Rural entrepreneurship: is there a real financial help?
Not less than 90% of small businesses, which have taken a loan at second-tier banks and non-bank microfinance institutions, credit unions, return funds in full and on time
Contrary to the existing myths about the high risk of investments in a small business, the experience of past years has shown that lending to small businesses with a skillful organization of work is less risky than lending to large enterprises, believe entrepreneurs of Osakarovsk district. However, still the majority of small businesses does not have access to financial and credit resources.
"Small business development is difficult, primarily due to lack of funding at the early stages of business development. Basically, in our area the main sources of financing of small and medium-sized businesses are their own savings, help from relatives or friends. Bank financing is not available to the vast majority of small businesses as well as to start-ups, as no liquid assets can be presented to the bank as a collateral, "- says the chairman of the SME Committee of the Branch of the Chamber Yerlan Ospanov.
According to him, leasing of technological equipment is hardly available, because of the low level of development of leasing operations, as well as the inability of the lessee to pay the first installment, constituting 20-30% of the cost of the equipment.
"The role of the leadership of districts, in general, throughout its system should be aimed at inclusion of investments in the area of investment, assisting in the availability of cheap loans. But we, the local entrepreneurs, do not see it. Yes, we have held meetings with financial institutions on various loan programs, but when an entrepreneur applies for a loan he faces challenges. And in the end, out of 100 who want to get credit units ", - says E. Ospanov.
For example, JSC "Food Corporation" - one of the financial institutions that issue loans for spring field work with the repayment under 5-6% per annum by the forward purchase of grain. The annual analysis of the issuance of such loans showed a decline both in the district and throughout the Karaganda region. The reason - lack of collateral liquid assets under the guarantee of SEC "Saryarka", which put further demands on the remuneration rate of 2% this year.
As the chairman of the SME Committee, akimat of Osakarovsk district to support its own agricultural producers approached several times with the application for granting a loan for such a program, although management of SEC "Saryarka" assures employers that in the case of a guarantee by the akimat of the district, the issue of distribution of loans to district businesses can be solved positively. As a result, the unused money went to in other regions.
The local authorities also ignored the meeting of LLP "Credit association" Sarybel", which today is one of the best micro-credit organizations in the district to include 62 farms. Farmers are outraged that the leadership of the local executive bodies have never attended the meeting, not listening to concerns of the participants, does not intend to offer assistance in the implementation of existing programs, in particular, to organize assistance in the meeting of the board of the credit partnerships to involve new participants in the livestock and crop production programs. Positive work of credit partnership - is also an indication of the district, say businessmen.
It is difficult to get money through Fund "Damu", out 4 applicants for a loan only obtained the loan, say entrepreneurs.
"People complain a lot on the" People's Bank" - the only bank the offices of which are in our area. The procedure for obtaining a loan or opening an account is complicated, the bank managers often require to provide a pile of papers. To open an account in the National Bank, you must submit a charter to LLP, which was canceled three years ago during registration of a legal entity, and other banks do not require such documents. I think justice management with management of the bank and other financial institutions need clarification of the current legislation on the registration of legal entities", - said E. Ospanov.
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