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THE ROLE OF SMALL BUSINESS in the development of Kazakhstan's economy
L.A.Bimendiyeva Candidate of economic Sciences, associate Professor Kazakh National University named after Al-Farabi Leila.Bimendieva@kaznu.kz
В статье рассматривается развитие и поддержка малого предпринимательства как фактор устойчивого развития экономики. Без развитого малого и среднего предпринимательства сложно говорить о стабильности макроэкономической ситуации государств. Вследствие этого, еще на заре независимости малый и средний бизнес был определен в Казахстане как важнейший сектор экономики. Приведенные данные по производству продукции малого и среднего предпринимательства Казахстана, показывает, что активность показывает малое предпринимательство. Также в статье рассматривается программа «Дорожная карта бизнеса-2020», которой является важным инструментом реализации политики развития предпринимательства в стране.
Ключевые слова: малое предпринимательство, производство продукции, предпринимательский потенциал, государственная поддержка МСБ, фонд по поддержке предпринимателей.
The article deals with the development and support of small business as a factor of sustainable economic development. Without developed, small and medium-sized businesses are difficult to talk about the stability of the macroeconomic situation of States. As a result, at the dawn of independence, small and medium-sized businesses were identified in Kazakhstan as the most important sector of the economy. These data on the production of small and medium-sized businesses in Kazakhstan shows that the activity shows small business. The article also discusses the program "business Roadmap 2020", which is an important tool for the implementation of the policy of entrepreneurship development in the country. And it is very important that entrepreneurs are aware of the support tools provided by the state, as today the development of business in the country and its approval in the economy plays a huge role for the country and for the entrepreneur.
Keywords: small business, production, entrepreneurial potential, state support for SMEs, fund for entrepreneurs support
All forms of entrepreneurship are one of the most important and necessary factors of the market economy during their development. The entrepreneur produces goods necessary for the society to increase its income, as well as provides services. Accordingly, in the course of business, other enterprises also allow them to develop their own products and services. In addition, the entrepreneur will pay taxes and contribute to the state budget on the results of its activities. The main thing is that the development of entrepreneurship in the country has a positive impact on the growth of social welfare.
Initially, in the XVIII century, the concept of "entrepreneur", presented by the English economist Richard Cantillon, was presented to the prominent representatives of the classical school of A. Smith, J. B. Say, W. Sombart, I. Schumpeter, economists P.Drucker, J.M. Keynes, T. Peters, P. Samuel, and F. Hayek contributed. Scientists conclude that an entrepreneur is a person who is committed to innovation, able to implement a new idea.
Any entrepreneur will be able to create new jobs and improve living conditions because of their activities. Accordingly, employed people will be able to increase their ability to pay, improve their living standards and solve various socio-cultural issues. The development of entrepreneurship in each region of the country is a way for local residents to earn a living and earn income at the local level, which in turn reduces their movement from one place to another in search of a source of income.
It is known that as the share of small and medium-sized businesses in the economy increases, the pace of development of Kazakhstan will also increase. There are currently 1 568 458 small enterprises, and in July of 2018, the number of active small businesses increased by 55.5% compared with January 2014. The share of individual entrepreneurs in the total number of SMEs increased by 63.9% and in four years increased by 63.6%, farms increased by 12.9%, respectively, by 21.6%, legal entities in small business - by 23, 2% and increased accordingly by 20.2%. [9]
Table 1. Number of small enterprises registered until 1 July 2018, units
All including
legal entities of small business individual entrepreneur A Farm or farm entrepreneur
The Republic of Kazakhstan 1 568 458 363 256 1 002 890 202 312
Akmola 56 993 10 141 42 003 4 849
Aktobe 64 785 14 591 44 624 5 570
Almaty 143 106 16 545 78 569 47 992
Atyrau 56 744 10 202 44 084 2 458
West Kazakhstan 49 438 8 193 35 044 6 201
Zhambul 78 894 8 948 52 612 17 334
Karaganda 102 842 24 930 69 165 8 747
Kostanay 65 626 10 956 48 998 5 672
Kyzylorda 51 691 7 516 38 007 6 168
Mangystau 58 205 12 398 43 861 1 946
Turkistan 139 357 10 215 61 359 67 783
Pavlodar 52 861 12 376 36 973 3 512
North Kazakhstan 36 465 7 465 25 191 3 809
East Kazakhstan 111 994 16 980 78 673 16 341
Astana city 154 388 60 838 93 370 180
Almaty city 268 405 111 135 156 507 763
Shymkent city 76 664 19 827 53 850 2 987
Source:According to the Kazakhstan statistical Agency.
As can be seen from the table, most small enterprises are active in Almaty and Astana, as well as in Almaty, Turkestan and East Kazakhstan region. We see that in the regions of Northern Kazakhstan and Western Kazakhstan they are relatively small. The efficiency of business development is determined by the dynamics of growth in the number of entrepreneurs involved. [9]
It is possible to solve the problem of creating socio-economic conditions for the population of the Republic through the development of entrepreneurship in the service sector. Therefore, for the effective functioning of entrepreneurship, it is important to create conditions for their development through state support and to supplement the regulatory framework governing its normal functioning. In addition, the government seeks to promote innovation in science through the development of science in the country, increasing its funding and launching production within the framework of state support for small and medium-sized businesses.
Figure 1. Output Production of all small and medium-sized businesses, mln.tg
Source:According to the Kazakhstan statistical Agency
In the above diagram, the main indicator of small and medium-sized businesses is the increase in production in 2017 compared to 2013 by 25.3%. The share of SMEs in the total output of SMEs is 71%. In addition, for five years, individual entrepreneurs and farms showed a slight increase of 1.6%. Seeing any indicators can know the growth of the small and medium-sized businesses.
As of 1 July 2018, the number of active small enterprises by types of economic activity was 1,194,379 and the number of unemployed - 374 079. 35.5 percent of small and medium-sized enterprises were wholesalers and retailers; automobiles and motorcycles, of which 83.4 percent were self-employed. [10]
As of August 1, 2018, the number of operating SMEs increased by 4.4% compared to the same period last year. It is well known that the problem of unemployment can be solved through the development of entrepreneurship in the country. The private sector in Kazakhstan is developing dynamically; the share of individual entrepreneurs in the total number of SMEs is 65%, legal entities in small business - 18.5%, farms - 16.3%, and legal entities in small business - 0.2%.
Currently, the main purpose of the development of measures to support small business is to provide the necessary conditions for the formation of the economic sector, which will ensure the real competitiveness of the economy of Kazakhstan, the development of small business infrastructure. In order to strengthen state support for small business and enhance its development, a decree Of the President of the Republic of Kazakhstan was issued in March 1997 as the basis for the establishment of a small business development Fund. The main activities of the Fund are:
1) Participation in the development and implementation of state programs to support small businesses;
2) Providing loans to small enterprises through second-tier banks and individual targeted lending to small businesses, including entrepreneurship, without creating a legal entity, taking into account the main directions of small business development, market conditions of goods and services, and the socio-economic situation in specific regions;
3) Assistance in creating new jobs in small business and self-employment;
4) Issuance of guarantees to small enterprises to obtain loans from second-tier banks;
5) Promoting the development of business centers and incubators of small business, consulting, training, leasing and other market structures in the field of small business;
6) Participation in lending programs in accordance with the procedure established by the Government of the Republic of Kazakhstan. [3]
Due to this Fund, entrepreneurs engaged in small enterprises were given the opportunity to receive loans through their business plans.
From the status of JSC "small business development Fund" changed the status of JSC "entrepreneurship development Fund "Damu", in connection with which also increased the appropriate authority to support small and medium-sized businesses. The Fund became the operator of the financial institution's asset management by the state: financial support for SMEs has been developed and implemented, and new areas of information, analytical and Advisory support for SMEs have been developed and implemented. Today, 100% of the Fund's shares belong to the national development Institute, which owns JSC "national managing holding" Baiterek ".
The issues facing the business sector, which is the root of the economy, must be addressed in a particularly timely and effective manner. The experience of small and medium-sized businesses in the Republic of Kazakhstan shows that none of the small businesses can effectively use their funds. Entrepreneurs will be able to effectively use their finances in business if they compete and can achieve a business plan. It is necessary that training centers for entrepreneurs work. The issuance of corporate securities and the establishment of joint ventures with other large companies will lead to the development of small business management and will become medium-sized businesses in the form of joint-stock solutions. Currently, the financing of entrepreneurs is also carried out through the entrepreneurship development Fund "Damu". Currently, the "Damu" Fund has a strategic goal to ensure that national funding is available to all credit institutions of small and medium-sized businesses. In accordance with the mission, Of the Fund "Damu" entrepreneur was able to overcome many obstacles, contributing to the qualitative development of small and medium-sized businesses, as well as microfinance organizations in Kazakhstan as a financial integrator and operator of consulting services.
Currently, the Fund is the only state development institution implementing the government's policy to support and develop small businesses. At its ten-year stage of development, the Fund developed a new concept for the development of small and medium-sized enterprises, starting in 2008. The new concept and policy of SME support are to promote the competitiveness of small and medium-sized businesses in Kazakhstan, its qualitative breakthrough, productivity growth and competitiveness in this area. [3]
A significant contribution is made by the programs that are implemented and implemented for entrepreneurship in our country. "Small entrepreneurship in the Republic of Kazakhstan for 2004-2006" On the state program of development and support of the President of the Republic of Kazakhstan " resolution of the government of the Republic of Kazakhstan dated 29 December 2007 № 1268 and the resolution of the President of the Republic of Kazakhstan Strategy of industrial-innovative development of the Republic of Kazakhstan "," On private enterprise ", the adoption of
the Law of the Republic of Kazakhstan dated January 31, 2007 №. 124-III., The concept of sustainable development at the stage of adoption of the Decree of the President of the Republic of Kazakhstan "on state support of entrepreneurship and policy in this area, was a new zeal, inspiration items.
One of the main goals of the strategy is the promotion of the private sector and promoting the competitive advantages, promoting scientific and high-tech export-oriented industries, diversification of export potential of the country for goods and services, the introduction of international standards of quality, the creation of a corporate climate that combines the level of the world economy with the integration of technical and innovative processes create the structure of state institutions. [5]
Analysis of the business environment in the country shows that entrepreneurship should improve the level of knowledge and introduce modern business models. As part of the Fund "Damu" entrepreneurship course" Business consultant" conducts business training for entrepreneurs. Thus, any entrepreneur has the opportunity to gain knowledge about the business that he needs.
The goal of the program "business roadmap 2020" is to ensure sustainable and balanced growth of regional entrepreneurship in non - primary sectors of the economy, as well as to maintain and create new jobs, support new business initiatives, improve the business sector, support export-oriented industries. [8]
The program "Business roadmap 2020" was supplemented by a new direction" Strengthening of business potential". Entrepreneurs of small and medium-sized businesses (start-up projects), who will start their business in this area, will:
Operational business service support;
Training of senior management of small and medium-sized businesses;
Modernization and expansion of production by establishing business contacts with foreign partners;
State support will be provided for the development and retraining of personnel in the labor market.
Currently, Kazakhstan demonstrates high rates of economic growth. This is a great success, given the fact that since the fall in the 1930s, when it was a major crisis in the United States, there has been a decline in the country. And the work that entrepreneurs have to do in this regard is diverse.
Credit and financial institution of small business in the Republic of Kazakhstan are second-tier banks. Due to changes in the mode of economic development of the country, the scale and volume of the loan have undergone some changes.
In order to become an entrepreneur, you do not need to be an owner of capital, its main capital, imagination and a sense of consumer psychology. It is these qualities that benefit the entrepreneur. The initial capital of enterprises cannot ensure the company's entry into the market.
Therefore, it needs additional funds that will contribute to the further development of the enterprise. That is, it can be implemented through loans provided by second-tier banks to business entities.
If the target credit resources on the policy of financial and credit support for small and medium-sized businesses prevail in the total investment in the economy for the development of small businesses, then, for example, placement in profitable areas, through the sectoral division, it would be possible to provide significant assistance to small and medium-sized businesses.
In General, during the years of independence, Kazakhstan has completed the formation of the business environment. The structure of production is adapted to the world conditions of economic management and division of labor. The diversified structure of industrial production, high scientific and technical potential is formed. There are developed fuel and energy, mining and metallurgical, transport and communication complexes. Also, have so much available unused capacity reserves.
Kazakhstan has achieved a high concentration of production and management in certain industries. This is a good basis for creating competitive national corporations in the global economy.
In addition, the report says that "Attracting foreign investment should be fully used in the country for the transfer of knowledge and new technologies. We need to create design and engineering centers together with foreign companies. We would like to invite leading multinational companies operating in large oil and gas, mining and metallurgical enterprises to create industries to meet their needs and services here. I know that some large companies are ready for this. The government should work on this issue and, if necessary, take all necessary steps. There is no need to transport equipment when it comes to the production of our own equipment in our country, «the President said, pointing out the direction of the eternal country with clear plans and specific instructions. The President's Address says what industry needs to be developed and what we can do. There is a plan, direction, state support, and now they have to strive to improve their professional skills and help budding entrepreneurs. We strive to help your country, your country and contribute to the implementation of the strategy "Kazakhstan 2050". Successful implementation and development of small and medium-sized businesses help entrepreneurs, even the community, to solve social problems. At the same time, the President can overcome the industrial and innovative development of the country through the development of new industries. It is clear that the President's conclusion that the development of small and medium-sized businesses in Kazakhstan will lead to industrial and social modernization.
References
1. General provisions President of Kazakhstan Nursultan Nazarbayev: "Kazakhstan's way-2050: common goal, common interests, and common future". January 7, 2014
2. Hisrich R., Peters M. 1st Issue "entrepreneurship or how to start their business and achieve the success." M., 2011 Chapter 1.Generalities
3. Decree of the President of the Republic of Kazakhstan on the establishment of JSC "small business development Fund" - 03.1997 (since 2007 entrepreneurship development Fund "Damu")
4. Small entrepreneurship in the Republic of Kazakhstan for 2004-2006 state programs for the development and support of small entrepreneurship in the Republic of Kazakhstan for 2003-2005 of Kazakhstan dated 29 December 2008 No. 1268. - Astana, 2010.
5. About modification and additions in some legislative acts of the Republic of Kazakhstan concerning the taxation strategy of industrial and innovative development for 2003-2005"-Astana, 2003.
6. On amendments and additions to some legislative acts of the Republic of Kazakhstan on state registration of legal entities and registration of branches and representative offices Law of the Republic of Kazakhstan dated January 31, 2006 No. 124-III.
7. About modification and additions in some legislative acts of the Republic of Kazakhstan concerning the taxation about the concept of transition of the Republic of Kazakhstan to sustainable development for the period till 2020". - Astana, 2007.
8. Program "business road map 2020" resolution Of the Government of the Republic of Kazakhstan dated April 13, 2010 №301-Astana.
9. "2010-2024 state program on forced industrial-innovative development of the Republic of Kazakhstan for 2010 - 2014" - Astana, 2010.
10. http://www.stat.gov.kz/
