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Ghani Tasmaganbetov: "For three years, we have defended the rights of businessmen in the amount of more than 3 billion tenge"

- City of Astana
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Every year several hundreds of small, medium and large businesses address to the metropolitan Chamber of entrepreneurs.

Questions are very different. During the three years experts considered more 700 problematic business issues, of which 324 were positively resolved - in favor of entrepreneurs.

The director of the Metropolitan Chamber of entrepreneurs Ghani Tasmaganbetov speaks more about this and other key outcomes of the three year work:

- Today Astana is the fastest growing city in Kazakhstan. Trade, service sector, manufacturing and construction industries develop actively in the capital. There is an annual increase in the number of businesses. At the beginning of this year 108 146 businesses were registered in the capital or 931 more than in 2015.

Since the beginning of this year, we reviewed more than 140 problematic issues of entrepreneurs, 42 of them were positively resolved, business rights in the amount of more than 1.9 billion tenge were reserved.

- Gani Mergalievich what work is carried out by the Chamber of entrepreneurs of Astana city to improve the business climate in the capital of Kazakhstan?

- Since its establishment the Chamber of Entrepreneurs represents business interests at all dialogue platforms of the capital, our representatives are members 21 key advisory bodies of the city: the public council under the prosecutor's office in Astana, the land commission, the commissions on privatization of property, commission on tax administration, regional coordination Council on industrial-innovative development and others. This year we were included in the composition of the Public Council of Astana.

In order to resolve effectively the task on protection of the rights and legitimate interests of entrepreneurs of Astana city, as well as public review of problematic issues of business development under the city Chamber of entrepreneurs from December 2013 was estalished the Council on protection of the rights of entrepreneurs. It is composed of representatives of the prosecutor's office of the capital, the City Department of the Agency for Civil Service Affairs and Anti-Corruption, as well as representatives of leading business associations, prominent lawyers and legal scholars and public figures. During the Council meeting were discussed the most topical issues related to the violation of the rights of entrepreneurs, systemic problems of legislation and law enforcement practice. Since 2013 there were held 15 meetings of the Council to protect the rights of entrepreneurs in the course of which were considered 34 problematic issues of business entities, of which 28 were resolved positively.

Over three years, we have identified more than 100 administrative barriers, of which a large part is at the local level. If we talk about the areas, most of them occur in the field of land relations and construction.

In order to identify and to reduce administrative barriers, affecting business interests in the city of Astana, we have created a special working group, which meets weekly under the direction of first deputy akim of Astana city Sergey Khoroshun.

During the existence of the working group, we addressed these significant administrative barriers, as a lack of unified rules of building settlements, a limited number of trading places on the streets and in the parks of the capital and the types of products sold, the absence of rules on the procedure and conditions for the placement of outdoor (visual) advertising in the capital, the development of which is provided by the law of RK "on the status of the capital of the Republic of Kazakhstan", the lack of publicly available information on free land plots, which are currently posted on the website www.saulet.astana.kz in the form of an interactive map. This map contains a scheme of the master plan with information about the current engineering networks, registered land plots, projects of detailed planning of the city.

Identification and elimination of administrative barriers is ongoing. Including at the national level. The National Chamber of Entrepreneurs of Kazakhstan "Atameken" runs a corresponding registry of business problems, which is formed on the basis of proposals of the regional Chambers.

On our part, we have submitted 30 problematic issues for inclusion in the Registry. Currently, four of them were resolved. Other issues are still under consideration.

- Everybody knows that the Chamber suggested Akimat the project "1000 trading places". Tell us about it, and at what stage is its implementation?

- In 2015 Akimat of Astana has identified 276 locations for street vendors and only for 3 types of products. The Chamber started to receive appeals from  entrepreneurs with the request  to increase the number of places for street trading. Given the importance of this issue, the Chamber addressed to the Akim of the capital with the initiative to increase the number of retail locations and types of products under the street trading. Akim supported this initiative.

Akimat of the capital has determined that two commissions will be engaged in distribution of places: one - street trading (operator - JSC "SEC" Astana "), the other – parks of the city (operator – Municipal Utility Service on the right of economic management  " Fund of municipal property of Astana city").

As a result the metropolitan Akimat determined approximately 1,000 retail locations for street trading, increasing the number of types of sold products.

Distinctive features of the new mechanism proposed by the Chamber, to the previously existing is that representatives of relevant government agencies, businesses and the Chamber are in the composition of the commission on distribution of trading places.

The Commission when considering applications follow the procedures for distribution of trading places, which were also designed with our participation.

The package of documents is minimum. Commercial space on the streets of the capital will be leased for up to 7 years before the term was one year. This advantage will allow businessmen to invest the necessary funds in their businesses, without fear of the end of the lease term. The rental price is minimum as it will cover only administrative maintenance costs.

In early February the deadline for acceptance of application was completed for 500 land plots of 1,000. There were submitted about 1800 applications. Applications were accepted at the Centers for servicing entrepreneurs. However, these applications were all rejected by metropolitan Akimat because of non-compliance with the requirements.

In this regard, from 20th of April to 4th of May 2016 was held a regular reception of applications for participation in the competition. According to our information, there submitted about 2,200 applications for 558 locations. Applications are accepted this time online via the web-site smart.astana.kz. Now the consideration of these applications is completed. The Commission sums up the results.

In addition, from 21st of May to 5th of June of this year will be held the next stage of receiving applications for 282 trading places. Information about the number of applications is formed by the metropolitan Akimat now. Unclaimed market places will be distributed at the following stages of the competition.

With regard to the land in the city's parks for placing children's attractions and shopping facilities, applications were accepted until March 31, 2016. For 187 locations were submitted 502 applications of entrepreneurs. The competition was held by the commission of the Fund of municipal property with participation of representatives of public associations, businesses and the Chamber.

The use of the new mechanism will increase the trust of entrepreneurs to the Akimat in terms of transparency and openness in the process of obtaining trade places, as well as increase the number of small businesses in this area, which in turn will lead to the creation of new jobs, increased tax revenues to the local budget.

- Gani Mergalievich, what kind of work is carried out by the Chamber in connection with the forthcoming exhibition "EXPO-2017"?

- The Chamber of entrepreneurs of Astana is in the composition of the committee and the working group in conjunction with the Department for Investment and Development of Astana, "Astana Convention Bureau" and JSC "National Company "Astana EXPO-2017" participated in the development of criteria and quality assessment for the program “Recommended by EXPO-2017".

This program involves the assessment of catering and hotel stock of the capital, as well as their classification by categories of partnership. During the evaluation weaknesses are identified in the service sector and there were made recommendations for their improvement, there is a register of staff who need to improve their qualifications. As a result of assessment of the level of provided service, the title, such as "Astana Gold Partner" is awarded.

Official partners of the program receive privileges such as placement of their brand on the website of the metroplitan akimat, JSC "National Company "Astana EXPO-2017", "Astana Convention Bureau", priority placement in kiosks of airports and railway stations information material for tourists and in pedestrian navigation systems.

With participation of the Chamber of entrepreneurs of Astana we developed requirements for hostels, tour guides, passenger transportation services, and companies that provide transportation services, apartments, travel agencies, and new members are involved in the program – enterprises of the service industry and office space of the format "coworking".

We understand that there is still a lot of work in connection with the upcoming exhibition "EXPO-2017", so under the Chamber in 2016 was establishe a working group on development of internal and external tourism. This interactive platform will allow both local executive bodies and the enterprises of the tourism industry to improve quality of services and standards, which is important on the eve of "Expo-2017".

- Now many people want to start their business. Tell me, what kind of assistance can budding and young entrepreneurs expect?

- For these purposes, the Chamber of entrepreneurs of Astana created the Center of Business Services (CBS), where you can get absolutely free consulting support not only for current, but also start-up entrepreneurs. Consultations are available on accounting, legal and customs issues in the field of marketing (including writing business plans), management, procurement, quality management standards and IT-support, including the creation of sites.

During the implementation of service support for business in Astana, Centre for Servicing Entrepreneurs has served more then 2.3 thousand clients, the total number of services rendered amounts to more than 3.7 thousand.

To increase the level of knowledge of the law and the foundations of business, SMEs can undergo free training under the project "Business School", which is implemented under the fourth direction of the program "Business Road Map 2020" - "Strengthening of the entrepreneurial potential".

"Business School" provides several courses for entrepreneurs. The first stage - "Business Advisor" - is designed for beginning SMEs, classes are held in interactive mode with the discussion of practical situations and exercises. Graduates of the course "Business Advisor" can enhance their knowledge on the course "Business Growth", where suggest classes on the functional knowledge on running and development of business. The third stage is project learning with application of mentoring principles. The people, who undergone training within the first two stages are selected and assembled in groups by categories and projects. Aspiring entrepreneurs are provided with a choice of several small projects that can be implemented in the region. Projects are specially designed and suggested in the business directory, made by the Chamber, "100 projects for small business".

In addition to these measures of non-financial support, the additional funds are allocated to support start-ups. This year will be allocated additional funding in the amount of 2 billion for metropolitan start-ups in the framework of the Memorandum signed in Astana between the city Akimat and the Fund "Damu". This measure for support of start-up business is a novelty and is being implemented only in the capital.

The decision on introduction of a new program to support start-up projects was announced by Akim of the capital Adilbek Dzhaksybekov at the beginning of March during the third conference of businessmen of Astana with the participation of the Chairman of the Presidium of NCE RK "Atameken" Timur Kulibayev.

The funds will be used to support small and medium-sized businesses in various sectors of the economy through banks of the second level and a special commission. We, the regional Chamber of entrepreneurs, are given the opportunity to select the projects, to give recommendations on them. I think there will be many volunteers within this direction, as often start-up businesses are faced with a barrier when it comes to financing of projects. In fact, it is difficult to obtain financing in banks for start-up projects, basically, banks support those who already have a business, cash flows, may leave a deposit. This is a problem for start-ups. So now, thanks to the support of Akimat, these funds will be in great demand, and volunteers can take part in it.

According to the new project of support for metropolitan start-ups, the maximum loan amount can be up to 50 million tenge. Interest rate is 7.9% per annum, the loan term is up to 7 years.

I note that Astana leads in innovation in the field of business support. Prior to this, funds were allocated to support youth entrepreneurship ZhasStarT and targeted lending in the sphere of trade in the amount of 600 million and 1.6 billion tenge, respectively. Funds were disbursed in full. This year, another 300 million will be allocated in addition to this program.

- Gani Mergalievich, you note that the number of entrepreneurs in the capital increased. This means that the number of goods which need to be sold at the market increases. How do you support domestic producers in this matter?

- This year, the Chamber of entrepreneurs of Astana organized by the Commission for monitoring of local content under the Akimat of the capital, as well as the major subsidiaries of the company "National Welfare Fund "Samruk-Kazyna". The purpose of the commission is to ensure interaction between quasi-public sector organizations, and domestic producers. As part of the formed eight sectoral committees under the Chamber, the exchange of views on the matter is being done, support measures for domestic producers are being discussed and to develop concrete proposals and recommendations to increase the proportion of local content in the procurement, long-term contracts between domestic producers and procurement operators and to ensure thereby maximum load of Kazakhstani producers’ capacities.

Today was announced public procurement amounting to more than 152 billion tenge, and procurement within the project "Astana LRT” in the amount of 684 billion tenge.

Also, as you know, in order to support domestic producers, on 19th of  May 2016 was signed an agreement on cooperation between the National Chamber of Entrepreneurs of Kazakhstan "Atameken" and the major subsidiaries of the company "National Welfare Fund" Samruk-Kazyna ".

In addition, for the second year, the Chamber of entrepreneurs of Astana with the support of NCE RK "Atameken" organizes and conducts the Republican contest-exhibition "Best Product of Kazakhstan" and the competition for the prize of the President of the Republic of Kazakhstan "Altyn Sapa".

Organizations of various forms of ownership can participate in the contests, engaged in the production of goods and provision of services on the territory of the Republic of Kazakhstan. Similar competitions contribute to the saturation of the market with high-quality and competitive products.

- Very often, Kazakh businesses raise the question of deficiency of technical and professional staff. What specialties are in most demand today and how to solve the problem with their training in the required scale?

- Yes, indeed, in recent years, the business of Astana was faced with an acute shortage of technical specialists in almost all sectors. It arose as a result of loss of communication of technical and vocational education institutions with production enterprises, which has ceased to participate in development programs and in the educational process.

Partially, it is the problem of imperfection of RLAs in education: there is no single clear mechanism for implementation of the dual training, which should be mandatory for all participating parties, for example, an order for the sector of education is optional for manufacturers, and cancellation of many sectoral regulations is required.

Now, for instance, employers experience difficulties in finding and hiring workers of the following profile: plasterers, plumbers, circuit installers, fitters, welder and others.

In February and March of this year, the Chamber of entrepreneurs of Astana city conducted a survey of the short-term staffing needs of employers at the request of NCE RK "Atameken" and the Information and Analytical Center for Employment of the Ministry of Health and Social Development of the Republic of Kazakhstan. Our findings are reflected in the research "the system of early warning for 2016".

We further surveyed enterprises and organizations of Astana in order to identify their needs in specialists –graduates of colleges – to place a state educational order with organizations of technical and vocational education as a part of participation of RCE in the work of the Commission on placement of the state educational order for training to the technical, post-secondary education, the composition of which is approved by the authorized and local executive bodies.

On the basis of the data of "the system of early warning for 2016" and needs (order) of enterprises, on 5th of May this year, the Commission has worked on the final placement of the state educational order from the local budget for 2016. 4,000 grants were distributed in between the colleges of the city.

In order to prepare highly skilled workers of technical and service labor at Colleges with the qualifications that meet the requirements of employers, the Chamber of entrepreneurs is involved in the implementation of the dual training. With our assistance in 2016 were concluded quadripartite agreements within the dual system of education with 17 colleges, 27 management companies and Department of education for training of 1141 students in 19 specialties.

With the participation of the Chamber on the basis of trade and economic college Kazpotrebsoyuz, construction and technical college were established and successfully operate training and resource centers, respectively, to train to labour occupations, "the cashier of the sales area", "master of finishing construction works", "master of carpenter and furniture production "," plumber "and others.

The Chamber plans to open resource and training centers in 2016 on the bases of the technical college, LLP "Elorda askhanasy", LLP "Central Accounting House" and "Centre of Excellence schools, colleges, employees and medical staff," for training at short courses, “Electrician for Elevators”, “machine operator”, "electrician of contact network".

Together with the Employment Centre, we intend to include the above training and resource centers in 2016 in the list of training organizations, offering professional training in the framework of the program "Employment Road Map-2020".


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