Mechanisms of Stimulation of Small- and Medium-Sized Entrepreneurship: The Experience of Kazakhstan

Damira Kazbekova, Mariana Petrova (), Olena Sushchenko, Anargul Belgibayeva and Milen Mitkov
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Damira Kazbekova: Department of Economics and Marketing, Faculty of Business and Management, Esil University Astana, Akhmet Zhubanov St. 7, 020000 Astana, Kazakhstan
Mariana Petrova: Department of Information Technologies, St. Cyril and St. Methodius University of Veliko Tarnovo, 5000 Veliko Tarnovo, Bulgaria
Olena Sushchenko: Faculty of International Economics and Entrepreneurship, Tourism Department, Simon Kuznets Kharkiv National University of Economics, 61166 Kharkiv, Ukraine
Anargul Belgibayeva: Department of Business and Services, Higher School of Business and Law, Sh. Ualikhanov Kokshetau University, Abay St. 76, 020000 Kokshetau, Kazakhstan
Milen Mitkov: Bulgarian Air Force Academy “Georgi Benkovski”, University of Bulgaria, 5856 Dolna Mitropolia, Bulgaria

JRFM, 2024, vol. 17, issue 7, 1-26

Abstract: This study aimed to investigate the prerequisites, factors, and mechanisms for stimulating economic growth in small and medium-sized enterprises (SMEs), using the manufacturing industry of the Republic of Kazakhstan as a case study. Econometric tools, including statistical methods, regression analysis, time series analysis, scenario development methods, and the decision tree method, were employed to analyze the data. This research employed a range of scientific and applied methods, resulting in practical outcomes that can be utilized by SMEs to model various development scenarios. The key factors influencing SME development, such as the costs of technological innovations, average monthly wages, level of innovative activity, and investments in fixed capital, were identified. Based on these factors and the diagnosis of the state, a mechanism for state stimulation of entrepreneurship, encompassing financial incentives, tax breaks, infrastructure support, and targeted training programs, was developed. This mechanism includes a system of incentives, goal-setting, and tool formation. This study also developed a model to evaluate the potential impact of measures at the regional level on production volume growth in the manufacturing industry, presenting three scenarios—pessimistic, realistic, and optimistic—for consideration, which are significant for policymakers, practitioners, and stakeholders in the field. Stakeholders, including investors and industry practitioners, can apply the recommended strategies to foster innovation and drive economic growth. This study provided actionable recommendations and a robust framework for stimulating SME growth, offering valuable insights for enhancing the economic resilience and industrial development of Kazakhstan.

Keywords: small and medium-sized enterprises; mechanism of stimulation; policy; state stimulation; manufacturing industry (search for similar items in EconPapers)
JEL-codes: C E F2 F3 G (search for similar items in EconPapers)
Date: 2024
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