Support mechanisms for small and medium enterprises in Kazakhstan
Rewritten Article:
Small and medium-sized businesses in Kazakhstan are set for a boost, as the government has announced a fresh package of measures to stimulate business activity. The new package, unveiled by President's press secretary Berik Uali, aims to support over 1.2 million businesses employing over 3.3 million people, according to Total.kz.
The impetus for these measures comes from President Kassym-Jomart Tokayev, who, in his recent address, highlighted the need for a focus on small and medium-sized businesses in 2023. He urged the government and the National Chamber of Entrepreneurs 'Atameken' to come up with a set of necessary measures within a month.
The package consists of 24 measures across four broad areas: reducing the burden on businesses, expanding access to financing, markets, and quality human resources. The goal is to set off a rapid recovery dynamic and foster an environment that encourages business activity in the face of the new economic reality.
The specifics of the package weren't detailed in the reports, but it's worth mentioning that Kazakhstan already has supportive programs in place for businesses, particularly small and medium enterprises (SMEs). Let's take a look at some existing initiatives:
Boosting Businesses with Existing Programs
- "Business Roadmap 2025" (BRM 2025): Targets support for enterprises in sectors beyond extraction and import-substitution, reaching rural areas and single-industry towns. It offers various forms of support, including interest rate subsidies, loan guarantees, grants, and training and consulting assistance to improve business capacity and competitiveness. Key partners in implementing these measures include central and local authorities, commercial banks, Damu Entrepreneurship Development Fund, and the Atameken National Chamber of Entrepreneurs.
- Financial Support for SMEs: Kazakhstan offers an array of programs to facilitate SMEs' access to capital. These include concessional lending, microfinance, subsidized interest rates, loan guarantees, and grants for start-ups and small enterprises.
- EBRD Initiatives: The European Bank for Reconstruction and Development (EBRD) supports Kazakhstan by offering green loans to small businesses across the country. Moreover, the EBRD aims to support women entrepreneurs through the Kazakhstan Microfinance Organization (KMF) with funding up to $25 million for businesses owned or led by women.
While the specifics of the new stimulus package aren't yet clear, ongoing endeavors to improve the business environment involve strategies for economic growth and financial sector stability, as demonstrated by the National Bank's monetary policies maintaining high interest rates to manage inflation. General economic stimuli and fiscal measures are noted to support robust economic growth, indirectly benefiting businesses by creating a favorable economic climate.
- To ensure a swift recovery and promote business activity, the fresh government package in Kazakhstan will focus on supporting over 1.2 million businesses and their 3.3 million employees, as announced by President's press secretary Berik Uali.
- The package, unveiled by President Kassym-Jomart Tokayev, aims to stimulate business growth in 2023, with a focus on small and medium-sized enterprises (SMEs), as he emphasized in his recent address.
- The stimulus package consists of 24 measures across four key areas: reducing business burdens, expanding financing, market access, and quality human resources, to foster an environment that encourages business activity.
- While the details of the new stimulus package are yet to be disclosed, existing initiatives such as "Business Roadmap 2025" (BRM 2025), financial support for SMEs, and EBRD programs already provide substantial assistance to businesses in Kazakhstan, particularly SMEs.
