SMEs vs large business
Kazakhstani business is mainly represented by small businesses in the form of individual enterprises, peasant farms and legal entities
SMEs or large business: which is more important?
In Kazakhstan among all enterprises and organizations that are engaged in business activities 72% are individual entrepreneurs (IE), 14% are peasant and individual farms (peasant), 13,6% - small enterprises (SE). The share of large enterprises (LE) is small and is 0.1%.
In other words, Kazakh business is mainly composed of small enterprises in the form of individual entrepreneurs, farms and businesses.
At the same time, if we compare the number of small and medium enterprises (SMEs) in 2015 and in 2014, there is a decrease, both among operating SMEs at the level of -2,3% and registered ones by -7,6% (see table).
Table. Comparison of number of SMEs in 2014-2015
|
|
By condition on 01.01.2015 |
By condition on 01.01.2016 |
Dynamics (decrease) |
|
Registered SMEs |
1 655 980 |
1 530 341 |
-7,6% (-125 639) |
|
Operating SMEs |
1 319 761 |
1 289 683 |
-2,3% (-30 |
The contribution of SMEs to the economy
Despite the large number of SMEs in Kazakhstan, big business brings the lion's share of the contribution to GDP of the country. So, in 2014 the share of large enterprises in GDP was 74%, SME – 26%, respectively.
For comparison, in the developed OECD countries, the share of SMEs in GDP is at the level of 50%. This suggests that the contribution of SMEs in the economy remains low, and the economy continues to depend on the activities of large companies, operating mainly in the commodity sectors of the economy.
By the end of 2015, the largest part of SMEs are concentrated in trade and construction, which is 24.7% and 14.2%, respectively, of the total number of existing SMEs.
Production by SMEs
Production by SMEs in January-September 2015 amounted to 10 558,8 billion tenge, including:
• small businesses entities - 6 601,7 billion tenge (62,5%),
• medium – 2 60.6 billion tenge (21,4%);
• individual entrepreneurs – 1 132.3 billion tenge (10.7 percent); and
• peasant (farmers) farms – 564 billion (5.3 percent).
In comparison with January-September 2014, output (in comparable prices) by SMEs increased to 0.7%.
SMEs employ 37% of the employed population of the Republic of Kazakhstan
Employment in SMEs increases every year. The number of jobs in SMEs in the first three quarters of 2015 was 3 214,9 thousand people, we can observe an increase of 6.3% compared to the corresponding period of last year. Employment in small business increased by 12.5% (1 108 thousand), medium-sized businesses – 12.9 percent (352 thousand).
Overall, 37% of the employed population in Kazakhstan is small and medium businesses.
Data was prepared by the Department for strategic analysis and development of NCE RK "Atameken"
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