Transcript State Support of Small and Medium Entrepreneurship in Kazakhstan

State Support of Small and Medium
Entrepreneurship in Kazakhstan.
The Experience of Fund “Damu”
2012
Republic of Kazakhstan
 Area: 2 725 thousand km2
 Population: 16,81 million people
(urban: 55%, rural: 45%),
 GDP 2011: $182,2 billion
(goods: 43.1%, services: 56.9%)
 GDP per capita - $ 11,000.
 Economically active population – 8,8 million people
 Capital: Astana (763 thousand citizens)
Other
31%
 Financial center: Almaty 1 564 thousand citizens)
Manufacturin
g
33%
Administrative division:
 14 regions
 Astana
 Almaty
Transport &
Communicati
ons
Construction
11%
8%
Agriculture
4%
Trade
13%
 Banking system: National Bank of Kazakhstan and 38 commercial banks
 Overall assets of commercial banks – $90,7 billion
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Major Indicators of Kazakhstan’s SME Sector*
Кол-во
субъектов
Number
of Enterprises
Занятое
население
Employees
Выпуск
Outputпродукции
Center
Центр
119 thousand
467 thousand people
2 oblasts
2 области
1 city
South
Юг
$7 583 million
375 thousand
1 141 thousand people
oblasts
4 4области
1 city
North
Север
oblasts
2 2области
East
Восток
oblasts
2 2области
West
Запад
oblasts
4 4области
$16 936 million
60 thousand
243 thousand people
$2 847 million
94 thousand
356 thousand people
$3 263 million
106 thousand
374 thousand people
$9 476 million
*Data as of 01.06.2012
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Kazakhstan is 47th, according to Doing Business
80
2008
64
63
58
2009
2010
2011
Country
Singapore
USA
Georgia
Malaysia
Kazakhstan
Kyrgyzstan
Turkey
China
Russian Federation
Ukraine
47
2012
2012
Rating
1
4
16
18
47
70
71
91
120
152
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Government support of SMEs in Kazakhstan
Improvement of legislative network
GOVERNMENT SUPPORT OF SMES
1. Financial Support
2. Non-Financial Support
3. Stimulation of demand on
SME products and services
Development of solid
infrastructure of
financial support
Development of solid
infrastructure of
non-financial support
Integration of SME with
large business
Financing
Information-analytical
support,
Consulting, Training
Development of state
procurement system
Protection of competition,
Measures of tariff and
nontariff regulation
4. Administrative
regulation
5. Fiscal
regulation
6. Providing access to
physical infrastructure
- active role of Damu
Fund acts as an operator or agent of programs
- advisory role of Damu
Fund acts as a member of interagency working groups
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“Damu” – National Development Institute
JSC “Entrepreneurship Development Fund “Damu”:
 Established in 1997 by the Decree of the Government of the Republic of Kazakhstan
 Sole shareholder – State-owned JSC “National Welfare Fund “Samruk-Kazyna”
 Mission: Assisting qualitative development of SME in Kazakhstan
 16 regional branches
 274 employees
one in each oblast (region)
and in two major cities:
Astana and Almaty
1997
2002
Agent: accounting and
control of state budget
funds on ADB and
EBRD credit lines
 As of 01-06-2012:
Assets – $1.22 bln.
Equity – $0.32 bln.
in head office and
regional branches
2007
Direct lending to
small enterprises
from own funds
2009
Operator of
conditional allocation
of funds under
Stabilization Program
4
financial
programs
2011
…
Financial Agent of
«Business Roadmap
2020» Program
15
financial
programs
10
non-financial
programs
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Programs of “Damu” on Entrepreneurship Support
Programs for increasing
volumes and accessibility
of financing for SMEs
Programs for diversification
of entrepreneurship sector
and its industrialinnovative development
Programs for developing
competence of
entrepreneurs
Stabilization program
(1-3 tranches)
Business Roadmap
2020 (1-3 directions)
Business Roadmap
2020 (4 direction
Programs «DamuRegions», «DamuRegions 2»
Targeted regional
programs (Zhanaozen,
Akmola, Almaty oblats)
SME financing in small
towns
Program «DamuOndiris», financing of
leasing contracts in
manufacturing
Development of
franchising
Micro-lending of women
entrepreneurs
«Senior Experts»
Program
SMEs are financed according
to the general conditions
Special conditions for
industrial innovation projects
“Enhancing entrepreneurial
capabilities" )
Entrepreneurship
development centers
Business-portal, Callcenter, informationanalytical materials
Promotion of new business
ideas and projects through
training and consulting support
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12,405 entrepreneurs were covered by financial
support programs
1 334
1 400
1 200
1 000
800
1 000
8 445
602
600
417
400
3 631
3 233
2 232
2 364
East
West
2 008
200
0
725
6 182
3 365
2 500
Сenter
1 452
South
Amount, mln $
North
Borrowers
Jobs
15 banks
Amount- $4 304 billion; jobs created - 24 324
Participants
4 leasing companies
*As of 01.06.2012
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Program "Business Roadmap 2020"
 Sustainable and balanced growth of regional entrepreneurship in non-primary (not
Goal:
associated with extraction of raw materials) sectors of the economy
 Maintaining existing and creating new permanent jobs
Program directions:
1. Support for new 2. Business Sector
business initiatives
Improvement
1. Interest rate
subsidies (7%)
1. Interest rate
subsidies (7%)
2. A partial guarantee for
loans (up to 70%)
2. Granting a
delay in payment
of taxes
(except IAS) for up to
3 years without any
penalty fees
3. Development of
production (industrial)
infrastructure
3. Other activities within
the plan of financial
and economic
development
3. Currency risk
reduction
1. Interest rate
subsidies on existing
loans (8%)
4. Strengthening
Entrepreneurial
potential
1. Training for start-up
businesses
2. Leadership training
3. Business service support
4. «Business connections»
Project
5. Training, support for
youth practice
and social jobs
Fund "Damu" - financial agent of interest rate subsidies and loan guarantee under the 1-3rd direction of the
program and the operator of the 4-th direction
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Results of "Business Roadmap 2020"
Results of the directions 1-3
Support instrument
1 direction–
subsidizing
1 direction – loan
guarantee
2 direction–
subsidizing
3 direction–
subsidizing
Total:
Results of the direction 4
Contracts
Amount of loans,
million USD
1 222
998,0
50
72,6
174
891,3
118
488,7
1564
2 450,6
1246 entrepreneurs receive support in the form of
subsidized interest rates and loan guarantee
Number of
participants/services
Support instrument
Training for start-up businesses
15 645
Business service support
19 000
Leadership Training
420
«Business connections» Project
711
58 people in Germany, 10 people in USA
More than 43 000 new and existing entrepreneurs
have been trained
Program Impact:
The volume of
planned subsidy on
the interest rate
Directions 1 and 3
$484 ths
Direction 2
$479 ths
The volume of planned tax
revenues from the
program participants
Directions 1 and 3
$2,1 mln
2 направление
$657,8 тыс.
Current jobs
Jobs created
Directions 1 and 3
66 107 people
Direction 2
14 000 people
Directions 1 and 3
12 818 people
Direction 2
5 150 people
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New instruments of the Program
Interest rate
subsidies on leasing
agreements
• Interest rate subsidies on leasing agreements (7% of the maximum
rate of 14%)
• Targeted assistance for renewal of fixed assets
New system of
guaranteeing
• Individual guarantees for large borrowers - loan in the amount of $
400 thousand to $ 5.0 million
• Express guarantees for existing entrepreneurs - for loans up to $ 400
thousand
• Express guarantees for new entrepreneurs - for loans up to $ 135
thousand
Instruments on
beginning
entrepreneurs
support
• Express guarantees on loans under simplified conditions
• Grant financing
• Service Support and Training
«Business-Nasikhat»
Project
• Information support for entrepreneurs and entrepreneurship promotion
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Programs Aimed at Diversifying Enterprise and its
Industrial-Innovative Development
(Actively implemented since 2011)
 The aim is to ensure sustainable and
balanced growth of regional
entrepreneurship in non-primary sectors
of the economy
 The program is implemented within the framework of the SPIIR of Kazakhstan for 2010-2014
period.
Subsidized interest rates on 26.09.2011г.:
Supported
projects
The total amount of
credits, mln. $.
The sum of the paid
subsidies, mln. $.
1 track
357
454,5
8,8
1 track
105
672,8
14,0
3 track
38
245,6
12,2
Subtotal
500
1 372,9
35,0
Guarantees for loans at 26.09.2011:
1 track
Issued
guarantees
The total amount of
credits, mln. $.
Guarantee amount, mln. $.
16
28,1
13,7
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Results of the Programs on Developing Competence
of Entrepreneurs
As of 01.06.2012
4th direction




Support for business start-ups
Business Service support
Leadership training
«Business connections» program
 43 752 attendees (in 2011 - 15 645 attendees )
 More than 18,000 services were provided to over
9000 SMEs
 210 attendees within 7 groups
 501 participants, 58 of them took an internship in
Germany
Consulting
 Creation of Business Support Centers
 Call-center
 Business-portal
 16 regional BSC created, 1 district in Zhanaozen
 Call-center was launched in March 2011. 2500

consultations monthly
In a test mode
Information support and feedback
 Geographic Information System (GIS)
 Analytical Paper on SME
 Methodological manuals for entrepreneurs
 Site : www.gis.damu.kz
 3 issues of analytical book published (annually)
 Together with the Franchise Union 10 000 copies
were prepared
Support of entrepreneurs
with disabilities
 “Damu-Komek” Program
 Site : www.damu-komek.kz
 490entrepreneurs were supported
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Thank you for you attention!
Head office:
111 Gogol Street, Almaty, 050004
Tel.: +7 (727) 244 55 66, 244 55 77
Tel./fax: +7 (727) 278-07-76
E-mail: [email protected]
Website: http://www.damu.kz
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