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  • 16 thousand SMEs received funds thanks to Business Road Map 2020
6 November, 2019 18:02

16 thousand SMEs received funds thanks to Business Road Map 2020

There has been progress made over the years of the second five-year road map’s implementation. The measures adopted made possible for Kazakhstan to take the 25th spot in the World Bank's Doing Business rankings, up by 16 positions compared to 41st in 2015. SMEs’ share in the gross domestic product has reached 28.4%, Ruslan Dalenov, Kazakh national economy minister, told the government session on the results of the Business Road Map–2020 State Programme’s implementation and the measures proposed for the Business Road Map–2025, primeminister.kz reports

16 thousand SMEs received funds thanks to Business Road Map 2020  | Strategy2050.kz

“Since 2015, the number of active SMEs has increased by 400 thousand, and accounts 1.3 million, while that of people working in SMEs has grown by 300 thousand, and equals 3.3 million,” the minister said.

According to him, under the programme entrepreneurs receive the appropriate support measures, including interest rate subsidies, loan guarantees, State grants, training, and infrastructure.

282 billion tenge has been allocated from the busget to implement the programme.

“More than 16 thousand SMEs were funded, more than 100 thousand entrepreneurs were trained, products worth 15.5 trillion tenge were produced, taxes worth about 1 trillion tenge were paid,” he said.

The Business Road Map 2020 programme offers an opportunity to develop a business, with its participants receiving loans at 7.1%. The maximum available loan amount is 2.5 billion tenge. It is possible to obtain guarantees for 60 million tenge, grants up to 3 million tenge are also provided.

In addition, the measures are in place for training citizens in the basics of business.

“Over the years of the second five-year plan, about 120 thousand entrepreneurs were supported. So, loans of more than 9 thousand entrepreneurs were subsidized, more than 5 thousand entrepreneurs were guaranteed, more than 100 thousand citizens were trained in the basics of entrepreneurship and doing business, about 2 thousand grants were issued, infrastructure for 165 projects was brought up,” he said.

This year the Business Roadmap 2020 programme nears its completion, while a new draft program is under preparation.

As he notes, the goals and objectives are the same, and there will be better support tools. The amount of working capital loans increases from 60 to 360 million tenge

Access to finance is expanding. To this end, subsidies and guarantees for loans issued by microfinance organizations are introduced. Requirements for program participants are improved to ensure the growth of employment and tax revenues. Support for entrepreneurs at all stages is increasing, with training, assistance in preparing documents for obtaining loans and support, establishing a sales chain in place.

According to him, 421 billion tenge is allocated for the Programme’s next stage, 1.5 times more than in the previous five years.

“The Business Road Map 2025 set the target indicators that are in line with the Strategic Plan for the Development of the Country until 2025. An increase in the share of SMEs in GDP of at least 35% is expected, bringing the share of manufacturing in the structure of GDP by at least 13.4%,” the minister said.

Progressive SME development will lead to a qualitative change in the economy, with the drastic improvements in business conditions. The barriers reduce as well as the list of permits. Incentive measures are being taken to develop SMEs.

“Our task is to improve the business climate, which will contribute to economic growth. Over a third of the economy will be accounted for by SMEs in 2025. And by 2050, SMEs will already be half of GDP,” he said.

Photo credit: primeminister.kz

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