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Introduction to Kazakhstan
Economics of Entrepreneurship: The Republic of Kazakhstan is a country in the north of Central Asia & Eastern Europe. It is the world’s largest landlocked country. It was declared an independent country from the Soviet Union on 25 October 1990. It is a very progressive economically in the region of Central Asia as it generates 60% GDP of the region entirely, Zarakhovich & Yuri (2006)1.
As per 2015, the population of Kazakhstan is 17.54 million. To measure a business environment of an economy it is important to compare it with the environment in other economies. Economies are ranked from 1 to 185 according to the ease of “doing business index”. Kazakhstan has created a business environment which is a very new business-friendly, as compared to other market economies (Doing Business, 2010). Kazakhstan is ranked 49 in Doing Business, 2013 which is the best among Central Asian economies comparatively (Doing Business, 2013). Now it is ranked 35 in ease of doing business (Doing Business, 2017).
Cost of business startup procedures is 0.60% of GNI per capita, new business density per 1000 people is 1.71, new businesses registered are 19,568 and time required to start a business is 12 days and the best country requires 0.5 days to do so. 2
Entrepreneurship in Kazakhstan
Economics of Entrepreneurship the procedure of designing, launching and running a new business, which traditionally begins as a small business, such as a startup company, offering a product, process or service, and the people who do so are called ‘entrepreneurs‘ (Yun, 2015, Wikipedia). Concept of franchising in Kazakhstan is new, and it has been growing very slowly. Since 90% of businesses are family businesses, opportunities for franchising and buyouts are very limited. People either startup a new business or join the family.
During 1986-91, a trend of discussing and organizing enterprises among students in Kazakhstan emerged and students started to bring entrepreneurial ideas to initiate small businesses. There was no official support from the government as there were no laws regarding it initially.
But later after independence, new laws related to setting up a small business were passed. According to 2006 law, “private entrepreneurship” is defined as an individual initiative based on organizing one or more person’s personal property in private business for the purpose of receiving income in exchange for accepting risk associated with the use of the personal property (Law, 2006).
Kazakhstan faced the same resistance to change about entrepreneurship & small businesses but it has improvised in overcoming barriers to it (Luthans & Ibrayeva, 2006).
The world has categorized business into 3 types: small, average and large business. Every country has different indicators to measure the size of the business. Some define them on the basis of annual income, high involvement of the owner in business and number of employees working in a business. In Kazakhstan, the indicators to define the size of business are a number of employees and annual sales…………….
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