The Prime Minister of Kazakhstan

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In 2017, as part of state support for SMEs development, over 17 thousand jobs created — T. Suleimenov

06 February 2018, 12:09

Minister of National Economy Timur Suleimenov reported on the measures being taken in the country to develop small and medium business today at a meeting of the Government chaired by the Prime Minister Bakytzhan Sagintayev.

According to Timur Suleimenov, the development of this sector of the economy, which is the main source of employment, attracting investments, is one of the main priorities of the work of the Ministry of National Economy.

Work in this direction is carried out on three system blocks:

  • enhancement of state regulation and improvement of business climate;
  • increasing access to finance and improving support measures;
  • removal of industry barriers.

In the direction enhancement of state regulation and improvement of business climate, a corresponding draft law has been drafted, which contains about 1000 amendments, providing for changes in 100 laws and 13 codes.

The draft law provides for the reform of state control and supervision, the reduction of onerous reporting by entrepreneurs, the reduction of frontal business costs, the exclusion of exclusive rights of market entities that impede the development of competition and the improvement of Kazakhstan's position on the World Bank's Doing Business rating.

"The next important direction is to increase the availability of business financing. Here, the key support tools are Business Road Map 2020 — the Single Business Support and Business Development Program, the Program for the Development of Productive Employment and Mass Entrepreneurship, as well as credit lines of international financial organizations," Timur Suleimenov said.

Within the framework of the Business Road Map 2020 Single Program for Business Support and Business Development, over 192 thousand entrepreneurs and people with entrepreneurial initiative were covered by support measures for 2017, which is 10% more than in 2016.

At the end of 2017, the volume of the loan portfolio supported by subsidizing the interest rate and guaranteeing loans amounted to 286.6 billion tenge. In all, 3351 projects were supported, which is 10% more than in 2016. 276 state grants were awarded for the amount of 490 million tenge, the missing infrastructure for 25 projects of entrepreneurs for the amount of 12.1 billion tenge was provided, 74,8 thousand beginning and operating entrepreneurs were covered by training programs and services.

At the end of 2017, the program produced products worth 3.5 trillion tenge, created over 17.3 thousand jobs, paid taxes for the amount of 217 billion tenge.

At the same time, measures of support within the framework of the Program for the Development of Productive Employment and Mass Entrepreneurship aimed at the unemployed and self-employed population have become an essential addition to the already working tools of the Business Roadmap 2020.

According to the Program for the Development of Productive Employment and Mass Entrepreneurship, in 2017, with a plan of 10 billion tenge, second-tier banks placed loans worth 11.8 billion tenge, of which, as of January 5, 2018, projects worth 10.1 billion tenge were financed, approved and are under consideration.

It should be noted that, taking into account additional funds allocated by local executive bodies, the microcredit portfolio already amounted to 14.2 billion tenge, of which loans amounting to 12.9 billion tenge were placed in banks. 172 projects of business received bank guarantees for the amount of 967 million tenge. 15 thousand unemployed and self-employed population were trained, of which more than 3300 start-ups have been financed.

At the same time, the ministry, together with the Ministries for Investments and Development, Agriculture, Atameken NCE, under the Digital Kazakhstan program, is working to create a Single Window on state support measures.

To implement the proposed solutions, a list of 52 support tools has been identified. According to the MNE, full automation of state support measures will make them accessible, reduce corruption risks in this area, and increase the coverage of business entities.

The next important direction is the removal of industry barriers. In total, taking into account the work of the past years, the Ministry together with interested state bodies examined 552 problematic business issues, 497 of them have been resolved.

According to the Committee of Statistics, the number of operating businesses in the 2017 period was 1,145,994 units, or 3.6% more than in 2016. At the same time, production of SMEs has significantly increased. For 9 months of 2017, the output amounted to 14.4 trillion tenge, or 28.5% more than in 2016.

"We would like to note that the development of small and medium business is a priority of the Ministry and is based on constant monitoring," the Minister Timur Suleimenov summed up.

At the meeting, reports were also made by A. Arifkhanov, Chairman of the Board of the Baiterek NMH, A. Myrzakhmetov, Chairman of the Board of the Atameken NCE.