ORDER OF THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN

of August 25, 2018 No. 522

About approval of the State program of support and business development "The road map of business-2020"

The government of the Republic of Kazakhstan DECIDES:

1. Approve the enclosed State program of support and business development "The road map of business-2020" (further - the Program).

2. To the central and local executive bodies and other organizations to take measures for program implementation.

3. To responsible central and local executive bodies, the organizations (under approval) to provide information in the Ministry of national economy of the Republic of Kazakhstan according to the Actions plan on program implementation according to the order of the Government of the Republic of Kazakhstan of November 29, 2017 to No. 790 "About approval of System of state planning in the Republic of Kazakhstan".

4. Recognize invalid some decisions of the Government of the Republic of Kazakhstan according to appendix to this resolution.

5. To impose control of execution of this resolution on the Ministry of national economy of the Republic of Kazakhstan.

6. This resolution becomes effective from the date of its signing and is subject to official publication.

Approved by the Order of the Government of the Republic of Kazakhstan of August 25, 2018 No. 522

State program of support and business development "The road map of business-2020"

1. Passport of the Program

2. Introduction

3. Analysis of the current situation

4. Purposes, tasks, target indicators and indicators of results of program implementation

5. Main directions, ways of achievement of effective objectives of the Program and adequate measures

6. Necessary resources

Chapter 1. Passport of the Program 

Name	State program of support and business development "The road map of business-2020"
Basis for development	The presidential decree of the Republic of Kazakhstan of August 1, 2014 No. 874 "About approval of the State program of industrial and innovative development of the Republic of Kazakhstan for 2015 - 2019 and about entering of amendment into the Presidential decree of the Republic of Kazakhstan of March 19, 2010 No. 957 "About approval of the List of state programs"; The entrepreneurial code of the Republic of Kazakhstan of October 29, 2015.
State body responsible for development of the Program,	Ministry of national economy of the Republic of Kazakhstan
State bodies and organizations responsible for program implementation	Central and local executive bodies, subjects of the quasi-public sector
Program purpose	Ensuring strong and balanced rise of regional entrepreneurship, and also maintenance acting and creation of new permanent workplaces
Tasks	1. Increase in availability to financing of entrepreneurs of rural settlements, small cities and monotowns. 2. Increase in production capacities of entrepreneurs of rural settlements, small cities and monotowns. 3. Expansion business of initiative of entrepreneurs in rural settlements, the small cities and monotowns. 4. Growth in volumes of the made products of processing industry. 5. Creation of new competitive productions. 6. Population employment increase in small and medium entrepreneurship. 7. Non-admission of transformation of currency risks in credit in connection with fluctuations of foreign currencies. 8. Information and analytical ensuring entrepreneurship. 9. Increase in competences of entrepreneurs/subjects of industrial and innovative activities. 10. Performance improvement of entrepreneurs/subjects of industrial and innovative activities. 11. Expansion of business contacts.
Realization terms	2015-2019
Target indicators	By accomplishment of the tasks set in the Program by 2020 the following target indicators will be reached: 1. Finishing share of processing industry in structure of GDP is at least % 12,5. 2. Increase in amount of production of MSP in time 1,5 from the level of 2014. 3. Increase in actively acting subjects of MSP by 50% of the level of 2014. 4. Increase in quantity occupied in MSP for 50% of the level of 2014.
Sources and amounts of financing	Budget funds in the amount of 145 819 065 thousand tenges * will be allocated for program implementation in 2015-2019, 1) means from the republican budget: 2015 –  55 960 992 thousand tenges; 2016 – 53 939 805 thousand tenges; 2017 – 16 910 820 thousand tenges; 2018 – 10 374 471 thousand tenges; 2019 – 8 632 977 thousand tenges; 2) means from the local budget: 2017–  30 000 000 thousand tenges; 2018 –  30 000 000 thousand tenges; 2019–  30 000 000 thousand tenges, 3) means from National fund of the Republic of Kazakhstan: 2015 –  9 781 530 thousand tenges; 2016 –  14 565 048 thousand tenges; 2017 –  8 561 115 thousand tenges.

Chapter 2. Introduction

The state program of support and business development "The road map of business-2020" (further - the Program) is developed for implementation of the President's letter of the Republic of Kazakhstan to the people of Kazakhstan "New decade - New economic recovery - new opportunities of Kazakhstan" and the National development plan for Kazakhstan till 2020 approved by the Presidential decree of the Republic of Kazakhstan of February 17, 2010 No. 925.

The program is directed to goal achievement of president's letters of the Republic of Kazakhstan to the people of Kazakhstan "Strategy" Kazakhstan - 2030 "and" the Kazakhstan way - 2050: single purpose, single interests, single future".

From condition and the level of development of private entrepreneurship and, first of all, small and medium entrepreneurship, ensuring sustainable economic development of the country in general depends. This sector of economy has huge potential opportunities for the solution of many problems influencing the economic growth of the state such as undeveloped competition, inefficient use of material and non-material resources, dependence of the internal demand on import, unemployment, poverty, etc.

The role of small and medium entrepreneurship in diversification of economy is important. In sales terms of GPIIR more and more large-scale productions in which working processes the great number of subcontractors from among subjects of small and medium entrepreneurship can be involved will be created. In villages, the small cities and monotowns subjects of entrepreneurship shall set new impulse of development, working in the sectors oriented to satisfaction of the consumer demand of the population.

With respect thereto acceptance of system measures for support of private entrepreneurship which will include is necessary, but not to be limited to improvement of access to financing, providing necessary infrastructure, assistance in increase in competence, receipt of consulting support and involvement of partners for joint realization of entrepreneurial initiatives.

The program which will be implemented in the period of 2015-2019 will provide the strong and balanced rise of regional entrepreneurship, and also maintenance acting and creation of new permanent workplaces.

Four main directions of program implementation:

1) support of business initiatives of entrepreneurs of monotowns, small cities and rural settlements;

2) industry support of the entrepreneurs performing activities in priority sectors of economy and industries of processing industry;

3) decrease in currency risks of entrepreneurs;

4) provision of non-financial measures of support of entrepreneurship.

Main terms and determinations

In this Program the following main terms and determinations are used:

1) bank - the bank of the second level participating in the Program;

2) bank loan (further - the credit) - cash amount, provided by bank based on the agreement of bank loan to the entrepreneur on the terms of urgency, the paid nature, recoverability, security and target use;

3) development bank - Development Bank of Kazakhstan joint-stock company and/or its affiliated leasing company;

4) the web portal of the operator of non-financial support - information system of the operator of non-financial support where non-financial measures of the state support in electronic format are provided to users;

5) guaranteeing - the form of support of entrepreneurs used in the form of provision of partial guarantee as ensuring obligation fulfillment on the credit of the entrepreneur on the terms of the Program and according to the agreement of guarantee;

6) public-private partnership - the form of cooperation between the state partner and the private partner corresponding to the signs determined in the Law of the Republic of Kazakhstan of October 31, 2015 "About public-private partnership";

7) GPIIR - The state program of industrial and innovative development of the Republic of Kazakhstan for 2015 - 2019 approved by the Presidential decree of the Republic of Kazakhstan of August 1, 2014 No. 874;

8) the agreement of financial leasing - the written agreement signed between the leasing company / bank and the entrepreneur under the terms of whom the leasing company / bank provides to the entrepreneur financial leasing;

9) the agreement of bank loan - the written agreement signed between bank and the entrepreneur under the terms of whom the bank grants the loan to the entrepreneur, and also the agreement on opening of credit line in bank;

10) information system - the organizational arranged set of the information and communication technologies and technical documentation realizing certain technology actions by means of information exchange and intended for the solution of specific functional objectives;

11) leasing company - the leasing company participating in the Program;

12) the leasing transaction (leasing) - set of coordinated actions of the participants of leasing directed to establishment, change and the termination of the civil laws and obligations;

13) the local coordinator of the Program - the structural division of the city/area determined by the akim of area performing consulting escort of entrepreneurs on preparation and collection of the documents necessary for participation in the Program;

14) the beginning young entrepreneur - the individual entrepreneur aged up to 29 years (inclusive) which term of state registration as the individual entrepreneur constitutes at the time of the appeal to bank behind the credit less than three years (the age is determined for date of the appeal of the beginning individual entrepreneur to bank, the affiliirovannost of the young beginning entrepreneur with the acting entrepreneurs on condition of creation of the new type of activity different from the current activities of the acting affiliated entrepreneur is allowed);

15) the international foreign organizations (further - MZO) - the international non-governmental organizations assisting the companies of small and medium entrepreneurship in the organization of foreign training and establishment of business connections with foreign partners and/or aimed at assistance to development of subjects of small and medium entrepreneurship;

16) the beginning entrepreneur - the entrepreneur whose term of state registration as the individual entrepreneur or the legal entity constitutes at the time of the appeal to bank / the leasing company / microfinancial institution for the credit/agreement the leasing/microcredit less than three years (the affiliirovannost of the beginning entrepreneur with the acting entrepreneurs on condition of creation of the new type of activity different from the current activities of the acting affiliated entrepreneur is allowed);

17) OKED (further - priority sectors of economy within the Program) - priority sectors of economy according to the general qualifier of types of economic activity according to appendix 2 to the Program;

18) operator of non-financial support - The national chamber of entrepreneurs performing the state non-financial support to Entrepreneurs within the fourth direction of the Program, except for the components "Joint Financing of Consulting Projects of the Advanced Companies by Involvement of External Consultants (the Program of the EBRD for Support of Small and Medium Entrepreneurship of the Republic of Kazakhstan)", "Training of Top Management of Small and Medium Entrepreneurship";

19) educational institution - the organization rendering services in advanced training of leading employees and managers by carrying out business trainings and consulting maintenance of training of project participants "Business contacts" abroad;

20) the entrepreneur – the subject of small and (or) medium business performing the activities according to the Entrepreneurial code of the Republic of Kazakhstan of October 29, 2015 and also the subject of private entrepreneurship specified in the Mechanism of crediting of priority projects approved by the order of the Government of the Republic of Kazakhstan of December 11, 2018 No. 820 "About some questions of ensuring long-term tengovy liquidity for the solution of task of available crediting";

21) the project - set of actions and actions in the different directions of business activity performed by the entrepreneur as the initiative activities directed to income acquisition and which are not contradicting the legislation of the Republic of Kazakhstan (within one project receipt of several bank loans is allowed);

22) the principle of "one window" - the organization of work by provision of the state services providing exception or the greatest possible restriction of participation of applicants (citizens, legal entities and individual entrepreneurs) in processes of collection of different instances and provision in different instances of the different documents and references confirming the rights of applicants to receipt of the state services;

23) the regional coordinator of the Program - determined by the akim of area (the capitals, the cities of republican value) the structural division of local executive body responsible for program implementation at the regional level (the capitals, the cities of republican value);

24) subsidizing - the form of the state financial support of the entrepreneurs used for partial expense recovery, paid by the entrepreneur to bank / the microfinancial organization / leasing company as remuneration on credits/leasing in exchange for accomplishment in the future the certain conditions relating to operating activiies of the entrepreneur;

25) subsidies - the periodical payments on non-paid and irretrievable basis performed by the financial agency / authorized organization for microcredit to bank / the microfinancial organization / leasing company within subsidizing of entrepreneurs based on agreements of subsidizing;

26) authorized body - authorized body on entrepreneurship;

27) the financial agency - joint-stock company "Fund of development of entrepreneurship "Lady", enabling the realization and monitoring of financial support within the Program;

28) the operator of the component/tool - national managing holding or legal entities whose hundred percent of shares belong to national managing holding, and also the organization with absolute participation of the state, the Programs enabling the realization of components/instruments of non-financial support within the fourth direction;

29) the single accumulation pension fund - the legal entity performing activities for attraction of pension contributions and retirement benefits (further - ENPF).

30) national institute - the national institute of development in the field of technology development performing functions of the operator on support of activities of business incubators and maintenance of processes of provision of state grants to industrial and innovative projects within business incubation;

31) the subject of industrial and innovative activities - the physical and (or) legal entity realizing industrial and innovative projects in priority sectors of economy or performing activities for promotion of the domestic processed goods, works and services on internal and (or) the foreign markets;

32) the electronic request - the statement on receipt of the state support in which information is provided in electronic and digital form and is certified by means of the digital signature;

33) electronic document package - the documents which are completely reproducing type and information (data) of the authentic document in electronic and digital form, certified by the digital signature of the applicant or person having powers on the certificate of this document, or the authorized employee of service center of entrepreneurs based on written consent of the receiver of the state service this at the time of its personal presence.

Chapter 3. Analysis of the current situation

The program implementation is aimed at development of regional private entrepreneurship and development of competitiveness.

In the period of program implementation "The road map of business-2020" from 2010 to 2017 in indicators of development of non-oil sectors of economy to which support was oriented positive tendencies were planned. Due to use of instruments of subsidizing of interest rates and guaranteeing the credits the state managed to stimulate banks of the second level to growth in volumes of crediting of such industries as processing industry, transport and communication.

As of January 1, 2017 the portfolio of the operating credits within the Single Program "Road Map of Business-2020" constituted 1 463 billion tenges from which portfolio of the credits for the investment purposes - 968 billion tenges.

The total amount of bank portfolio of the credits by priority sectors of economy as of January 1, 2018 - 9 397 billion tenges, scope of the Single Program "Road Map of Business-2020" in total amount of credit portfolio by priority sectors of economy constituted % 15,5 (it is percent of current agreements of subsidizing and guaranteeing in total credit portfolio of priority sectors of economy).

In general from 2010 to 2017 the total credit portfolio of banks in processing industry increased in time 2,9 (from 455 billion tenges to 1 323 billion tenges), in the sector of transport - in time 2,3 (from 252 billion tenges to 573 billion tenges), in the sector of communication - in time 1,9 (from 51 billion tenges to 99 billion tenges).

The total volume of the issued credits of processing industry for these three years grew by 3 times (from 383 billion tenges to 1 153 billion tenges), to the sector of transport - in time 2,6 (from 145 billion tenges to 377 billion tenges), to the sector of communication - in time 2,1 (from 22 billion tenges to 46 billion tenges).

The Road Map of Business-2020 program provided restriction on remuneration rate at which the final consumer of borrowing facilities attracted financing. As a result of realization by the Road Map of Business-2020 Program of rate for the issued credits considerably decreased. From 2010 to 2017 the weighted average rate on the issued credits of processing industry decreased from 12% to % per annum 10,3, to the sector of transport - with % 12,5 to % per annum 10,3.

Proceeding from the developed current situation it is visible that the state creates all conditions and opportunities for investments, but there is no support of subjects of small and medium entrepreneurship, persons interested to fill up current assets. Based on data on structure of crediting, it is possible to state that expansion of tools of the Program in this direction considerably will increase the level of support of subjects of small and medium entrepreneurship, thereby having created premises to more essential growth of subjects of small and medium entrepreneurship in the country.

Non-financial state support in type of training was included into the Road Map of Business-2020 Program in 2011. For years of realization of this direction this support found popularity. As of January 1, 2018 training in the "Training of Top Management of Small and Medium Business" project - there underwent 2 525 entrepreneurs. Work on creation of infrastructure of support of entrepreneurship is carried out. So, for January 1, 2018 18 service centers of entrepreneurs in the regional centers and the large cities in which more than 273 thousand entrepreneurs got more than 438 thousand advice function. At the regional level 14 mobile centers of support of entrepreneurship which rendered 52 thousand to clients more than 73 thousand exit consultations operate. Besides, service support to the operating business activity is given. So, more than 192 thousand to entrepreneurs is rendered to 428 thousand services.

Thus, the analysis of the current situation shows that the Program shall provide purposeful support of small and medium entrepreneurship out of the large cities and strengthening of entrepreneurial potential.

It should be noted the fact that since 2015 operator of non-financial support within the Single program "Road Map of Business-2020" is the National chamber of entrepreneurs (further - Scientific Production Enterprise). Thus, since 2015, the following projects are implemented by Scientific Production Enterprise:

1. Business Adviser

2. Business Growth

3. Business contacts

4. Senior señores

5. Business Nasikhat

6. Centers of support in monotowns

7. Centers of support in the small cities and district centers.

Within the Program for the "Support of New Business Initiatives" direction such problematic issues as increase in availability to financing, increase in production capacities of projects, expansion of business initiative of entrepreneurs of rural settlements, small cities and monotowns and their projects are resolved.

For increase in availability to financing of entrepreneurs of monotowns, small cities and rural settlements are performed subsidizing of rate of remuneration on the credits of banks, partial guaranteeing the credits of the banks issued to entrepreneurs and microfinancial institutions, provision of the microcredits.

For increase in production capacities of entrepreneurs of monotowns, small cities and rural settlements leading of missing infrastructure to projects of entrepreneurs of rural settlements, small cities and monotowns is performed.

For expansion of business initiative of entrepreneurs in monotowns, the small cities and rural settlements issue of state grants is performed.

Development of entrepreneurship in priority sectors of economy and industries of processing industry will solve problems of growth in volumes of the made products of processing industry, creation of new competitive productions, population employment increases in small and medium entrepreneurship.

For growth in volumes of the made products of processing industry are performed subsidizing of rate of remuneration on the credits / to leasing transactions of banks / leasing companies and partial guaranteeing the credits of the banks issued to entrepreneurs.

For creation of new competitive productions providing missing infrastructure of projects of entrepreneurs and industrial zones will be performed.

For population employment increase in small and medium entrepreneurship are performed subsidizing of rate of remuneration on the credits / to leasing transactions of banks/bank of development / leasing companies and partial guaranteeing the credits of banks/development bank issued to entrepreneurs, providing missing infrastructure of projects of entrepreneurs and industrial zones.

For non-admission of transformation of currency risks in credit in connection with fluctuations of foreign currencies subsidizing of rate of remuneration on the credits / to leasing transactions of banks/bank of development / leasing companies in national and foreign currencies is performed.

The problem resolution on provision of non-financial measures

supports of entrepreneurship are information and analytical ensuring entrepreneurship, increase in competences of entrepreneurs/subjects of industrial and innovative activities, performance improvement of entrepreneurs/subjects of industrial and innovative activities, expansion of business contacts.

For information and analytical ensuring entrepreneurship the explanation of measures of the state support on the Business Nasikhat project about conditions of conducting business activity in state members of the Eurasian Economic Union and measures of the state support of subjects of agro-industrial complex will be performed.

For increase in competences of entrepreneurs / subjects of industrial and innovative activities training in bases of business activity, advanced training of specialists, top managers of the companies, provision of service support of conducting the operating business activity, provision of consultations concerning receipt of allowing documents and specifications are performed.

For performance improvement of subjects of industrial and innovative activities will be performed involvement of external consultants concerning implementation of new methods of management, production technologies, performance improvement and energy saving of the companies, and also technology development of the companies.

For expansion of business contacts establishment of business connections with foreign partners and promotion of the domestic processed goods will be performed.

Chapter 4. Purposes, tasks, target indicators and indicators of results of program implementation

4.1. Purposes

1. The purposes of the Program are ensuring strong and balanced rise of regional entrepreneurship, and also maintenance acting and creation of new permanent workplaces.

4.2. Tasks

2. For goal achievement and target indicators of the Program work on the following four directions will be carried out:

1) support of business initiatives of entrepreneurs of monotowns, small cities and rural settlements;

2) industry support of the entrepreneurs/subjects of industrial and innovative activities performing activities in priority sectors of economy and industries of processing industry;

3) decrease in currency risks of entrepreneurs;

4) provision of non-financial measures of support of entrepreneurship.

Support of business initiatives of entrepreneurs of monotowns, small cities and rural settlements

3. Within this direction it is necessary to solve the following problems:

1) increase in availability to financing of entrepreneurs of monotowns, small cities and rural settlements;

2) increase in production capacities of projects of entrepreneurs of monotowns, small cities and rural settlements;

3) expansion of business initiative of entrepreneurs in monotowns, the small cities and rural settlements.

Task 1. Increase in availability to financing of entrepreneurs of monotowns, small cities and rural settlements

For increase in availability to financing of entrepreneurs of monotowns, small cities and rural settlements will be performed subsidizing of rate of remuneration under credits/agreements of financial leasing of banks/bank of development / leasing companies, partial guaranteeing the credits of banks/development bank issued to entrepreneurs and microfinancial institutions, provision of the microcredits.

Table 1. Target indicators on increase in availability to financing of entrepreneurs of rural settlements, small cities and monotowns

payment order

Name of indicator

Measurement unit.

Information source

Years of realization

Responsible for execution

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info