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Support for small and medium-sized businesses: Funding for Business Road Map 2020 program increased by 57%


Reporting on the development of small and medium-sized businesses in the country, the Minister of National Economy Ruslan Dalenov informed that 210 billion tenge was allocated from the republican budget for the implementation of the state program. These funds financed 13 thousand of SMEs, 10 thousand jobs were created, and production amounted to 3.3 trillion tenge.

Most of the funds allocated 126 billion tenge, or 60.2% of the total amount are used to subsidize the interest rate on loans. About 53 billion tenge or 25.2% was allocated to supply the missing infrastructure to the factories, plants and production facilities of small and medium businesses. The rest is aimed at guaranteeing loans, providing grants, training and providing consulting services to entrepreneurs.

During the period of the program implementation, the full utilization of the allocated funds was achieved. At the same time, financing for 2019 is provided for 57% more than in 2018. According to the results of the first quarter of 2019, 715 projects have already been supported, for which subsidies and guarantees have been paid for 11.5 billion tenge, Dalenov reported.

Meanwhile, about 20 thousand entrepreneurs study annually and increase their competence, and on average 154 thousand entrepreneurs receive consulting and maintenance services annually.

As of Jan. 1, 2019, the number of operating small and medium-sized businesses reached 1.2 million. In comparison with the same period in 2018, this figure increased by 8.3%.

On behalf of Elbasy, 600 billion tenge was allocated to solve the problem of affordable lending for the development of the economy of simple things in 2019. For this, 365 commodity items from 65 types of economic activity were determined. Within the framework of the Crediting Mechanism of priority projects, currently, 282 applications for a loan amount of 283 billion tenge are at the preparation stage.

In addition, to stimulate the development of SMEs further, the 7th package of legislative amendments on the development of the business environment was adopted, aimed at creating favorable conditions for the development of entrepreneurial activity. As part of the extension of the Business Roadmap�2020 until 2025, amendments were prepared to improve the tools of financial support.

In turn, Minister of Industry and Infrastructure Development Roman Sklyar said that for the effective implementation of the program of preferential loans for priority projects under the economy of simple things, from March 18, 2019, based on Atameken National Chamber of Entrepreneurs, a Project Office for monitoring the implementation of the program was established.

To date, seven meetings of the Project Office have been held, within which more than 300 regional enterprises have been heard. In the work of the Project Office there are 344 potential projects worth 306 billion tenge, of which 10 are worth 6.1 billion tenge, approved by second-tier banks, 52 projects worth 16.6 billion tenge are under consideration by the benks, said Sklyar. The bulk of potential projects under consideration in banks are in the fields of light, food industry and services.

The Minister of Agriculture Saparkhan Omarov reported that out of the allocated 200 billion tenge for the development of the agro-industrial complex under the program of concessional lending, 100 billion tenge will be spent on the development of agricultural processing, where the Business Roadmap-2020 subsidizes the rate. Another 100 billion tenge for the development of agricultural production the rate is subsidized under the program of the Ministry of Agriculture, the funds in the budget for these purposes are available.

As for the subsidization of interest rates, in accordance with the register of public services from Feb. 1, 2019. This subsidy is carried out exclusively in electronic form. In addition to subsidies, all content will be available on the platform: digitalization of sown areas, pastures, integration with government bases, weather forecasts based on satellite imagery, tools for measuring soil moisture and much more.

Akims of West Kazakhstan region Altai Kulginov and Pavlodar Bulat Bakauov reported on the implementation of the Business Road Map � 2020 in the regions.

Chairman of the Atameken National Chamber of Entrepreneurs Ablay Myrzakhmetov, in turn, noted that as an operator in the fourth direction of the state program Business Road Map 2020, the chamber provides non-financial support measures for entrepreneurs. Twenty business service centers and 191 business support centers have been established and are functioning. In 2018, more than 138 thousand entrepreneurs used free services; 20,914 entrepreneurs were trained as part of the business school and the Business Connections tool, 64 expert missions of highly qualified foreign specialists with successful experience were carried out to advise directly at the enterprises.

After the consideration of the issue, the First Deputy Prime Minister � Minister of Finance Alikhan Smailov, who oversees these issues, noted that the Business Roadmap � 2020 is an important tool in the development of the country’s economy. The program allowed to complete a lot in the country to support small and medium-sized businesses. Following the results of the revision of business support funds, a state program of business support until 2025 will be developed, which is planned to be adopted before Sep. 1, 2019.

Source: The Prime Minister of Kazakhstan