Kazakh government introduces new state program to support SMEs

Kazakh government introduces new state program to support SMEs

Kazakhstan has developed a new program of state support for small and medium-sized businesses. It involves a shift from subsidizing to using guarantee instruments and other non-financial measures to support entrepreneurs. The plan is to merge two existing programs, such as the Business Roadmap and Economy of Simple Things, into a project under the Kazakh Ministry of National Economy. The initiative is expected to help develop competitive, import-substituting and export-oriented industries, as noted by the head of the relevant ministry Alibek Kuantyrov during a government meeting. The program consists of six areas, with a primary focus on subsidizing new enterprises in the manufacturing sector. According to the government, over 4.3 million people are now engaged in entrepreneurial activities in Kazakhstan. The share of SMEs in the country’s economy is currently at 36.5 percent, which is planned to increase to 40 percent by 2030.

“To this end, a new regulatory policy is already being implemented in entrepreneurial activities. The ‘clean slate regulation’ reform enhances the effectiveness of incentive measures to activate business. To date, 9,000 redundant requirements have already been eliminated. Nearly 1,000 more excessive requirements are being excluded under a bill on doing business, which is now being considered in the Senate. New forms of government control have been introduced. Starting this year, businesses will experience a reduction in administrative burden,” said Alikhan Smailov, Kazakh Prime Minister.