In 2018, the number of registered small and medium-sized enterprises (hereinafter - the SMEs) in Kazakhstan rose 1.8% to 1, 569 thous. entities. They
currently account for 96.7% of all business entities operating in the country. Industry-wise, the largest growth occurred in the past year in Power
Supply, Education, Mining Industry, Services, Art and Entertainment sectors. Reduction in the number of registered SMEs occurred in Transport and
Warehousing, Trade. (Graphic 1)
The number of active entrepreneurs rose by 8.3 %.
Graphic 1
NUMBER OF REGISTERED SMEs IN KAZAKHSTAN
2 500
200
THE NUMBER
OF ACTIVE
1 540
1 569
1 501
ENTREPRENEURS
150
1146
1241
ROSE BY
1106
1 000
100
96,2
96,7
96,1
8,3%
0
50
2016
2017
2018
Registered SMEs, thous
Number of population employed by SMEs, thous. people
SMEs in the total number of commercial entities, %
According to the Statistics Committee of the Ministry of National
Source: Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan
Economy of the Republic of Kazakhstan, as of the end of 2018,
there were 8,704 thous. employed individuals in the country.
Graphic 2
At the same time, as of January 1, 2019, SMEs employed 3,268 thous.
DYNAMICS OF EMPLOYED POPULATION IN KAZAKHSTAN
people (37.5% of the employed population). Compared to the
previous year, SME employment rose 0.9%. (Graphic 2)
10 000
50,0
8 585
8 704
8 553
During the recent seven years, Kazakhstan’s GDP in real terms
8 000
40,0
has been growing steadily. In 2018, Kazakhstan’s GDP grew 3.9%
37,0
36,6
37,5
reaching KZT 58,786 bln. Goods account for 38.3% of GDP
6 000
(including 28.7% for Manufacturing), while Services and Product
30,0
Taxes account for 54.4% and 7.3% respectively.
4 000
3 167
3 268
3 145
20,0
2 000
According to the Statistics Committee of the Ministry of National
Economy, in 2018, SME output was valued at KZT 26,490 bln.
0
10,0
This is a year-on-year increase of 7.5% (at basic prices). In 2018,
2016
2017
2018
SMEs accounted for 68.8% of the products produced, medium-
sized enterprises made up 19.6%, while sole proprietors and
Employment in the economy, thous. persons
farms accounted for 11.6%.
Employment in the SME sector, thous. persons
Percentage of employment in SME sector, % (right axis)
The gross value added of SMEs in GDP in 2018 was 28.9%
Source: Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan
(Graphic 3).
ANNUAL REPORT 2018
Graphic 3
Loans to entrepreneurs and the Fund’s share in lending
DYNAMICS OF GDP AND SME OUTPUT IN KAZAKHSTAN
Overall, bank lending in 2018 increased 24.4 % up to KZT 13.5
bln, loans issued for business- related purposes also show
80 000
50
a significant growth of
23.6%, lending to small business
entrepreneurship - a growth of 14.0%. (Graphic 4)
58 786
40
60 000
51 967
46 971
28,9
30
26,8
25,6
40 000
20
26 490
21 148
20 000
16 857
10
PRIVATE
ENTITIES
0
0
RECEIVED
2016
2017
2018
GDP, KZT bln
SME output, KZT bln
Gross value added of SMEs in GDP, % (right axis)
495
Source: Statistics Committee of the Ministry of National Economy of the Republic of Kazakhstan
KZT BLN
IN LOANS
Graphic 4
LENDING TO ECONOMY AND SMALL BUSINESSES
In
2018, Fund continued to implement its programs of
conditional allocation of funds to STB, LC and MC, providing
subsidized interest rates to entrepreneurs and loan guarantees.
13 460
15 000
100,0
10 819
9 833
Overall, in the past year,private entities participating in the
78,5
9 412
80,0
Fund’s programs received KZT 495 bln in loans. Loans issued
70,4
7 721
69,9
by the Fund make up just 5% of bank lending for business-
10 000
7 615
60,0
related purposes. This is because the Fund’s programs are
limited to priority sectors of the economy which do not
40,0
include Trade and Construction accounting for
50% of
5000
lending by STB.
20,2
1 984
1 737
20,0
1 524
12,9
14,1
Looking at the priority sectors of the economy alone, we will
0
10,0
see that the Fund’s contribution has decreased to 10.4%,
2016
2017
2018
which is 6.2 points lower compared to the previous year.
(Graphic 5)
Loans in the economy, KZT bln
Loans for business purposes, KZT bln
Loans for small businesses, KZT bln
The Fund’s share of loans in the Processing sector fell from
Percentage of loans for business purposes, % (right axis)
17.2 % in 2017 to 14% in 2018. At the same time, we will see
Percentage of loans for small businesses, % (right axis)
that loans provided by the Fund in the Processing sector
Source: National Bank of the Republic of Kazakhstan (www.nationalbank.kz)
increased by KZT 5 bln compared to 2017.
ANNUAL REPORT 2018
Decrease in percentage of the Fund’s loans in priority sectors
Graphic 5
and the Processing sectors is due to completed use of funds
LOANS FOR PROJECTS
allocated under the framework of programs to support SMEs
IN PRIORITY SECTORS OF THE ECONOMY
in the Processing sectors out of the funds of the National
Fund in 2014-2015 and change in the Development Strategy
of the Fund towards increase in the number of supported
4 000
30,0
3 732
micro and small businesses. (Graphic 6)
3 219
3 000
2 835
Along with financial support programs in 2018, the Fund
20,0
continued a large-scale campaign offering training and
16,4
16,6
2 000
advice to entrepreneurs.
10,4
10,0
In
2018, as part of the project
“Remote Support for
1 000
Entrepreneurs” based on edu.damu.kz web platform, training
529
472
387
was provided to 7,219 individuals.
0
0,0
2016
2017
2018
At the end of the reporting period, there were
2,949
entrepreneurs (including 424 individuals in 2018), who took
Loans from STB in priority sectors of the economy, KZT bln
“SME Top Management Training” course as part of 2020 Business
Road Map Entrepreneurship Support and Development State
Loans under Fund`s programs in priority sectors of the economy, KZT bln
Program (hereinafter - 2020 BRM).
Percentage of loans under programs
in priority sectors of the economy, % (right axis)
Graphic 6
TRAINING
LOANS FOR PROJECTS
WAS PROVIDED
IN THE PROCESSING SECTOR
BASED ON EDU.DAMU.KZ
WEB PLATFORM TO
1 600
40,0
1 493
1 455
1 153
1 200
30,0
7 219
INDIVIDUALS
21,1
800
20,0
17,2
14,0
10,0
400
315
198
203
In 2018, 18 Entrepreneur Service Centers and 14 Mobile
0
0,0
016
2
2017
2018
business support centers had
25.3 thous. visitor, who
received more than 34.6 consultations.
Loans from STB in the Processing sector, KZT bln
At the end of 2018, Entrepreneur Service Centers facilitated
Loans under Fund`s programs
in the Processing sector, KZT bln
6,410 projects up until the moment when SME applications
Percentage of loans under Fund`s programs
for joining the Fund’s program were approved by a particular
in the Processing sector, % (right axis)
STB/ LC/ MC.
ANNUAL REPORT 2018
ECONOMIC OUTLOOK AND SMES IN KAZAKHSTAN FOR 2019
services will maintain the trajectory of fa-
vorable growth due to the implementation
of the export strategy of the country.
According to the Ministry of National Econ-
commodity prices. At the same time, steady
The monetary policy in
2019-2023 will
omy, in the period from 2019 to 2023 Ka-
and progressive economic dynamics are
have a favorable impact on promoting
zakhstan’s economy will show annual growth
expected due to a higher increase in gross
growth of the investment market and
of 3.9 - 4.6 %. The Ministry also expects a
capital formation, moderate and sustainable
lending by STB. For the coming period, it
3.9 % annual economic growth in 2019.
growth of household spending and net ex-
is expected to grow 7.9%, per annum on
ports. One of the important growth factors
average, in nominal terms it will increase
Kazakhstan’s economy will be growing
is the increase in exports of goods and ser-
from KZT 15.2 bln in 2019 to KZT 20.6 bln
against the background of the moderate
vices. After adaptation of the economy to
in 2023. Personal savings accounts in the
growth rates of the global economy, a grad-
low world prices for oil and metals in 2019-
same period will grow at 8.1 % and make up
ual increase in demand and moderate raw
2023, the dynamics of exports of goods and
KZT 28.8 bln in 2023. Money supply will
Shymkent city, Factory S.J.SAMRUK. Men’s suits sewing project.
The company has received support through the guarantee instrument in the framework of the 2020 BRM
ANNUAL REPORT 2018
be commensurate with economic growth,
um-sized entrerprises aimed at expansion
ing business rating will be introduced for cities
overall, planned monetization value will
of investment opportunities of a specified
and regions with the creation of special award.
be within 37.3 %. In the forecast period, it
group of enterprises in the processing and
is planned that inflation will decrease to
agricultural sectors as well as services;
Under the framework of the 2020 BRM,
3.0-4.0 % in 2020-2023.
— new social initiatives providing for in-
the government will continue to take sup-
creased access to purchasing of accommo-
port measures such as providing subsidized
Advanced growth of investment will be fa-
dation and higher education through greater
loans, offering partial guarantees for bank
cilitated by the implementation of the fol-
investments in these spheres;
loans, building the required infrastructure,
lowing measures of the Government of the
— effective mechanisms of public-private
providing government grants, training and
Republic of Kazakhstan:
partnership through the creation of attrac-
consulting to entrepreneurs. Additional
— Project management initiatives aimed at
tive conditions for the investment of private
support will include further measures with-
reduction of business-related cost, increase
capital including debt capital, in infrastruc-
in the joint action plans of the government
of labor productivity, increase in added val-
ture construction.
and the National Bank with funding coming
ue through operative and effective manage-
from the National Fund. To maintain addi-
ment of projects and optimum use of raised
At the regional level, a set of measures will be
tional liquidity in the lending market, more
investment funds;
adopted to develop mass entrepreneurship,
credit lines will be obtained from interna-
— measures for lending to small and medi-
reduce all types of business costs. Ease of do-
tional financial institutions.
Atyrau region, “TransTech International” LLP. Bakery and pasta production project, “Daulet Nan” bread production plant.
The company has received governmental support
in accordance with the SME Manufacturing Support Program, covered by the National Fund of the Republic of Kazakhstan
ANNUAL REPORT 2018