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What keeps down development of entrepreneurship in Kazakhstan?

by March 27, 2017 Market

According to the Minister, the state has achieved significant results in permitting system, by means of simplification of all system in general and by reduction of allowing documents for 50%, or on 196 permissions. At the moment the number of permits makes 316.

“Today, there is an unpredictable growth in permits issued by monopoly enterprises and quasi-public enterprises, which aren’t regulated by law today. The lack of order of issuance creates significant difficulties for entrepreneurs, entails temporary and financial costs and is an essential administrative barrier for business”, – T. Suleimenov noted.

So, one of the significant administrative barriers to the development of entrepreneurship is a large number of information tools, that is, the obligation of the business to provide various kinds of reports, certificates and other information to state bodies and their subordinate organizations.

“Any reporting is, above all, an administrative barrier that attracts the costs of business. For example, payment of labor costs for employees who execute instructions to fill out reporting forms and study the legal framework, the cost of third-party organizations for consultation”, – T. Suleimenov emphasized.

The Head of the MNE of Kazakhstan announced that in this connection the work on reforming information tools was started, which is designed to systematize the process. In 2016 part of the work has already been done, as a result of which there were about 1 200 requirements for entrepreneurs to provide various kinds of reports.

In execution of the instructions of the Head of State and with the support of the Majilis of the Parliament of Kazakhstan over the past 2 years, a number of significant measures in the sphere of the state control and supervision have been adopted in the country to radically improve the business environment.

“This allowed to reduce the number of inspections compared to 2013 by 45%. Besides that, in addition to the measures already taken, in order to reduce the control burden on business, the Government, together with the National Chamber of Entrepreneurs (NCE), conducts an audit of the control and supervisory functions of state bodies. For ensuring better work, an expert group was created, which included representatives of government agencies, the Prosecutor General’s Office, “Atameken” NCE and the business community”, – the Minister concluded.

It should be reminded that Minister of National Economy Timur Suleimenov during the government hour in the Majilis of the Parliament of Kazakhstan announced that for support of SMEs in the country, 18 business service centers and 188 business support centers function, and also 14 mobile BSCs for the purpose of rendering consultation ply in rural area. In addition, 200 billion tenge from UAPF funds will be invested in financial instruments of second-tier banks.

Source: Kazakhstan 2050