and reinforcing the resilience of the na‎tional food system‎.