SMES gain momentum as Damu fund continues support

SMES gain momentum as Damu fund continues support

Entrepreneurship is one of the foundations of the successful development of Kazakhstan's economy. Thus the government strives to support the the small and medium enterprises, the share of which is planned to be increased to 40% by 2020. Such task was set by President Nursultan Nazarbayev. Nearly 35,000 business projects were launched in the past 8 years with support of the entrepreneurship development fund Damu.  Tax revenues from these projects only this year are forecasted to reach 155 billion Tenge.



We paid attention to the latest bulletin of the OECD. We tried to see how we are approaching the top countries. On the SME lending coverage in 2010-2014, we are approaching maximum level.


Ways of supporting entrepreneurship have long become a point of contact both for public and financial institutions. The Asian Development Bank is actively investing in Kazakhstan's business. $500 million were allocated over the past five years. The Damu Fund will receive another $200 million from the bank in the near future. Small and medium-sized businesses will be able to receive funds at low interest rates through the second-tier banks. Every fifth borrower gets a loan on favorable terms from the Damu Fund.



There are various support programs, franchising promotion and development measures.


The fund has provided support for more than 9,000 franchise enterprises.


Marat Nazarov started his business – a mobile vehicle service station this year. Together with nearly 1,200 Kazakhstanis he took training on how to set up a business, on marketing tools and business management. He was also able to receive legal help and consultations from lawyers of the fund. Now his business is gaining a positive momentum. Soon Marat plans to expand and launch his second mobile vehicle service stations.



I'm one of those people who really started their own business without any contacts. I received support from Damu Fund. Everything was done very quickly. It is a very good opportunity for novice entrepreneurs.


More than 100,000 people in Mangystau region are running businesses. 75-year-old Nuriyash Niyazova founded the first show room of Kazakh traditional costumes on Mangyshlak peninsula in 1985. Later her business grew successful far beyond Kazakhstan. She was awarded a gold crown award in London for her contribution to the fashion industry.



Today, I promote traditional fashion, our traditional clothing worldwide. I receive orders from Europe and even from the U.S.


Another, no less successful businesswoman Irina Belyaeva supplies furniture to the whole region. In the 1990s, it was hard to start and run a business, Belyeava recalls. Government programs helped her start her business, says the entrepreneur.



I believe that the conditions for business development in Kazakhstan are among the best.


Currently, more 1.5 million people are running small and medium-sized businesses in Kazakhstan. During the past six years of the 'Business Road Map 2020' program implementation, its participants have paid taxes in the amount of $1.6 billion (534 billion Tenge). The amount of paid taxes exceeds by four times the amount of the subsidies. According to experts, this indicates the high percentage of return on investment  to the state budget as well as the efficiency for the program.