Entrepreneurship - The Times Of Central Asia

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Entrepreneurship

Founder of inDrive Sees Kindred Spirit in Olympic Champion’s Father

Years ago, Stanislav Shaidorov, a former figure skating champion of Kazakhstan, sold his car to help pay for his son Mikhail’s training on the ice. After Mikhail won Olympic gold this month, the older Shaidorov was presented with an Audi Q8 by a businessman who had done the same thing for a different cause. “This story is personal for me,” said Arsen Tomsky, founder and CEO of the ride-hailing app inDrive, which operates in dozens of countries. “I did the same twice in my life — once to pay salaries when my first company had no money, and once to send the Yakutia esports team to a national championship when we couldn’t afford the tickets,” Tomsky said on Instagram. Yakutia is in Russia. Tomsky was born in Russia, moved many employees to Kazakhstan after Russia’s full-scale invasion of Ukraine in 2022, and obtained Kazakhstani citizenship in 2023. Forbes Kazakhstan ranked Tomsky as the 11th richest business executive in the country in 2025. Kazakhstan has been celebrating 21-year-old Mikhail Shaidorov’s achievement at the Winter Olympics in Milan – his country’s first gold medal in figure skating. His father is also getting recognition as a pillar of support earlier in his son’s career, when success was far from assured. “As the father and first coach, he helped Mikhail take his first steps on the ice rink and was always by his son's side during the most difficult moments of life,” President Kassym-Jomart Tokayev said at a ceremony in Astana for the gold medal winner and his key supporters. “You went together through the winding path leading to the high peak,” Tokayev said to Stanislav Shaidorov on Wednesday. “Now you are seeing the fruits of your hard work and sweat, being honored and respected.” Tomsky, the inDrive founder, said he could relate to Stanislav Shaidorov’s decision to give up his car for his son’s dream. “In moments like that, you don’t think about the car,” the executive said. “You think about the future and the people you believe in.”

Tax Reform

Are Kazakhstan’s Small Businesses Really Leaving Over Taxes?

As Kazakhstan prepares for tax reforms set to take effect in 2026, a new wave of panic has surfaced in the national discourse, one suggesting that small businesses are facing a stark choice: shut down or relocate to neighboring countries promising more favorable tax environments. This narrative has gained traction twice in the second half of 2025. The first wave came in mid-autumn, triggered by reports suggesting that Kazakhstani entrepreneurs were looking to move operations to Kyrgyzstan or Uzbekistan. These claims quickly spread across Kazakh social networks, particularly Threads. However, early signs indicated that the alarm was not being sounded by small businesses themselves, but by representatives of the B2B services sector, especially consultants and accountants. Media outlets amplified comments that stirred fear, reinforcing what increasingly appeared to be media-driven panic. One such moment came in late September when the Kazakhstan Association of Tax Consultants hosted a presentation by its chairman, Saken Karin, titled “Tax Reality 2026: Opportunities and Risks.” Karin warned that the proposed reforms would “tear apart the B2B and B2C sectors,” criticizing state approaches to tax administration. Even then, experts argued that large-scale relocation of Kazakhstani businesses made little practical sense. “Which Kazakhstani businesses can realistically relocate to Kyrgyzstan? Probably only IT companies, which are location-independent. Most SMEs in Almaty rely on the quasi-public sector or the domestic market, which is considerably larger and wealthier than that of our neighbors,” said financier Rassul Rysmambetov. The numbers back this up: in 2024, the economy of Almaty alone reached $60 billion, compared to Kyrgyzstan’s national GDP of approximately $17.5 billion. Despite this, a second wave of panic is now gaining momentum, this time shifting focus to Uzbekistan as a destination for potential business migration. Once again, social networks, particularly Threads, are amplifying the noise, citing interviews such as one with tax expert Maxim Baryshev, who praised the tax systems of Uzbekistan and Kyrgyzstan. Baryshev represents the professional accounting organization Uchet.kz. His colleague, Uchet.kz manager Timur Abiev, has previously spoken out against what he views as unfounded panic surrounding tax reform. Despite growing anxiety on social media, government officials have yet to launch a strong counter-narrative. This lack of response reinforces the idea that panic is being stoked by peripheral sectors rather than the business community itself. When Finance Minister Madi Takiev was asked about claims of a mass relocation of small businesses to neighboring countries, he dismissed them as unfounded. He argued that tax thresholds and turnover requirements in those countries are broadly comparable to Kazakhstan’s and noted that businesses relocating abroad would still be subject to domestic taxation if their economic center of interest remained in Kazakhstan, making such moves economically unviable. As for the accounting industry, its vocal opposition to reform may be tied to structural weaknesses. Kazakhstan’s accounting sector has been slow to adapt to changing demands and is struggling to train enough professionals to meet market needs. The number of established training institutions remains small. A recent government meeting focused on SME support included plans...

Economic Growth

Kazakhstan Projects Strong GDP Growth as Economy Nears 300 Billion Dollars in 2025

Kazakhstan’s economy is entering a new phase of growth. By the end of 2025, the country’s gross domestic product is projected to exceed $300 billion for the first time, President Kassym-Jomart Tokayev announced at a national award ceremony for the Altyn Sapa, Paryz, and Best Product of Kazakhstan prizes. Over the past decade, Kazakhstan’s GDP has shown consistent growth in absolute terms, with the exception of the pandemic year of 2020, when the economy contracted to $171.1 billion. Since then, the country has reached new historical highs each year, from $197.1 billion in 2021 to $288.41 billion in 2024. In 2025, growth is expected to reach a record level.The president noted that, over the past five years, growth in the real sector has become noticeably more balanced. Gross value added in the manufacturing industry increased by 25 percent, outpacing growth in the extractive sector. “Economic growth is expected to exceed 6% this year,” Tokayev said. “Moreover, GDP is projected to exceed $300 billion for the first time” The president highlighted that, over the past five years, growth in the real sector has become noticeably more balanced. Gross value added in the manufacturing industry increased by 25%, outpacing the growth of the extractive sector. Investments in fixed capital grew by 70% over the same period, and labor productivity rose by 40%. As a result, non-resource exports doubled, the number of exporters tripled, and the geography of supply expanded to 140 countries. According to Tokayev, small and medium-sized enterprises (SMEs) now account for 40% of GDP and remain one of the most dynamic segments of the economy. “Over the past five years, the number of SMEs has increased by 1.5 times, and their output by 2.5 times. Today, 4.5 million people work in the business sector, almost half of the country’s employed population,” the president said. Tokayev also placed particular emphasis on the finalization of certain provisions in the new Tax Code, which is set to take effect in 2026. The president acknowledged that he had received a large number of appeals from entrepreneurs and instructed the government to carefully review the most problematic provisions. “It is important to understand that the sustainable development of entrepreneurship is based on the fulfillment of mutual obligations: the state creates the climate, and businesses pay taxes. The government must find a reasonable balance, there is no other option,” he stated. The president also called for continued development of the country’s digital business ecosystem to enhance transparency and reduce bureaucratic hurdles. Kazakhstan plans to significantly increase investment in its economy over the next five years, with the goal of nearly tripling its volume by 2029.

Entrepreneurship

Kazakhstan Aims to Double Output of Existing Medium-Sized Enterprises

Kazakhstan’s Ministry of National Economy, in partnership with the European Bank for Reconstruction and Development (EBRD), is developing a strategy to help existing medium-sized enterprises increase their production capacity two to threefold. The initiative is part of the “Improving the Investment Attractiveness of Medium-Sized Businesses” program. Deputy Minister of National Economy Yerlan Sagnaev announced the initiative at a press conference hosted by the Central Communications Service. According to Sagnaev, companies will receive state-backed support in the form of diagnostic assessments and customized development plans. “Today, medium-sized businesses are primarily concentrated in the manufacturing sector, which currently accounts for about 12% of total SME output. Yet there remains significant untapped potential for growth, as much as two to three times the current level,” he said. Sagnaev noted that the most active sectors include metallurgy, light industry, construction materials, mechanical engineering, and chemicals. The state plans to prioritize these industries, including through joint programs with the EBRD. According to ministry data, small and medium-sized enterprises (SMEs) now contribute 39.8% to Kazakhstan’s GDP. In the first half of 2025, the sector’s total output reached $82.6 billion, representing a 25% increase. Employment in the SME segment rose by 3.9% to 4.4 million people, with trade, industry, construction, transport, and agriculture driving the highest growth. However, challenges persist. A recent Business Climate rating by the “Atameken” National Chamber of Entrepreneurs shows that while 35.4% of small businesses plan to expand, only 10.1% are interested in launching new projects. Requests for government support remain modest at 18.8%, and 6.2% of respondents are considering staff cuts or closures. Timur Zharkenov, Deputy Chairman of the Atameken Board, highlighted the most pressing concerns for medium-sized businesses: a high tax burden (28.1%), labor shortages (16.2%), and inconsistent support from local authorities for investment initiatives. In autumn 2025, domestic manufacturers reported a decline in orders and a rise in production costs, reinforcing the urgency of state support and the need to improve operational efficiency.

Higher Education

New Partnerships Aim to Turn Kyrgyz Students into Entrepreneurs

On October 20, the investment fund Central Asia Capital signed strategic cooperation agreements with Jusup Balasagyn Kyrgyz National University (KNU) and the Kyrgyz-Russian Slavic University (KRSU) to promote practice-oriented education, support student startups, and create new employment opportunities. The partnerships aim to bridge the gap between academia and industry by providing students with hands-on business experience, mentorship, and pathways to entrepreneurship. “Our agreements with KNU and KRSU are a major step toward creating conditions where students not only gain knowledge but also apply it in real business settings. This is a strategic investment in the future of Kyrgyzstan’s economy,” said Anton Sobin, Chairman of the Board of Directors at Central Asia Capital. A flagship initiative under the agreements will be the launch of an Acceleration School, where students can develop business projects, receive expert mentorship, and compete for investment grants. “We want young people to see that they can build successful businesses in Kyrgyzstan without going abroad,” Sobin emphasized. Under the agreement with KNU, the fund will support curriculum modernization, scholarship programs, and internship placements within its subsidiaries and partner firms. The KRSU partnership emphasizes innovation and startup support, along with infrastructure development. Planned upgrades include a new innovation lab, enhanced sports facilities, and improvements to the university campus. Central Asia Capital will also assist in the renovation of KRSU’s educational and recreational complex at Lake Issyk-Kul.

Entrepreneurship

Kazakhstan’s Finance Ministry Cracks Down on Widespread Tax Evasion Among Small Businesses

Kazakhstan’s Ministry of Finance has identified more than 260,000 entrepreneurs suspected of underreporting taxable income, Finance Minister Madi Takiyev said during a recent government meeting. According to Takiyev, in 2024, around 17,000 cash registers across the country failed to issue any receipts, while 260,000 taxpayers consistently reported either a single daily transaction or identical revenue amounts. However, enforcement efforts appear to be paying off, with 70,000 businesses now issuing receipts properly. The minister noted that tax evasion schemes remain widespread, including the mass registration of multiple companies at the same address. Currently, around 20,000 firms are registered at 3,576 locations, collectively owing over 60 billion KZT ($110 million) in unpaid taxes. Takiyev reported that the shadow economy declined slightly in 2024, accounting for 16.7% of GDP, a marginal improvement from the previous year. He highlighted notable progress in trade, education, and agriculture, supported by new digital tools such as Smart Data Finance, which uses artificial intelligence to detect tax evasion. The system currently integrates data from 74 sources, with 30 more expected to be added by the end of the year. Biometric identification has also played a role in strengthening compliance, helping authorities block fake invoices worth over 33 billion KZT ($60 million). Meanwhile, the E-Tamga system has processed 250 million electronic invoices and 500 million payments, potentially adding up to 100 billion KZT ($182 million) in annual tax revenue. To combat illicit trade, the authorities seized more than 1 million liters of alcohol, 6.6 million cigarette packs, and 37,000 tons of petroleum products in 2024, preventing estimated tax losses of over 7 billion KZT ($12.7 million). As The Times of Central Asia previously reported, Kazakhstan’s new Tax Code, raising the value-added tax (VAT) from 12% to 16%, is set to take effect in 2025.