More than 100 thousand jobs created thanks to the "Business Roadmap"

A press conference was held at the Central Communications Service under the President, at which the interim results of the implementation of the state program "Business Roadmap 2025" were announced. The Baiterek Holding is implementing the program through its subsidiary, the Damu Entrepreneurship Development Fund.

- The current period for Kazakhstani business is very difficult. Due to the forced restrictive measures due to the coronavirus pandemic, businesses have to stand idle and suffer losses. In this situation, support for small and medium-sized businesses is a priority for the Baiterek holding. For small and medium-sized businesses, we offer many available tools, both within the framework of state programs and within our own programs. Most of this support is concentrated in the state program "Business Roadmap" - said Deputy Chairman of the Management Board of the Holding Rustam Karagoishin.

The Business Roadmap has been implemented since 2010 on behalf of the First President - Elbasy Nursultan Nazarbayev. As Rustam Karagoishin emphasized, "The CST has already confirmed its success and secured the status of a faithful assistant to Kazakhstani entrepreneurs".

One of the demanded tools to support SMEs is the subsidization of the remuneration rate. As of August 1, 2020, since 2010, the Damu Fund has subsidized 16,311 projects worth 2.8 trillion tenge in loans. Including in 2019 2 402 projects for a total amount of loans of 154 billion tenge.

The industrial structure of subsidized projects is dominated by projects in the manufacturing industry (4,444 projects for a total amount of loans of 1.2 trillion tenge), transport and warehousing (3,629 projects for 413 billion tenge). In the wholesale and retail trade - 2,293 projects worth 286 billion tenge, 1,220 agricultural projects worth 144 billion tenge.

Another popular measure of state support for small business is a guarantee from the Damu Fund. When an entrepreneur does not have enough collateral when obtaining a loan for his business, the Fund acts as a guarantor.

As of August 1, 2020, guarantees were provided for 7,518 projects for the amount of loans of 306 billion tenge, the amount of guarantees amounted to 117 billion tenge. In 2019, 1,726 projects were supported for a total amount of loans of 74 billion tenge, the amount of guarantees amounted to 27 billion tenge.

In the sectoral context, among the financed projects, the largest share is also occupied by the manufacturing industry (2,206 projects with a total amount of loans of 103 billion tenge) and trade (1,309 projects worth 32 billion tenge in loans).

- I would like to voice other figures that demonstrate, in my opinion, the effectiveness of the program. So, entrepreneurs participating in the program for 2010-2019 produced products worth 25 trillion tenge, paid taxes in the amount of 1.6 trillion tenge. Thanks to entrepreneurs who received state support under the CST, over 100 thousand new jobs were created, - Rustam Karagoishin emphasized.

If we talk about the multiplier effect, then 10 tenge of loans were attracted for 1 tenge of subsidies. For 1 tenge of the guarantee, almost 2.6 tenge of credit funds were attracted. In addition, 1 tenge of subsidies, as the results show, bring 135 tenge of revenue and 8 tenge of tax revenues to the budget.

The Deputy Chairman recalled that from January 1, 2020, the Business Roadmap was extended for another five years - until 2025. Now it is being implemented with significant changes that will undoubtedly make it easier for businesses to access finance.

- Here I would like to note that this became possible thanks to the coordinated, efficient and highly professional work of the Ministry of National Economy of the Republic of Kazakhstan, - noted Rustam Karagoishin.

So, for the subsidy instrument:

- industry restrictions have been removed;

- the rate for entrepreneurs was unified at the level of 6%;

- the amount of loans that are subject to subsidies increased from 2.5 to 7 billion tenge, for a period of 5 years.

on a guarantee instrument:

- loans up to 360 million tenge are guaranteed for a beginner entrepreneur. At the same time, 85% of the loan amount is guaranteed;

- loans up to 1 billion tenge are guaranteed for existing entrepreneurs. 50% of the loan amount is guaranteed;

- loans are subject to guarantee aimed at 100% replenishment of working capital up to 500 million tenge;

- industry restrictions have also been lifted (except for trade and prohibited activities).

- We are faced with the task of increasing the number of entrepreneurs. If now the share of small and medium-sized businesses in the country's GDP is 30.8%, then by 2025 this figure should grow to 35%. We expect such colossal growth in five years, so I urge our entrepreneurs not to be afraid to seek government support to create or develop their business. - concluded the deputy head of the Baiterek holding.

The full version of R. Karagoyshin's report is available at this link >>