Competetivness and Development of Kazakhstani SMEs

Abstract

This paper explores the current condition of the SMEs in Kazakhstan and their competitiveness.  Theories of competitive advantage have been discussed and the data obtained from the Agency of Statistics of the Republic of Kazakhstan, The World Bank and the “Fund Damy” JSC surveys related to Kazakhstani SMEs were analyzed. It was found that Kazakhstani SMEs are mostly concentrated in the trading sector and SMEs structure of developed countries such as United Kingdom and Denmark is more diversified than in Kazakhstan. In addition, it was determined that contribution of Kazakhstani SMEs to GDP of the country is very low compared with high income countries. Analysis of the sources of competitive pressure showed that most Kazakhstani enterprises do not experience high pressure from foreign competitors. The weakest identified indicators in Kazakhstani SMEs development are low rate of real annual sale growth, low share of companies obtained international certification, low share of companies using websites, low percentage of companies investing in research and development activities. As the main obstacles of running business-high tax rates, corruption and access to finance were determined. The suggestions for raising the level of competitiveness of Kazakhstani SMEs were provided in the conclusion of this article.