Great Growth of Small Companies

At the beginning of Kazakhstan’s independence, the number of small and medium enterprises was under hundred and for today, there more than 100 000 small companies. The East Kazakhstan Region and Astana are leading this growth.

Small and medium businesses in Kazakhstan perform several important missions at once. First, they keep unemployment rate at a level relatively acceptable to the society. And second, large corporations, like ships fouled with shells, are encrusted with whole bunches of small firms supplying countless component parts, and dealer firms that provide work of super branched marketing systems.

Therefore, the Giants have the opportunity to focus on output growth and continuous improvement of finished products, which is essential for survival in the age of globalization.

Kazakhstan is trying to apply the experience of Asian countries (Singapore, the Republic of Korea), where the proportion of SMEs is extremely high, in relation to service the needs of large oil companies. This concerns especially small local firms, providing the construction services and materials, consumer services, transporting the passengers and goods, rental housing for staff. The agreements, including ones on the development of fields, concluded with the foreign companies, practically always stipulate involving the local firms into any work and purchasing their certain materials and products as an obligatory condition.

It shall be mentioned that the first steps in promoting small business in Kazakhstan were made back in 1997, when the President N. Nazarbayev has signed the decrees “On measures to enhance government support and development of small business” and “On priorities and regional programmes for support and development of small business in the Republic of Kazakhstan”. These regulations set the main directions of the State policy in this area and the practical arrangements for its implementation.

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