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

According to Timur Suleimenov, the development of this economic sector, which is the main source of employment, investment attraction, and is the foundation of a competitive economy, is one of the main priorities of the work of the Ministry of National Economy.

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

- Streamlining of state regulation and improvement of business climate;

- Improvement of support measures and the availability of funding;

- Elimination of industry barriers.

With regards to “streamlining government regulation and improving the business climate”, a corresponding bill has been drafted, which contains about 1000 amendments, providing for changes in 100 laws and 13 codes.

The bill provides for the reformation of state control and supervision, the reduction of onerous reporting by entrepreneurs, reduction of frontal business costs, elimination 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 step is to increase the availability of business financing. Here, the key support tools are the Single Business Support and Development Program “Business Road Map 2020”, the Productive Employment and Mass Entrepreneurship Development State Program, as well as credit lines of international financial organizations,” – Timur Suleimenov said.

Within the framework of the Single Business Support and Development Program “Business Road Map 2020”, over 192 thousand entrepreneurs and people with entrepreneurial initiative were covered by support measures as of the end of 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 new and existing entrepreneurs were covered by training programs and services.

At the end of 2017, the program participants 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 Productive Employment and Mass Entrepreneurship Development Program targeting the unemployed and self-employed population have become an essential addition to the already working tools of the Business Roadmap 2020 Program.

With regards to the Productive Employment and Mass Entrepreneurship Development Program, in 2017, with a plan of 10 billion tenge, second-tier banks received loan applications amounting to 11.8 billion tenge, of which, as of January 5, 2018, projects worth 10.1 billion tenge were financed, approved or are being considered.

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

At the same time, the Ministry, together with the Ministries of Investments and Development, Agriculture, and NCE Atameken is working to create a One-stop-shop for state support measures within the framework of the Digital Kazakhstan program.

A list of 52 support tools was made in order implement the proposed solutions. According to the Ministry of National Economy, 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 work in the past years, the Ministry together with concerned state bodies examined 552 problematic business issues, 497 of them are resolved.

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

“We note that work on the development of small and medium-sized business is a priority of the Ministry and is under constant monitoring,” – Minister Timur Suleimenov summed up.

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


Published: 06 February 2018


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