A. Reasons for undertaking research.
At the times of Soviet Union, there wasn’t not only small or middle
business, there was not any business at all, everything was public and
there was no owners; so all countries of ex-Soviet Union have to develop
their small enterprises intensively. For Kazakhstan, it was very
difficult, mainly because Kazakhstan had more mineral industry and a
little of agriculture, for the most part - grain. Processing industry
was very weak. When USSR broke up and young Kazakhstan had to care about
itself, enterprises needed huge amounts of money to buy necessary
equipment, employ qualified workers to work in mineral industry and to
develop processing industry, which demand, by the way, more expenses.
However, firstly, government and banks did not have enough money to give
credits to the enterprises and secondly, it was much easier to create
monopoly. Thus, our system of supporting small business was not correct
from the very beginning. But still, 10 years later when it seems that
Kazakhstan had grown roots and almost everything going rather well, our
system of supporting small business in a bad condition (see Appendix 1).
There are several reasons why our small business develops very slowly.
Firstly, there was not any optimal government strategy it support small
business. Government did not reveal the appropriate branch and regional
priorities for small business. Secondly, another problem is corruption.
As we know, officials can build huge barriers before entrepreneurs, for
example, different checks, problems with registration, and others.
Thirdly, a high taxes on enterprises.
Small enterprises pay more taxes than big ones. This system of taxation
should be more fair, because for small enterprises there is no stimulus
not to develop, but even to conduct their own business. Lastly, in our
country there is no appropriate lending system. Banks do not want to
credit small business, because there is more probability that business
won’t go well, also there is big problems arises with preparing
necessary documents in order to receive a credit, another problem is
liquid enough pledge. So we can see, that enterprises collide with many
problems when they are trying to receive a credit.
What for our country should support small business? Small business
creates new workplaces, form middle class, develop trade and production.
If we would not develop small business, there will be no competitive
market, thus there will be no improvements in our market, in products
and services. So, we should develop small business in Kazakhstan to
build up our economy, particularly we should improve our crediting
system of small enterprises, because small firms have to develop
themselves, but they can not do that without money. Thus, our research
problem is with which problems small business meets, when it is trying
to receive a credit.
B. Research structure.
Our research structure:
Necessity to credit small business. In this chapter, we will tell you
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