Kazakhstan Economic Diversification through SME Development: Introducing New Sources of Funding for SMEs

In order to counter natural resource dependence and encourage entrepreneurial development in Kazakhstan, the Government of Kazakhstan (GoK) has embarked upon a multi-faceted approach to small and medium enterprise (SME) creation in the non-oil sectors of the economy. Under the onus of the sustainable development fund Kazyna, the government has tasked two governmental agencies, the Small and Medium Enterprise Fund (SMEF) and the National Innovation Fund (NIF), to remedy deficiencies in capital access for growing SMEs. Despite government efforts, access to capital is still inefficient due to inchoate developmental aims, procedural imperfections and bureaucratic restrictions. The objective of this workshop was to identify bottlenecks to SME development. In particular, the focus of the report is on streamlining existing SME financing programs and the provision of additional sources of financing as methods to enhance SME access to capital.  In addition to analyzing the SME environment in Kazakhstan, a benchmark analysis was conducted, looking specifically at Malaysia, Norway, the United States and the United Kingdom for examples of successful SME finance enhancing policies.