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DOI: http://dx.doi.org/10.20534/EJEMS-17-2-49-52
Dzhulaeva Almazhan Mudarisovna, Ph. D. in Economics E-mail: [email protected] Sokira Tatyana Sergeevna, Ph. D. in Economics, E-mail: [email protected] Akhmetkaliyeva Sandygul Kusmanovna, Ph. D. in Technics, E-mail: [email protected] Kazakh national university after al-Farabi, Almaty, Kazakhstan
Improvement of socio-entrepreneurial corporations as an effective instrument of innovative development in Kazakhstan regions
Abstract: This article examines the cluster development of regions in Kazakhstan, by improving the activities of the newly created business structures — social and entrepreneurial corporations (SPK). The mission of the SEC is defined, which is to promote the socio-economic development of the region on the principles of partnership between the state and business.
Keywords: social-entrepreneurial corporation, cluster, partnership, innovative development, state, business.
The urgent task of the modern economy of Kazakh- essary condition for the solution of this problem is a stan is its transition to innovative development. A nec- regional approach, when the national economy is seen
as the union of interacting, spatially distributed regional economies. "The regional economy is the spatial interaction of economic clusters, each with its own internal spatial structure and the internal exchange of food, and space-distributed investment cooperation" [1].
Development of the region to a certain extent depends on the efficiency of the clusters. The President of the Republic of Kazakhstan, Nursultan Nazarbayev, stated the need to exploit the potential of cluster development in the formation of an innovative economy of the country and in addition to that said: "The main growth drivers are not industrial organizations, to which we are accustomed to over the years, but the centers of innovation and knowledge, universities, technology and engineering organizations. This creates a triple helix relationship between businesses, universities and government. It is necessary to form a triple helix in Kazakhstan. The traditional administrative system badly copes with this task. Therefore, a new organizational form of cluster development is needed" [2].
This new organizational form of cluster development in Kazakhstan should be a state-private partnership. Only this form of organization management technologies will create conditions for active participation of Kazakhstan's business in these processes. It will enable a full potential of both the state and business in order to achieve the objectives of industrial-innovative development strategy. How can the state-private partnership foster the cluster development in regions?
One of the ways is to create new business structures — Socio-Entrepreneurial Corporations (SEC), which are designed to ensure the development of the regions and increase interaction between the state and private businesses, and the profits will be directed to the solution of social problems in the region. As expected, they need to contribute to the country's regions with highly efficient management of state assets, a favorable environment for investment and enable Kazakhstan to become one of the fifty most competitive countries.
The idea of creating the socio-entrepreneurial corporations was first announced by the President of the Republic of Kazakhstan on March 1, 2006 in the address to the Nation "The Strategy of Kazakhstan to enter 50 most competitive countries of the world". According to the Message, and the Territorial Development Strategy of the Republic of Kazakhstan up to 2015, Kazakhstan has established seven SEC in 2007. With the adoption of the Law of the Republic of Kazakhstan "On the State Property" SEC data were reorganized and SEC was created in every region of Kazakhstan. Thus, in accordance
with the Government of the Republic of Kazakhstan on April 6, 2011 № 376 "On approval of the list of national management of holdings, national holdings, and national companies" there are 16 SECs in the Republic of Kazakhstan. The development strategies for all 16 SECs for 2014-2023 were approved by the relevant resolutions in August 2014.
SEC is a regional development institution, which aims to promote social and economic development of the region on the principles of partnership between the government and businesses. The activities of SEC aim to create favorable conditions for business development and build new and modernized facilities in the priority sectors of the regional economy. Ensuring the involvement of state-owned assets in the business turnover, on the one hand, and the involvement of non-budgetary investments and development on the basis of their competitive industries on the other, SEC plays an important role in the country. SEC should promote the development of business and create conditions for growth, not competing with them, without forcing it out of the market, and inviting the partnership. SEC shall enter into partnerships with other stakeholders promote the business financial and non-financial development of institutions, companies with state participation and second-tier banks.
Socio-entrepreneurial corporations must use the capacity of the state and raise the regional economy to a new level. Creating SEC allows the maximum use of the competitive advantages of each region. Regions combine in the structure of SEC and target at any specific industry or set of industries, which in its turn creates conditions for the development of clusters. For example, under the SEC "Caspian" in Atyrau and Manistee regions the oil and gas engineering, petrochemical industry, production of building materials industries can successfully develop.
There are prerequisites for the establishment of logistic centers and tourist industry. In other words, SEC will contribute to the formation and development of oil and gas clusters in the region. SEC in the future is a regional development institution that can effectively manage assets, stimulate economic activity in the growing points of the region, including the attraction of investments and formation of stable competitive industries. The press service of the Ministry of Economic Development, commenting on a draft concept of SEC, said, "The main purpose of SEC as an investment company is to increase the value of assets under management". More specifically, the SEC seeks to: create new and modern-
ized competitive enterprises in the priority sectors of the regional economy (growing points), ensure the involvement of state-owned assets in the business turnover, improve and develop distressed assets on the basis of their competitive industries and introduce advanced production technology and management standards in order to attract extra-budgetary investments.
SEC also promotes the growth of the economic activity of business, innovation and technology, provides opportunities to upgrade industrial parks, special economic zones, business incubators, investor service centers, etc., including the implementation of the operator in order to facilitate the clustering of medium and small businesses around large businesses. SEC creates possibilities for expansion of cooperation with the state institution to implement business projects and develop communications and to exchange skills between portfolio companies and facilitate branding of products for more active promotion ofproducts in the domestic and foreign markets [3]. Another important principle of SEC is a social responsibility that lies in the direction of the net profits to the local budget in the form of a dividend for the subsequent implementation of social projects in the region. However, the main purpose of SEC as an investment company is to increase the value of assets under management.
Practice indicates that SEC faces with several issues:
- a mixture of commercial and non-commercial objectives;
- insufficient capitalization of SEC;
- insufficient interaction of SEC with akimats (local municipalities) and development institutions;
- low level of corporate governance;
- the lack of clear criteria for evaluating the effectiveness of the company and effective system of motivation;
- SEC-loss ratio of the majority;
- suboptimal, and a wide range of industry projects;
- the presence of socially-oriented enterprises given local authorities (hereinafter LA) as a result of "spraying" the efforts of SEC;
- SEC-thin capitalization (the need to transfer commercially oriented enterprises of communal property; Akimats allocation of land provided by the infrastructure networks for the implementation of investment projects) [4].
This is due to the lack of a systematic approach to SEC activities in the context of creating an innovative environment in the national economy from a regional perspective. Also, this is due to the absence of the concept of public-private partnership as a whole. After all, SEC is a subject initiated by the State because of the public-private
partnership. The concept of socio-entrepreneurial corporation is in its mission. SEC mission is defined as the promotion of socio-economic development of the region on the principles ofpartnership between government and business. SEC feature is that in the face of one subject in the form of SEC should be brought together social interests of the subject area and the business interests of the subject corporation: the solution of social problems and making a profit. SEC and how their activities conform to the task? To answer this question, it is first necessary to analyze and identify the subject analysis.
The SEC's interest as a subject links together the interests of the region and businesses that can be formed only by interlink of the subj ect's characteristics of entrepreneurial and social structures. As one can see, SEC should have a complex structure of interest: it is meant to express the social (public) interests in terms of the region, and business (private) interests of a particular corporation. But in reality the SEC does not have a full range of theoretical basis for the business interests and social interests guided only from the point of view of the region as a whole. This, above all, is due to low efficiency and economic losses of SEC. The ownership of socio-entrepreneurial corporations belongs to the state, since State is 100% owner of it and appoints the heads of SEC. The legal form of socio-entrepreneurial corporation as a national joint stock company could be explained by its governmental "nature". Funding for the socio-entrepreneurial corporations goes through the state budget. Local municipalities (akimats) perform SEC management.
In other words, according to the exclusive state ownership theory, it is virtually impossible to implement social entrepreneurship in allocated regions. According to its legal form SEC is created as a non-profit corporation such as (national joint-stock companies), but is designed to solve the problem of profit and investment in socio-economic development areas of the region. Funding for the socio-entrepreneurial corporation of the state budget emphasizes its state origins, and the lack of regional characteristics, although they are made for each region and are focused on regional development.
In order for SEC to function as a form of state-private partnership (SPP) in the regions, a working and transparent mechanism for effective interaction between the public and private sectors is needed. Moreover, it is necessary to justify two positions methodologically:
- to determine the subj ectivity of SEC as a way of implementing SPP;
- to identify the region as a territorial response for SEC;
Development of methods of analysis and evaluation of interests of public-private partnership under the
SEC allows one to raise its effectiveness by creating new mechanisms for its implementation and identifying hidden opportunities to improve the efficiency of partnership between government and business. Accordingly, a special approach to organizing and managing the activities of SEC is needed. To do this, first, it is necessary to form a methodological approach to improve the performance of public-private partnership in Kazakhstan:
- subjective-objective analysis of public-private partnerships, development of assessment instruments of interests of public-private partnership;
- development of methods for determining interests ofpublic-private partnership in Kazakhstan in accordance with their level of management (national, regional, local);
- development of methods for determining the balance of interests of public-private partnership in Kazakhstan, criteria and indicators of optimal balance between the interests of the parties.
Implementation of state and business interests within the framework of SEC established in various regions of the country must be realized. This can create conditions for growth of innovation, which in its turn can greatly increase the level of implementation of innovative potential of the country in the long term. Public-private partnership in the SEC can only be effective if the socio-entrepreneurial corporation in the structure and management can link the interests of society as a whole and the interests of the corporation in particular. Such approach can develop a new model of SEC on the basis of public-private partnership that will allow developing a full potential of both the state and business. This way, the country's objectives of industrial-innovative development can be achieved if Socio-Entrepreneurial Corporations are in place and structured in a way so to meet the needs of both economic parties.
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5. The idea of creating a SEC was a failure//https://kapital.kz/economic/19545/ideya-sozdaniya-spk-okazalas-provalnoj.html
6. Ak Zhol proposes to eliminate SPK or transfer it to a competitive environment.//https://kapital.kz/econom-ic/45702/ak-zhol-predlagaet-likvidirovat-spk-ili-peredat-v-konkurentnuyu-sredu.html
