Attractiveness and Difficulties of SMEs in Kazakhstan Economy

Abstract

Abstract:

Small and Medium Enterprises (SMEs) are the most important element of the market economy, which is vital for the development of countries. Today, SMEs largely determine the pace of economic growth, the structure and quality of gross national product. These enterprises are most sensitive to changing economic conditions and affect the stability and dynamism of the development of the state economy in the market environment. The role of SMEs in the global economy continues to increase dramatically. According to the United Nations, in general, small and medium-sized enterprises in the world employ almost 50% of the working population and produce 33-60% of national products and services. In the developing country of Kazakhstan, starting from the development plans, the importance of SMEs in terms of Kazakh economy in economic policies was underlined and some legal and institutional arrangements were made on this issue. Despite such efforts, there are a number of reasons preventing the development of SMEs operating in the country. When these reasons are analyzed; these reasons can be listed as non-compliance with tax laws, insufficient credit sources, formalities of tenders and excessive pressures of audit authorities. These reasons lead to the formation of unregistered enterprises and increase the registration of enterprises instead of the number of active enterprises. Therefore, the main purpose of this study is to identify the current situation of SMEs and their problems for the economic development of Kazakhstan and to propose new solutions for attractiveness.