National Entrepreneurship Development Project for 2021-2025

Name

National Entrepreneurship Development Project for 2021-2025

The project’s tasks

- to ensure structural changes in entrepreneurship;
- to help develop small businesses to increase employment-to-population ratio;
- to diversify sectors of the economy;
- to increase market competition and ensure equal conditions for businesses.

Implementation period

2021 – 2025

Expected economic effect (quantitative data)

1.    The share of small and medium-sized businesses in GDP will reach 35%.

2.    The contribution of tourism to GDP will increase up to 8.4 trillion tenge.

3.    The state's share in the economy will be reduced to 14%.

4.    995.3 thousand jobs will be created, including:
- 335.1 thousand permanent jobs,
- 660.2 thousand temporary jobs.

Expected social effect (quantitative and qualitative data)

1.7 million people will get permanent jobs;
2. 3.5 million people will be assisted in finding a job;
3. The number of people living in rural areas and having income below the subsistence minimum will be decreased by 6.5%.

The amount of money required for the project implementation

8,455,329,919 thousand tenge (including the republican budget – 1,030,884,427 thousand tenge, local budgets – 124,695,492.0 thousand tenge, extra-budgetary money – 7,299,750,000 thousand tenge):
In 2021 – 1,272,207,923.3 thousand tenge;
In 2022 – 1,370,367,038.7 thousand tenge;
In 2023 – 1,620,056,904.0 thousand tenge;
In 2024 – 1,963,862,120.0 thousand tenge;
In 2025 – 2,228,835,933.0 thousand tenge;
Total – 8 455 329 919 thousand tenge.

Loans issued by second-tier banks are subsidized for businesses operating in any industry

Loans issued by microfinance organizations are subsidized only for businesses operating in high priority sectors of the economy

The interest rate established by the National Bank of the Republic of Kazakhstan + 7%, of which 6% is paid by an entrepreneur, and the rest is subsidized by the state

For projects implemented in villages, single-industry and small towns – the interest rate established by the National Bank + 7%, of which 5% is paid by an entrepreneur, and the rest is subsidized by the state

1. 3 years for investment purposes (the subsidizing period cannot be prolonged);

2. 2 years for working capital replenishment (the subsidizing period cannot be prolonged)

Entrepreneurs and subjects of industrial and innovative activities operating in priority sectors of the economy

Projects implemented in villages, single-industry and small towns (except for cities of republican significance and regional centers) can be subsidized disregarding sector of the economy

3 billion tenge for one entrepreneur. If a loan is provided to several affiliated entrepreneurs for the implementation of one business project, then the total loan amount cannot exceed 3 billion tenge.

1.5 billion tenge for entrepreneurs operating in villages, single-industry and small towns (except for cities of republican significance and regional centers).

Subsidizing under the Regional Program is available in socially vulnerable regions, during the state of emergency, or in other cases according to written agreement between a local executive body and an authorized body responsible for entrepreneurship.

The terms of subsidizing in socially vulnerable regions or during the state of emergency are agreed in writing by a local executive body and an authorized body responsible for entrepreneurship

The subsidized loan cannot exceed 500 million tenge for one small or medium-sized business. The subsidized loan amount is specified in a written agreement between a financial institution and a local executive body. The loan amount is calculated without taking into account other loans of an entrepreneur’s affiliates.

The maximum funding limit for a microfinance organization per one small or medium-sized business cannot exceed 8,000 MCI.

5 years for loans and microloans.

3 years for working capital replenishment (the subsidizing period cannot be prolonged).

1. Purpose of a loan;

2. Working capital replenishment;

3. 100% of the loan is intended for working capital replenishment (not more than 500 million tenge) with the exception of current payments for loans or leasing agreements and other purposes not related to the applicant's main activity;

4. Refinancing.