Theme 11. State support of entrepreneurship and its infrastructure
Questions:
1. State support of entrepreneurship in Kazakhstan
2. Infrastructure of state support of entrepreneurship
1. State support of entrepreneurship in Kazakhstan
Government support for entrepreneurship is a key instrument in stimulating economic growth, job creation, and fostering innovation in Kazakhstan. Since gaining independence in 1991, Kazakhstan has actively developed and implemented measures to support small and medium-sized enterprises (SMEs), recognizing them as engines of economic development. This extensive research report provides an overview of the state’s entrepreneurship support measures in Kazakhstan, covering its history, current status, and future strategies, while also evaluating their impact on the country’s economy.
History of Entrepreneurship Support in Kazakhstan
Transition to a Market Economy: Following the dissolution of the Soviet Union, Kazakhstan faced the necessity of transitioning from a planned to a market economy. During this period, the government began developing initial support measures for entrepreneurs, including tax incentives and subsidies for small and medium-sized enterprises.
Entrepreneurship Stimulus Programs: In the late 1990s and early 2000s, the Kazakhstan government implemented a series of programs aimed at fostering the development of small and medium-sized businesses. These programs encompassed financial support, training and consultations, as well as the establishment of specialized innovation clusters.
Creation of the “Damu” National Fund: In 2003, the government established the “Damu” National Fund for the Support of Small Business, becoming the primary institute for providing financial assistance to small and medium-sized enterprises in the country. The fund offers loans, grants, and guarantees for startups and companies across various sectors.
“Business Roadmap 2025” Program: Presently, one of the key entrepreneurship support programs is the “Business Roadmap 2025.” This ambitious strategy aims to ensure stable economic growth through the development of entrepreneurship in various industries.
Financial Support: Kazakhstan continues to provide financial assistance to entrepreneurs through the “Damu” Fund and other state institutions. Low-interest loans, investment grants, and subsidies enable companies to access the necessary capital for innovation and growth.
Development of Technoparks and Innovation Clusters: The government actively invests in the development of technoparks and innovation clusters, bringing together talented entrepreneurs, scientific research, and investors in one place. This fosters knowledge exchange, the creation of new technologies, and enhances the competitiveness of local businesses.
Streamlining Bureaucratic Procedures: In recent years, the government has taken steps to simplify bureaucratic procedures and reduce administrative barriers for businesses. This allows entrepreneurs to launch and develop their businesses more swiftly.
Partnership with International Organizations: Kazakhstan also actively collaborates with international organizations, such as the World Bank and the European Bank for Reconstruction and Development, in the development and implementation of entrepreneurship support programs.
Impact of Entrepreneurship Support on Kazakhstan’s Economy
Economic Growth: Government support for entrepreneurship plays a crucial role in stimulating Kazakhstan’s economic growth. Small and medium-sized enterprises represent a significant source of new jobs and contribute to the development of various economic sectors.
Innovation and Technological Progress: Support for innovation fosters the development of new technologies and products. Kazakhstan becomes an attractive destination for investors and foreign companies seeking new markets and technological solutions.
Facilitating Small and Medium-Sized Businesses: Government support helps entrepreneurs develop their businesses, overcoming challenges related to financing and administrative procedures. This contributes to the increased competitiveness of small and medium-sized enterprises.
Government support for entrepreneurship is a critical factor in stimulating economic growth, fostering innovation, and creating new job opportunities. The provision of access to financing, education, and technical support enables small and medium-sized enterprises to thrive and succeed. Effective entrepreneurship support infrastructure requires partnerships between businesses, the government, and academic institutions. Such collaboration concentrates resources and creates a conducive environment for entrepreneurial activity.
2. Infrastructure of state support of entrepreneurship
In 2003, the government of Kazakhstan established the National Fund for the Support of Small Entrepreneurship, “Damu,” which became the primary institute for providing financial assistance to small and medium-sized businesses in the country. The Fund offers loans, grants, and guarantees to startups and enterprises in various industries. A successful project supported by the “Damu” Fund could be an innovative startup company in the technology sector, which received funding to develop a new product and expand its business.
The government of Kazakhstan actively invests in the development of technoparks and innovation clusters, bringing together talented entrepreneurs, scientific research, and investors in one place. This fosters knowledge exchange, the creation of new technologies, and enhances the competitiveness of local companies. A prime example of a successful innovation platform is “Astana Hub,” a technopark located in the capital city of Kazakhstan, attracting startups from various fields such as artificial intelligence, blockchain, and innovative materials.
Kazakhstan aims to become a technological leader in Central Asia and thus actively invests in the development of technoparks. These innovative oases, spread across the country, play a crucial role in the creation and dissemination of new technologies, stimulating entrepreneurship, and attracting global investors. The activities of technoparks in Kazakhstan shed light on the technological future of the country.
Incubators of Innovation: Objectives and Structure of Technoparks
Technoparks are specialized technological clusters that provide entrepreneurs and startups not only with modern infrastructure and equipment but also with opportunities for interaction with research centers, universities, and government organizations. The main goal of technoparks is to support the development, commercialization, and implementation of innovative technologies in industries and society.
The structure of technoparks comprises concentrated spaces for various industries such as information technology, biotechnology, green energy, artificial intelligence, and others. These spaces foster intensive knowledge exchange and collaboration among participants and attract scientific experts and investors from different countries.
Technoparks: Engines of Innovation
Technoparks in Kazakhstan have become a source of enormous potential for the development of the national economy. They contribute to the creation of new jobs, improvement of education, and the development of human resources in the technology sector. Prominent technoparks like “Astana Hub” in the capital city of Kazakhstan and “Halyk Arena Technopark” in Almaty play a crucial role in attracting young entrepreneurs, scientists, and engineers, as well as facilitating the commercialization of ideas.
One successful example is a company founded within a technopark. A team of young engineers and programmers developed a unique software product to address complex challenges in the oil and gas industry. The startup received financing from the technopark and successfully implemented its solutions in the market.
Global Integration: International Cooperation
Technoparks in Kazakhstan actively collaborate with international partners and innovation clusters worldwide. Such cooperation provides access to advanced technologies, investments, and the global market. An example would be the collaboration between Kazakhstan’s technoparks and those in China and Singapore, which attracts foreign investors and facilitates technical exchange.
Incubators for Success: Support for Startups
Technoparks in Kazakhstan also offer incubation services for startups. Support in the form of consulting, training, and financing enables young entrepreneurs to overcome obstacles and realize their innovative ideas. A successful example could be a startup company in the medical technology sector, which received assistance from the technopark in developing a business strategy and securing a grant for further development.
Innovation Ecosystem: An Open Path to Success
Technoparks in Kazakhstan are becoming real innovation ecosystems. Here, ideas grow and flourish, connections between participants transform into partnerships, and open dialogue allows for the implementation of cutting-edge technologies and success in the global market.
In 2003, the Kazakhstani government established the National Fund for the Support of Small Entrepreneurship, known as “Damu,” which has since become a key institution for providing financial assistance to small and medium-sized businesses in the country. The Fund offers loans, grants, and guarantees to startups and enterprises operating in various industries. A notable example of a successful project supported by the “Damu” Fund could be an innovative startup company in the technology sector that received funding to develop a new product and expand its business operations.
The government of Kazakhstan has shown a proactive commitment to investing in the development of technoparks and innovation clusters, which serve as focal points for gathering talented entrepreneurs, conducting scientific research, and attracting investors. The consolidation of these elements within technoparks fosters knowledge exchange, promotes the creation of novel technologies, and ultimately bolsters the competitive edge of local companies. An exemplar of a thriving innovation platform is “Astana Hub,” a technopark situated in the capital city of Kazakhstan, which attracts startups from diverse fields like artificial intelligence, blockchain, and innovative materials.
In its quest to position itself as a technological leader in Central Asia, Kazakhstan continues to make substantial investments in the advancement of technoparks. These innovative enclaves, scattered throughout the nation, play an instrumental role in conceiving and disseminating novel technologies, invigorating entrepreneurship, and attracting global investors. The endeavors of technoparks in Kazakhstan offer a glimpse into the technological trajectory of the country.
Incubators of Innovation: Objectives and Structure of Technoparks
Technoparks function as specialized technological clusters that furnish entrepreneurs and startups not only with contemporary infrastructure and equipment but also with opportunities for engaging with research centers, universities, and governmental institutions. The principal aim of technoparks revolves around supporting the development, commercialization, and implementation of pioneering technologies across various industries and society at large.
The structural blueprint of technoparks comprises compact and consolidated spaces catering to a spectrum of industries, including information technology, biotechnology, green energy, artificial intelligence, and others. Within these spaces, there is a conducive atmosphere for the intensive exchange of knowledge, facilitating collaborations among participants, and attracting scientific experts and investors from diverse corners of the globe.
Technoparks: Engines of Innovation
Technoparks in Kazakhstan have emerged as potent reservoirs of untapped potential that foster the growth of the national economy. They contribute to the generation of fresh employment opportunities, improvements in education, and the cultivation of a skilled workforce within the technology sector. Prominent technoparks such as “Astana Hub” in the capital city of Kazakhstan and “Halyk Arena Technopark” in Almaty play a pivotal role in attracting young entrepreneurs, scientists, and engineers, while also facilitating the successful commercialization of groundbreaking ideas.
An exemple of a success story is a company founded within the confines of a technopark. A cadre of young engineers and programmers hatched a unique software product to address complex challenges encountered in the oil and gas industry. With financial backing from the technopark, the startup effectively implemented its solutions in the market.
Global Integration: International Collaboration
Technoparks in Kazakhstan actively collaborate with international partners and innovation clusters across the globe. Such collaboration opens up avenues for accessing cutting-edge technologies, investments, and the global marketplace. An illustrative instance of this international cooperation lies in the partnerships forged between Kazakhstan’s technoparks and those based in China and Singapore, which facilitate the influx of foreign investments and foster technical exchanges.
Incubators for Success: Support for Startups
Technoparks in Kazakhstan also play a crucial role as incubators for startups. The provision of support in the form of consulting, training, and financing enables budding entrepreneurs to overcome obstacles and bring their innovative ideas to fruition. A noteworthy example could be a startup in the medical technology sector that received assistance from the technopark in formulating a robust business strategy and securing a grant for further development.
Innovation Ecosystem: Embracing an Open Path to Success
Technoparks in Kazakhstan are evolving into thriving innovation ecosystems. Within these environments, ideas are nurtured and flourish, connections between participants metamorphose into fruitful partnerships, and open dialogues facilitate the incorporation of cutting-edge technologies, all of which contribute to success in the global market.
Task: Case-study
Examine successful examples of start-ups or small businesses that have received significant government support and achieved success. Analyze what kind of support was provided to these companies and how it influenced their development and growth. Formulate recommendations for other entrepreneurs on how to utilize government support in their businesses.
Discussion Questions for the Classroom:
1. What is the role of the state in stimulating innovation and fostering startup development through government support? What measures are taken to support entrepreneurs engaged in emerging technologies?
2. What mechanisms ensure transparency and accessibility of governmental entrepreneurship support? How can information dissemination and program accessibility be improved?
3. How does state support for entrepreneurship impact economic growth and employment within a country? Are there any research studies confirming the effectiveness of these measures?
4. How does the government strike a balance between supporting startups and safeguarding the interests of traditional enterprises and industries? What challenges and contradictions arise during the implementation of such programs?
