At an enlarged meeting of the Government in September this year the President of Kazakhstan Nursultan Nazarbayev gave a number of specific tasks to ensure economic growth. One of the main tasks is stimulation of mass entrepreneurship and employment. There were also given orders for the development of agro-industrial complex, in particular, agricultural cooperation, as well as diversification of export potential.

According to the Chairman of the Presidium of the National Chamber of Entrepreneurs of Kazakhstan "Atameken" Timur Kulibayev, for the implementation of the tasks, set by the Head of State, NCE has developed 10 priority steps for business development.

Step 1. Microcredit – is the fastest and most efficient means for SMEs.

Currently, micro-loans are provided within the program "Business Road Map - 2020", "Employment Road Map - 2020" and instruments of the holding "KazAgro". In spite of the favorable financial conditions of these programs, entrepreneurs are faced with the problems of collateral, a large number of required documents and the lack of support for the project. For example, to obtain microcredit within “BRM – 2020”, an entrepreneur must submit 13 documents.

An analysis of the situation in the micro-credit market has shown that, on the one hand, there is low coverage of rural areas, on the other - for the majority of budding entrepreneurs micro-loans are not available due to the high interest rates (an average of 40% per annum). In this regard, since the beginning of this year NCE "Atameken" through attraction of private investments and local budgets launched the microcredit program in five pilot regions: Almaty, Aktobe, Kyzylorda, Kostanay and Mangystau.

A key advantage of the microcredit program of NCE RK "Atameken" is collateral flexibility, provision of guarantees, support of business projects of entrepreneurs, training prior to their implementation, the possibility of co-operation and direct marketing. Microloans are issued in the amount of up to 15 million tenge at 6% per annum for up to 5 years without sectoral restrictions. At the same time, to obtain microcredit, an entrepreneur must provide 5-6 documents. The microcredit program of NCE "Atameken” has a broad coverage, including at the regional level.

Currently, 365 applications for a total of 1 942 million tenge were received at the five pilot regions of the microcredit program. 185 projects received funding in the amount of 825 million tenge. It is proposed withn the first step to apply the experience of microcredit program of NCE "Atameken" for Roadmap of Business - 2020, Roadmap of Employment 2020, instruments of NMH "KazAgro". In this case NCE could act as one operator in the service part of the micro-credit for all state programs.

Step 2. Largescale business training.

The existing format of business training format is inefficient and formal. Within the framework of the implementation of effective measures to provide employment, to reduce social tensions, and development of entrepreneurship in the regions, "Atameken", with the support of the Government of the Republic of Kazakhstan has completed two pilot projects – “Bastau Business" and "Bastau Kasіp" in Munaily District of the Mangistau region. The project of online training "Atameken Business Academy" is at the stage of implementation and a methodological training center for business coaches is being created.

Given the efficiency of the projects, their flexibility and adaptability under the requests of students, as well as the presence of the element of support of business projects, it is proposed to cascade it to all regions of the country. Their inclusion would be a logical and rational as instruments of non-financial support of business in a single business support and development program "Roadmap of Business-2020". It is worth emphasizing that all trainings of NCE RK "Atameken" will be linked to the micro-credit system.

Mini industrial zones (MIZ) can create an opportunity to start a business on the basis of special training, under which SMEs of one profile will operating one zone (for example, all the sewing production). The common name of the program – is "City of Masters". 20 to 60 companies will be located at a MIZ of ​​1-2 hectares. Experience of Poland and Turkey shows that such business incubators with the necessary basic infrastructure has become a major form of support for small industrial enterprises and emerging producers. These tools help them to survive and to grow in the starting period when they are most vulnerable from the financial point of view.

It is proposed to allocate funds within the framework of state programs to construct in all regions small industrial zones in the form of industrial buildings with engineering networks, which will be granted under the terms of the lease to small manufacturing enterprises.

Step 3. Agricultural cooperation is in priority.

One of the problems hindering the development of agro-industrial complex is small-scale of production. To resolve this issue in October 2015 was adopted the Law "On agricultural cooperatives", a joint plan of NCE and the Ministry of Agriculture on creation of 10 pilot cooperatives is being in progress. NCE RK is implementing the program "200 agricultural cooperatives with NCE "Atameken". Currently, we accompany by more than 283 agricultural cooperatives, which bring together about 7 thousand peasants / farmers and private household farms.

However, agricultural producers, enlarged in the form of agricultural cooperatives, are faced with the problem of lack of access to cheap long money. To solve the problems of access to finance, it is proposed to identify as a priority of the microcredit program the private household farms, united in cooperatives, and also to introduce a new product concessional lending through JSC "NMH" KazAgro".

Analysis of the chain of value-added products has shown that due to the absence of direct marketing system, the product price increases to 20-40%. In this regard, it is proposed to adopt a three-step approach for the development of trade between the networks, and agricultural cooperatives. First of all, the amalgamation of farmers into cooperatives with the deepening of specialization of production and direct trade with the networks. Second, implementation of the concept of the pilot Wholesale and Distribution Center (WDC) for the organization of refinement, packaging, storage, transportation and marketing of agricultural products, appropriate phyto-sanitary and veterinary control, effective inter-regional redistribution. Third, the formation of an effective network of WDC for the distribution of products flows between regions and export to foreign markets, with the integration in similar networks of neighboring countries.

Step 4: Local content - relevant.

In the current economic conditions, it is important to stimulate demand for the products of domestic production. A key role in this process is played by the goods of daily, constant demand through public procurement, procurements of quasi-public sector and subsoil companies. The annual consumption of consumer goods (clothing, footwear, food, furniture) is about 1.9 trillion. tenge. At the same time, the overall share of consumer goods of daily demand of domestic production does not exceed an average of 30%. In this regard, it is necessary to take measures to improve the competitiveness of domestic producers by increasing the share of local content at the expense of long-term contracts and the provision of state support in exchange for the localization of production.

One of the mechanisms to stimulate demand for domestic products is the centralized public procurement system. For example, in the US there is a US State Order Office (Contract office) that makes all the purchases in the form of long-term government contracts. The Government of the United States shares with producers the risks and benefits of technology projects by participating in promising developments from their initial stage to testing advanced product samples. Furthermore, the state contract for goods and services is taken by US commercial banks as collateral for the loan.

NCE proposes to establish on the basis of JSC "National Agency for Local Content Development NADLoC" a central office of the state order on the US experience under the trust management of NCE "Atameken". In turn, the selection of entrepreneurs to obtain comprehensive measures of state support and long-term contract must be based on clear requirements: the existence of the certificate and the industrial strategy of the further localization of production, the introduction of advanced technologies and innovations for future release on exports within 2-5 years . Thus, support for entrepreneurs at the expense of domestic demand will be linked with the program of export development.

Step 5. SMEs – are a key driver of economic growth.

Slowing economic development encourages us to search for new growth drivers. If for decades the country's economy was dependent on the big companies, now we need to change our paradigm towards small and medium-sized businesses. In particular, we need to pay attention to the export-oriented enterprises, which could realize their potential in the vast markets of China, Russia and Iran.

According to preliminary estimates, only in the short term export revenues from the sale of agricultural products can be increased by more than 2 times, i.e., to 1.7 trillion tenge, which will give Kazakhstan the opportunity to enter the top ten exporting countries. So, you can actually increase the production of vegetable oils 4-5 times (up to 2 million tons); beef - 2 times (.. from 400 thousand tons to 800 thousand tons, of which it is possible to export 300-400 thousand tons); lamb meat - from 160 thousand tons to 300 thousand tons, 50% of which can be exported.

The sector of small and medium-sized business also has its own internal problems. For example, in developed countries, the contribution of SMEs to export is ten times higher than indicators of Kazakhstan and ranges from 25 to 50%. This is due to the fact that majority of the businessmen of the country are engaged in the trade sector, as in other advanced countries, on the contrary, they are the producers. For example, in Poland 93% of SMEs enterprises are engaged in export activities.

Today in Kazakhstan there are all recognized measures of state support for exports, which are "blurred" between the various state bodies. This leads to inconsistency of the measures, duplication of the same functions between export promotion organizations. From all this misunderstanding between our bodies suffer entrepreneurs. Therefore, given that support for exporters is a versatile mechanism and requires the use of different instruments, you must organize all measures into a single organic and consistent process. To do this, you must develop a new strategy to promote exports with consolidation on export orientation of SMEs, all measures of export support with operatorship in a single window, taking into view the formed regional infrastructure up to the regional centers and the presence of a digitized database of medium and large enterprises in the system, established relations with the trade and industry chambers of foreign countries. One operator in the field of export could be managed by NCE  "Atameken".

Step 6. Business Navigator and business constructor.

Regional map of business – is an electronic portal, which is a business navigator, providing information for entrepreneurs, potential entrepreneurs, investors and other users with an interest in entrepreneurship. Business Navigator includes information on the measures of state support and development of entrepreneurship; analytical review of all the regions of the country (economic specialization and the main indicators of socio-economic development). The portal also contains the Unified Register of the country's entrepreneurs with relevant contacts and other necessary information about business entities.

The regional map can be a real basis for the adoption of industrial and investment decisions. Currently, 105 promising investment projects are included in the map. Representatives from more than 103 countries have visited the portal. At the same time businesses today are experiencing the problem to bring business ideas to the level of investment projects in the form of a feasibility study in order to further attract investors. And the investment projects proposed by entrepreneurs usually do not meet the requirements of investors.

NCE believes that RKS is obliged to take into account the data of the Regional Map when making decisions on inclusion of projects in the Industrialization Map. It is necessary to include in the program "Roadmap of business-2020" a measure of the state support of entrepreneurs in the form of refund of costs for a feasibility study. At the same time to approve the requirements for companies compiling feasibility studies. The situation requires the establishment on the basis of the regional map of a subsystem "business-constructor", as a tool for searching the optimal territorial market niche based on key market data.

Step 7: The "Government For Business".

In recent years, the government has initiated and created the infrastructure of business support measures, the necessary programs and institutions. Today the time has come when it is necessary to consolidate these support measures, to make them comfortable and efficient, providing business support measures in the "single window" by analogy "Government for citizens". The "Government For Business" will create a synergy effect from consolidation of support measures into a "single window". It will increase the coverage and availability of support measures for entrepreneurs, as well as increase the transparency of support measures procedures.

Operatorship, taking into account the existing infrastructure at the district level and experience in provision of services to entrepreneurs can be consolidates at NCE RK "Atameken" in coordination with the Government.

Government for business - this one window, in which the entrepreneur can get advice, services and support into a single standard and format, bringing together all the measures provided by the development institutions for business, ranging from subsidies, grants, certification, factoring, commercial areas, SEZs, R & D and etc.

Step 8. To review the supervisory functions of state bodies.

61 bodies in the country exercises control and supervisory functions. The analysis showed that 512 agencies have control functions in different spheres. The large-scale supervision is confirmed by the following figure: there are more than 18 thousand requirements set for entrepreneurs.

No one disputes that the main task of state control is to ensure the safety of products (works, services). But the quality issues must be regulated by the market itself, as the main purpose of the market is goodwill, to attract consumers and strategic focus on a customer. It is vital to every organization and enterprise, operating in a competitive market. The time has come when it is necessary to conduct an audit of supervisory functions of state bodies. NCE RK "Atameken" has also developed a number of proposals here.

Step 9. Pseudo-entrepreneurship and protection of bona fide entrepreneurs.

The new Criminal Code doesn’t have significant easements on economic crimes, in general. Penalties for some of them are quite comparable to the punishment for murder, for example, for issuance of the fictitious invoices, tax evasion, pseudo-entrepreneurship a person can be sentenced for up to 10 years in prison. Taking into account the current policy of transition from the punitive measures to prevention, for criminal offenses in the economic sphere should be applied economic measures of responsibility.

In the course of criminal proceedings in cases pseudo-entrepreneurship, a the legal requirements in terms of objectivity and completeness of the study are not observed. The very composition of the "pseudo-entrepreneurship" duplicates other offenses (in fact it is one of the ways to tax evasion, bank loans, fraud). There is a bad practice of cancellation of registration of legal entities (pseudo-enterprises). All of their transactions with counterparties are deemed invalid. As a consequence, their contractors have to pay additional amounts of taxes and fines.

Criminal prosecution is also used as a tool for "unplanned" inspections and is still a means of exerting pressure on business. If for a routine check the state agency must prove its validity in the prosecutor's office, then there are no barriers for the beginning of the criminal prosecution.

Despite the recent adoption of a new Code "On Administrative Offences", there a number of issues, which need to be addressed. In general, the code contains 608 offenses, of which more than 400 are applied to business entities. Of these 400 only 14 articles provide for punishment in the form of a "warning", i.e. unopposed.

Of course, this issue requires special discussion. One can cite many examples from everyday life of NCE, when representatives of the business come to "Atameken" for protection. But today it is necessary to use systemic measures. It is the exclusion of excessive repression in the Criminal Code with a departure from the punitive measures for prevention. It is equally important to work on the expansion of prevention institute under the Administrative Code, eliminating dependence on the size of the business fines and penalties set upper limits for all categories of businesses.

Step 10. Implementing the OECD standards.

At an expanded government meeting in September, the Head of State noted the need for re-inventory of subordinate organizations of the ministries and departments in order to transfer them to the competitive environment or the local level.

Currently, the role of quasi-public sector of the economy is still too high. The share of assets of state-controlled organizations reaches up to 60% of GDP. No information is available about the exact number of state-owned companies, as the Register of state property KGIP MF RK includes subsidiaries and affiliated companies of state-owned until the 5th level of affiliation, although some state-owned companies have the organizational structure to the 9th level.

To overcome this situation, to execute the order of the Head of State in terms of reduction of the proportion of state involvement in the economy to 15% of GDP by experience of OECD countries, NCE offers in parallel with the execution of the Comprehensive privatization plan for 2016-2020 at the governmental level to create a special working group - The Government headquarters. Together with representatives of the business community, it will conduct a full analysis of the functions and jurisdiction of state agencies and subsidiaries of Local executive bodies in terms of breach of market principles and the OECD standards. And will issue a verdict: to privatize and / or eliminate the entities and organizations.

The above measures are fully consistent with the objectives outlined by the Head of State in the Strategy of Kazakhstan joining the top-30 developed countries and the implementation of the OECD standards. NCE "Atameken" is ready to participate in the discussion and finalization of the proposals with the state authorities, as well as to provide detailed mechanisms, necessary calculations, proposals to amend the legal acts.