Government support of small and medium business in Kazakhstan
description
Transcript of Government support of small and medium business in Kazakhstan
Government support of small and medium business in Kazakhstan
676 thous.
2 522 thous.
$46 262 mln.
Lending by banks in 2010
(18% in total lending
$4 663 mln.
(93% of all enterprises)
(31% of total employment)
(28% of GDP)
Number of active SMEs
People employed
Production in 2010
Distinctive features of SMEof Kazakhstan
dynamically developing sector
institutional scale: more than 93% of all enterprises
Sector and regional disproportion
Sectoral structure of SME
Regional structure of SME (thous.)
Kazakhstan’s SME Sector
Source: Kazakhstan’s Agency of statistics (www.stat.kz), National Bank of Kazakhstan (www.nationalbank.kz) as of 1 January 20112
25% 21% 24% 20%
23% 27% 16%
6%
3%5%
10%
11%
4% 6% 15%
18%
37% 35% 28%41%
8% 6% 7% 4%
0%
20%
40%
60%
80%
100%
Number of entities
Number of employed
Production Lending by banks
Transport & Communication
Retail & Wholesale
Construction
Manufacturing
Agriculture
Other
151719192124242727
3737
4464
69108
124
0 20 40 60 80 100 120 140
Kyzylorda obl.Mangistau obl.
Atyrau obl.West-Kazakshtan obl.North-Kazakhstan obl.
Aktobe obl.Pavlodar obl.
Akmola obl.Astana city
Kostanay obl.Zhambayl obl.
Karaganda obl.Almaty city
East-Kazakhstan obl.Almaty obl.
South-Kazakhstan obl.
3
Comparison of conditions of doing business in Kazakhstan and other countries
The position of Kazakhstan in World Bank’s «Doing Business 2010» ranking on the ease of doing business*
Kazakhstan is the most improved economy in 2011During 2007-2011 Kazakhstan improved its position from 80 to 59 place
Country
Ease of Doing
Business Rank
Starting a Business
Getting Credit
Protecting Investors
Paying TaxesTrading Across Borders
Enforcing Contracts
Singapore 1 4 6 2 4 1 13
USA 5 9 6 5 62 20 8
Kazakhstan 59 47 72 44 39 181 36
Russia 123 108 89 93 105 162 18
Uzbekistan 150 106 138 132 154 169 44
1. Financial Support
GOVERNMENT SUPPORT OF SMES
Development of solid infrastructure of financial support
Financing
2. Non-Financial Support
Development of solid infrastructure of
non-financial support
Information-analytical support,
Consulting, Training
4. Administrative regulation
5. Fiscal regulation
6. Providing access to physical infrastructure
3. Stimulation of demand on SME products and services
- 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
Integration of SME with large business
Development of state procurement system
Protection of competition,Measures of tariff and
nontariff regulation
Government support of SMEs
4
JSC “Entrepreneurship Development Fund ‘DAMU’”: JSC “Entrepreneurship Development Fund ‘DAMU’”:
Established in 1997 by the Decree of the Government of RK
Sole shareholder – national managing company JSC “National Welfare Fund ‘Samruk-Kazyna’”
“Damu” – National Development Institute
5
16 regional branches one in each oblast (region) and in two cities: Astana and Almaty
270 employeesin head office and regional branches
As of 01-01-2011:Assets – $1 472 mln. Equity – $291 mln.
Mission:Assisting qualitative development of SME in Kazakhstan
Mission:Assisting qualitative development of SME in Kazakhstan
Strategic goals:Integration of government measures of entrepreneurship support To provide wide range of financial and non-financial instruments to support SMEInstitutional development of business environment
Strategic goals:Integration of government measures of entrepreneurship support To provide wide range of financial and non-financial instruments to support SMEInstitutional development of business environment
Vision:Damu – national institute, major operator and integrator of entrepreneurship support measures in Kazakhstan
Vision:Damu – national institute, major operator and integrator of entrepreneurship support measures in Kazakhstan
Fund’s programs for 2010-2020
6
Results of SME Financial Support Programsas of 1 January 2011
Distribution by banks Distribution by sectors
7
46% 25%
16%5%5%
3%
Retail & Wholesale ServicesManufacturing ConstructionAgriculture Transport & communication
25%
13%
13%
10%9%
7%6%
17%
BTA Bank ATF BankBank CenterCredit Eurasian BankKazkommertsbank Alliance BankKaspi Bank Nurbank
№ Program Amount, mln.$ SMEs Jobs1 Stabilization program – 1st tranche 580 2 782 3 0492 Stabilization program – 2nd tranche 1 067 2 914 4 2193 Stabilization program – 3rd tranche 1 272 2 911 3 8474 Damu-Regions 311 1 346 2 2305 Damu-Regions 2 22 52 5206 Damu-Ondiris (Manufacturing) 234 207 48297 Financing of MFOs 9 9 -8 Program of female entrepreneurship development 8 337 889 Program of SME financing in Zhanaozen 1 11 8
10 Financing of leasing operations 7 35 94411 Targeted programs of financing in regions 5 12 79 Total 3 516 10 616 19 813
8
“Business-Adviser” Program Creation of Business Support Centers Call-center Business-portal
Geographic Information System (GIS) Analytical Paper on SME “My Business. Kazakhstan” Magazine SME Round tables and Forums
“Damu-Komek” Program Television broadcast «Together»
Results of SME Non-Financial Support Programsas of 1 January 2011
Site: www.gis.damu.kz 2 issues of analytical book published 13 issues of magazine (monthly) Open-house days of National
development institutions in regions
28 000 attendees (209 districts of Kazakhstan)
2 district and 5 regional BDCs created
91 entrepreneurs supported 24 entrepreneurs were featured on TV
Fund started the implementation of non-financial support programs in 2009
Implementation of non-financial programs revealed a high demand from target audience
9
Promote growth of regional businesses in the priority sectors of economy
Maintain existing and create new permanent jobsGoal:
“Business Roadmap 2020” Program
Financial instruments:
1.Interest rate subsidies (up to 7-9 %)
2.Loan guarantees
3.Deferral of tax payment up to 3 years
SME Support Instruments:
1st direction: 115 contracts for subsidies, 11 contracts for guaranteeing
2nd direction: 42 contracts for subsidies
3rd direction: 24 contracts for subsidies
Current status:
Stages of creation of BDCs in regions:
SERVICES:
Business Development Centers (BDCs)
Programs in terms of international cooperation
10
consulting, service support (outsourcing of services)Maintaining databases on suppliers and customers
Marketing researchesTraining courses, seminars
Raising funds from Asian Development Bank
Goal: To raise long-term funds for conditional placement in banks for the following lending to SMEs
Terms of loan:Amount – $500MInterest rate – Currency Swap + 0.3%Tenor – up to 7 yearsPurpose of loan – financing of new SME projects Backed by the guarantee of Ministry of Finance
Emphasis:
1. First large loan to Kazakhstan development institute from foreign institution in post-crisis period
2. An alternative to the usage of state budget funds – the realization of loan agreement is strategically important for Damu in the way to self-financing
3. Opportunity to provide SMEs with long-term financing (for modernization and acquisition of new resources)
Board of Directors of ADB approved loan provision The expected date of loan disbursement (1st tranche) – 2011
Current status:
Head office:111 Gogol Street, Almaty, 050004Tel.: +7 (727) 244 55 66, 244 55 77
Tel./fax: +7 (727) 278-07-76E-mail: [email protected]
Website: http://www.damu.kz
Thank you for you attention!
11