Transcript internship taxation

State support of small and medium business
in Kazakhstan: current status and prospects
May 2011, Astana
Social importance of SME and global experience of State
support for entrepreneurship
SME in foreign countries
The main sphere of employment
Formation of “middle class” as a vital
factor in social and political stability
 Every year at the expense of small businesses is
2/3 jobs
In the EU in small businesses employ about
50% of the total employed population
In the United States in a small business with
more than 53% of the total employed
population
In Japan, small businesses accounted for 72%
of the total employed population
 In Kazakhstan there are 2.5 mln. individuals in SME – 31 per cent of the employed population
 There is great scope for development of the sector
 Many countries have special structures and funds to support SMES (SBA (United States), PARP
(Poland), OSEO (France), SBC (Korea), KOSGEB (Turkey), etc.)
 Fund “DAMU" actively works to build partnerships and learn from the experience of foreign state
institutional support for SME
2
Comparison of the SME sector in Kazakhstan with other
countries
100%
99%
98%
99%
81%
99%
93%
69%
75%
52%
54%
52%
59%
56%
 In Kazakhstan there are lower
47%
50%
32% 31%
25%
rates of contribution of SMEs
in GDP and employment
0%
USA
Share in GDP
100%
80%
1%
2%
11%
11%
5%
United Kingdom Poland
Share in employment
4%
7%
13%
21%
47%
6%
40%
58%
23%
23%
3%
4%
32%
7%
37%
27%
12%
0%
USA
5%
United Kingdom Poland
Construction
Trade
8%
20%
Agriculture
Industry
37%
35%
Kazakhstan
Share in the total number of enterprises
11%
12%
60%
10%
Turkey
4%
Turkey
15%
10%
Transport and
communications
 The distinctive features of
industrial structure of SMEs in
Kazakhstan: smaller share of
manufacturing industry and
services
Services
Other
Kazakhstan
3
Conditions for doing business in Kazakhstan
«…We do collect in Kazakhstan not only more friendly attitude to business in terms of social payments, but also on a
number of other positions, in particular, protection of property..»
President of the Russian Union of Industrialists and Entrepreneurs A. Shokhin during the meeting with the
Prime Minister of the RF V. Putin
Rating For "Doing Business“ , World Bank
Ease of doing business ranking
Registration of enterprises
Lending
Protecting investors
Taxation
International trade
in 2008.
80
57
48
51
44
178
In 2009
64
78
43
53
49
180
In 2010
In 2011
74
85
69
57
53
182
59
47
72
44
39
181
 In the “Doing Business 2011» Kazakhstan headed the list of countries with most improved business
conditions
 Among a Customs Union countries the most favourable conditions are in Kazakhstan
(Belarus- 68, Russian Federation- 123)
 Negative dynamics on individual positions illustrates the need for further work to improve conditions
Data source: www.doingbusiness.org
4
Dynamics of Bank lending
Annual volumes of granted loans (bn.
USD)
70
66,1
Loan portfolio of the STB (bn. USD)
60
49,7
60
52,4
51,1
52,0
50
50
40,6
40
40
28,0
30
20
26,0
30
20
12,8
8,7
10
10,3
5,2
4,7
10
11,7
10,8
9,5
0
0
2007
2008
2009
2010
Lending of economy
Lending of small business
01.01.2008
01.01.2009
01.01.2010
01.01.2011
Lending of economy
Lending of small business
 Since 2007:
• Steadily declining annual volumes of lending
• practically not changing the size of the loan portfolio of STB
Data source: National Bank of RK(www.nationalbank.kz)
5
Results of programs of “Damu” on finacial support of
entrepreneurs
By 01.04.2011,
Program
Stabilization programtranche 1
Stabilization program tranche 2
Stabilization program –
tranche 3
«Damu-Regions»
«Damu-Ondìrìs»
Financing SMES in
Zhanaozen city
Women's enterprises
Lease financing for SME
«Damu-Regions 2»
SME projects dot funding
program
Total
Actual issue, Number of
million. $.
borrowers
Created
jobs
597,1
2 791
3 064
1 115,9
2 996
4 382
1 359,3
3 009
3 930
330,2
262,2
1 392
214
2 327
4 834
1,0
17
14
12,1
6,9
22,8
442
39
69
121
1 670
370
6,7
17
80
3 714,2
10 986
20 792
Distribution by region (million. USD)
Almaty city
Karaganda
Astana
East Kazakhstan
Aktobe
Pavlodar
Kostanai
West Kazakhstan
Akmola
South Kazakhstan
North Kazakhstan
Almaty
Mangystau
Qyzylorda
Atyrau
Zhambyl
805
390
351
276
254
239
229
198
172
138
126
123
120
101
94
79
 Over $ 3.7 billion was sent for financing over 10 ths. Borrowers
 Every 5th dollar in lending of SMEs was provided by the government
 Effect of implemented programs:
• Supported liquidity of STBs
• Provided social stability, created and supported by more than 20 thousand. jobs
• 68% of funds aimed at financing projects in the regions, incl. 18% outside of regional centres
Detailed information on: www.gis.damu.kz
6
Interest rates on loans to STBs and the Fund's
programs
Dynamics of rates on loans small business
banks
21%
17%
18,3%
15,7%
16%
15%
Interest rates stipulated placement Fund
programme
14,3%
18%
14,2%
15%
14,0%
14%
16,5%
12,5%
13,3%
12%
13,7%
12,6% 12,2%
11,3%
13%
8,5%
8,0%
9%
12%
6%
11%
2007
2008
2009
1 tranche
2010
2 tranche
DamuRegions
3 tranche
DamuOndiris
Effective rates
Nominal rates
 Despite lower interest rates, for most subjects, especially SMES, start-up business loans of
 lack of credit history
 the absence of collateral
 simplified accounting
Data source: National Bank of RK(www.nationalbank.kz)


STBs continues largely closed
The main barriers for SMES to obtain bank credit:
 poor credit analysis
 high unit costs
 increased lending risks
7
Program "Business roadmap 2020"
 Aim – sustainable and balanced growth of regional entrepreneurship in non-primary sectors
of the economy
The results of the programme at 25.04.2011.:
Directions
Applications
Approved
applications
Contracts
1st direction –interest rate subsidizing
331
258
147
1st direction – loan guarantees
50
14
8
2 nd direction –interest rate
subsidizing
377
94
60
3rd direction- interest rate subsidizing
45
38
27
Problems in implementing the programme:
 Duration of approval applications (processing of applications in multiple stages at different levels),
including guarantee > low number of guarantee treaties
 Since 2011, Fund “DAMU" was appointed Operator of 4-th direction “Enhancing entrepreneurial
capabilities" within the framework of the Program “Business Roadmap -2020 " (training
entrepreneurs, service support, internship abroad)
8
State support for SMEs in Kazakhstan
Improving the legislative framework
State support for SMEs
1. Financial Support
2. Non-financial support
Subsidizing of interest rates
formation of infrastructure
Integration of SMEs with
large business
Information and analytical
support
Consulting, Education
Development of a system
of state orders
Guaranteeing of credits
Provision of resources for
banks, leasing companies
and microfinance
organizations
Protection of Competition
Measures of tariff and
nontariff regulation
Equity financing
4 . Administrative control
3. Stimulating demand for
SME production
5. Fiscal adjustment
6. Providing access to physical
infrastructure
- active role of the “DAMU”
The Foundation acts as an operator or agent programs
- advisory role of the Fund “DAMU”
“DAMU” Fund may enter into interagency working groups
9
Development of guarantee system
 Goal: Maximal coverage of loans with guarantees from the government
TODAY
TOMORROW
Step-by-step approval of
single applications of
entrepreneurs:
«Pool» guaranteeing:
2.Time-consuming assessment
of applications
3.Small coverage of target
audience

1.Assurance of compliance with
sectoral priorities in
accordance with state policy
1.Bigger coverage of borrowers
2.Faster distribution of big volumes of
funds among borrowers
3.Abidance of market rules in terms of
selection of borrowers by banks
4.Higher efficiency of public-private
partnership
10
Fund “DAMU" programs to improve the competencies of
entrepreneurs
 Since 2009 Fund “DAMU" embarked on programs to improve the competencies of entrepreneurs
• Program "Business Advisor"
Education
Information
• Report on the SME
support
sector
• Monthly magazine
“My business. Kazakhstan»
• Geographic information system
Advisorysupport
• Enterprise support centres
• Business Portal
• Call-Center
Feedback
• Roundtables and
forums of SMEs
of Kazakhstan
• Marketing researches
 Интеграция информационно-консультационной и финансовой поддержки позволяет
достичь синергического эффекта, снизить транзакционные издержки и бизнес-риски
МСБ, в т.ч. через повышение профессионализма и прозрачности заемщиков
Обучение, разъяснительная деятельность
Консультации,
услуги ЦПП
Поручительства,
гарантии
Консультации,
услуги ЦПП
1 этап:
Пропаганда
предпринимательства
2 этап:
Формирование идеи,
защита бизнес-плана
3 этап:
Привлечение
финансирования
4 этап:
Ведение бизнеса
11
Thank you for your attention!
Head Office
050004, Almaty, 111 Gogol Street,
Теl.: 8 (727) 244-55-66, 244-55-77
Теl./fax: 8 (727) 244-83-41
E-mail: [email protected]
Site Facility: http://www.fund-damu.kz
12