Reform and Development in a Transitioning Economy: Assessing Conditions in the Operating Environment of the Small Business Sector in Kazakhstan

Abstract

This paper examines the emergence of entrepreneurship in Kazakhstan with a view to explore the sector's sustainability. The paper looks at reforms which have enabled the dramatic increase in entrepreneurial activity in the country and discusses the barriers and challenges to further small business growth. A selfadministered survey instrument in the form of a questionnaire was completed by 60 small business owners in Almaty. The study found that Kazakhstan has proactively sought to develop entrepreneurial activity through a wide range of initiatives and reforms and has indirectly helped entrepreneurs through market reforms. However, numerous barriers still exist that frustrate and hinder small business activity and more must be done to address the needs of entrepreneurs if they are to realize their full potential. The research was limited in sample size; geographical reach and data sought. As Kazakhstan continues its aggressive economic development towards a market economy and builds its small business sector, there are implications for policy makers in the small business arena and implications for aspiring entrepreneurs. There is a scarcity of research on the topic of small business in Kazakhstan. This paper is of value to government agencies charged with improving the operating conditions for small business in Kazakhstan.