1

UNDP and Small Business Development in Kazakhstan

November, 2004 г.

Kazakhstan

2Kazakhstan

Current Status of Small Business in Kazakhstan

522,000 small business entities registered

1,250,000 employed in small business sector (approx. 18% of labour force)

Share of GDP contributed by small business sector accounts for 20%

3Kazakhstan

Share of Small Business by Economic Sectors, 2003

25%

75%

2%

98%

75%

25%

18%

82%

Agriculture Industry Trade Services

Small Business Medium & Large Business

4Kazakhstan

Distribution of Small Businesses by Sector, 2003

Construction12.0%

Industry11.0%

Agriculture2.3%

Services9.3%

Transport5.4%

Trade, Repair of Car and Home

Appliances60.0%

5Kazakhstan

Number of Active Small Business Entities, 2003

28.2

8.5

7.6

2.5

5.0

2.9

2.1

4.0

6.5

2.4

2.9

6.3

2.9

4.6

3.8

3.5

17.0

10.2

59.8

18.1

13.4

6.6

9.1

18.7

23.0

11.2

14.2

36.0

7.8

45.9

11.6

15.9

0 10 20 30 40 50 60 70 80

Almaty city

Astana city

S-Kazakhstan

N-Kazakhstan

Pavlodar

Manghistau

Kyzyl Orda

Kostanay

Karagandy

W-Kazkahstan

Zhambyl

E-Kazakhstan

Atyrau

Almaty

Aktobe

Akmola

thousands

Legal entities

Individualentrepreneurs

6Kazakhstan

Number of Active Small Enterprises, x 1 000

67.1

77.4

87.1

50.1

31.2

93.5

0

10

20

30

40

50

60

70

80

90

100

1998 1999 2000 2001 2002 2003

tho

usa

nd

s Annual Rate of Growth of Active Small Enterprises, %

60.6

7.3

33.912.515.4

020406080

1999 2000 2001 2002 2003

7Kazakhstan

UNDP Support to Small Business Development in Kazakhstan

In Semipalatinsk RegionIn Semipalatinsk Region

Business Skills and Support Training for Small Businesses

Micro-credit program for Women

8Kazakhstan

UNDP Support to Small Business Development in Kazakhstan

In Atyrau RegionIn Atyrau Region

Atyrau Business Development Center

Atyrau Micro-credit Center Atyrau Business Incubator

9Kazakhstan

Atyrau Business Development Center: Objective

To develop local capacity to provide sustainable business advisory services to existing SME and potential entrepreneurs in Atyrau.

10Kazakhstan

Atyrau Business Development Center:What Does Center Offer?

business advisory services business trainings and workshopsbusiness and technical information textbooks on business issues liaison between local and foreign partners surveys assistance in project formulation and

implementation

11Kazakhstan

Atyrau Business Development Center: Achievements

955 clients assisted in 2170 meetings; 222 business plans prepared for $7.8

million, 71 financed for $2 million; 504 new jobs created by businesses

assisted; over 400 people participated in trainings; 2 265 books distributed; local NGO took over project activities

upon formal project completion as of January 2004

12Kazakhstan

Atyrau Micro-credit Center: Objectives

Support low-income vulnerable population groups through simplified access to micro-credit

Gradually improve credit culture and discipline, and expose borrowers to the basics of business practices

13Kazakhstan

Atyrau Micro-credit Organisation: Achievements: Number of Trained

350

2400

45005100

7200

January, 2000 January, 2001 January, 2002 January, 2003 January, 2004

14Kazakhstan

Atyrau Micro-credit Center: Achievements: Number of Credits and Amounts Disbursed

1001 109

3705

8771

10324

$26 000$249 000

$840 000

$2 206 300

$2 752 794

January, 2000 January, 2001 January, 2002 January, 2003 January, 2004

15Kazakhstan

Atyrau Micro-credit Center: Achievements: Composition of Borrowers by Sector

200

700

788

1010

55

180 182 184

70 74 83

2000 2001 2002 2003

Trade

Services

Industry

16Kazakhstan

Atyrau Micro-credit Center: Achievements

local registered and fully licensed NGO took over project activities upon formal project completion

17Kazakhstan

Providing favourable environment for starts-ups and small businesses in the region

Atyrau Business Incubator: Objective

18Kazakhstan

29 projects are approved15 small enterprises started their

business in the BI 56 new jobs created

Atyrau Business Incubator: Achievements

19Kazakhstan

Implementation of projects in Atyrau in partnership with the private sector: ChevronTexaco, Tengiz Chevroil, CitiGroup

Successful Practice

20Kazakhstan

Favorable Business EnvironmentGovernment Public Association

of Entrepreneurs International Community

Coordinated policy of small business development

Strengthened role of small business public associations

Close cooperation with government

Better coordination among public associations

Capacity building support to respective governmental bodies and small business public associations

Coordination of donor support in small business development strategy

21Kazakhstan

Financial and Credit SupportGovernment Public Association

of Entrepreneurs International Community

Stimulate banks to work with small businesses (development of financial and credit instruments)

Creating of credit bureau and credit history database

Access to information on credit opportunities

Advisory services for entrepreneurs on credit issues

Training

Technical assistance in capacity building of financial institutions

Advisory services for entrepreneurs and public associations

Coordination

22Kazakhstan

Business Development ServicesGovernment Public Association

of Entrepreneurs International Community

Favourable conditions for development of small business development services sector

Monitoring of needs and demands in BDS

Access to market information

Promotion of advanced business- technologies

Promotion and adaptation of best practices in BDS sector development

Coordination

23

Thank you !

Kazakhstan