Investment climate and its influence on the development of entrepreneurship: practice of the Republic of Kazakhstan

Abstract

The purpose of this study is to identify problems that impede the investment activities of small and medium-sized enterprises (SMEs) in the Republic of Kazakhstan, as well as to study the recommendations of the leading representatives in the business community regarding the activities of the authorities in creating a favorable investment climate. Expert interviews with the Kazakhstan’s entrepreneurs, representatives of Akimats, and representatives of the scientific community have been conducted during the study. The results of the expert survey allow to conclude that the Republic of Kazakhstan has developed a rather favorable investment climate in general, and the authorities have done significant work to create conditions for business development. However, according to the expert review, some problems in the implementation of investment projects by SMEs still remain. According to the experts, the most significant problems include the underdeveloped transport and logistics infrastructure, the lack of available production and office space, and difficulties with registering land, attracting foreign labor, as well as obtaining various permits required for doing business. As a result of the study, the recommendations have been made for eliminating the barriers that hinder the creation of a favorable investment climate and the successful development of SMEs in the Republic of Kazakhstan. According to the experts, the attention should be focused on creating and developing ready-made platforms for doing business for investors, improving transport and logistics infrastructure, speeding up the state property privatization, etc.