Entrepreneurial Incentives for Skilled Diaspora Return in Azerbaijan

Abstract

This study examines whether entrepreneurship-oriented incentives can support the return of skilled Azerbaijani diaspora members. It addresses a policy gap by comparing business start-up support with conventional employment-related incentives. The empirical analysis draws on a cross-sectional survey of 162 Azerbaijani citizens living abroad. Responses were measured on a five-point Likert scale and assessed using descriptive and comparative analysis. The findings show that 30.2% agreed that practical support for establishing a business in Azerbaijan would accelerate their return decision, while 25.9% were neutral and 43.9% disagreed. Entrepreneurial support attracted substantially less endorsement than competitive salaries aligned with qualifications (62.9%), transparent recruitment (58.0%), and faster recognition of foreign qualifications and professional experience (63.6%). These results indicate that business support should not be treated as a universal instrument for diaspora return. It is better understood as a targeted incentive for potential returnees who possess business experience, investment resources, or a credible entrepreneurial plan. The study concludes that Azerbaijan should combine general labour-market reforms with a selective diaspora entrepreneurship package comprising start-up finance, simplified administrative procedures, mentoring, investment guidance, and post-return advisory support. Such policy differentiation can strengthen the economic contribution of return migration by linking human-capital reintegration with new business formation, knowledge transfer, and employment creation.