ASSESSMENT OF THE FACTORS LIMITING GROWTH OF MEDIUM-SIZED BUSINESSES IN KAZAKHSTAN

Abstract

With the growth of entrepreneurship globally and its potential gains to the economy and society, governments are focusing efforts on creating the fertile ground for their talents to innovate, grow and flourish. Acknowledging the fact that entrepreneurial activity is no one’s priority, state policies and programs aim to foster entrepreneurial culture by easing the burden on business creation and facilitating a supportive environment. Kazakhstan’s policy priorities for entrepreneurship development have been on the agenda of the government over the twenty years with major focus on advancement of the institutional context. Progress in the development of small and medium sized enterprises (SMEs) in the last decenniums has not yet produced results that would allow Kazakhstan to fully benefit from SMEs contribution to employment and economic growth. Statistics on SME performance and their contribution towards GDP falling below the national targets reflects the necessity of further research in quest for the future success of SMEs. This is particularly relevant with the trend in declining number of medium-sized enterprises despite the state efforts to increase their share of contribution to the country's GDP. The thrust of this research, then, is to examine the factors limiting the growth of small enterprises and enhance recognition of the importance of medium-sized businesses that is currently undervalued in state policies.