EC[ON]OMY

Evaluating State Support Measures in Kazakhstan

State support for business is key to sustainable growth. But its effectiveness often raises questions. The Ministry of National Economy is introducing new approaches to evaluation. The focus is on digital ecosystems, automation, and modern methods.

There are over 130 support measures in Kazakhstan. These include subsidies, tax benefits, and non-financial assistance. However, their variety creates confusion. Entrepreneurs struggle with procedures and requirements. This reduces accessibility and effectiveness.

Since 2023, effectiveness analysis is mandatory. A methodology for non-financial support evaluation is in use. Financial and property support evaluation methods are still under development.

The analysis uses two approaches: quantitative and qualitative.

Quantitative methods include:

• Measuring tax revenue growth.

• Evaluating labor productivity.

• Analyzing income and employee numbers.

Qualitative methods include:

• Surveys of entrepreneurs.

These surveys assess the impact of support on businesses

Digital ecosystems simplify procedures. Special tools automate surveys, data collection, and analysis. Results are available in real time.

A State Support Measures Registry has been created. It includes over 130 support types. The registry is available on rchl.govtec.kz. It will integrate with the “Entrepreneur’s Personal Cabinet” in the future.

Digitalization provides clear benefits:

• Saves time on research.

• Reduces survey costs.

• Improves data accuracy.

For example, 43 non-financial measures were analyzed in one year. Ten government agencies participated. Results identified the most effective tools.

Key challenges include:

• High demand for human resources.

• Low awareness among entrepreneurs about surveys.

To address this, integration with the Ministry of Finance is planned. This will improve data quality and methods.

Support recipients will be divided into four groups:

1. Low competitiveness.

2. Medium competitiveness.

3. High competitiveness.

4. Competitive but in recession.

Each group will receive tailored “support packages.” These packages target specific business needs.

Evaluating state support effectiveness is crucial. Digitalization makes this task achievable. Kazakhstan shows a progressive approach by integrating modern technology.

These measures will drive small and medium business growth. They will create jobs, increase tax revenues, and strengthen the economy.

 

Erik Jambylov, Director of the Entrepreneurship Development Department

at the Ministry of National Economy of the Republic of Kazakhstan

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