Entrepreneurship - The Times Of Central Asia

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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.

Entrepreneurship

EBRD Launches Online Mentoring Platform for Entrepreneurs in Tajikistan

Small and medium-sized enterprises (SMEs) in Tajikistan have a new avenue of support: the European Bank for Reconstruction and Development (EBRD) has launched an online platform offering mentoring and professional consultations. The initiative is funded by the Government of Switzerland. A Global Community for Tajik Entrepreneurs The new platform, MicroMentor.tj, connects Tajik business owners with a global network of more than 420,000 entrepreneurs and 120,000 mentors across 180 countries. Available in six languages, including Russian, the service is free and accessible to entrepreneurs even in remote regions of Tajikistan. The platform aims to expand opportunities for SMEs, foster innovation, support business development, and generate employment. Promotion of the platform within the country is supported by local partner Shedevr, headed by Muboriz Subkhonov. Mentoring as a Growth Tool The EBRD has long supported SMEs not only through financial instruments but also via non-financial services such as mentoring, sector-specific consultations, training, and educational events. According to the bank, 77% of entrepreneurs who engaged actively with mentors reported increased revenues. The new platform builds on the Mentoring for Women Entrepreneurs program, which supported more than 100 participants from Dushanbe, Khatlon, Sughd, and Gorno-Badakhshan Autonomous Oblast (GBAO), with guidance from 50 mentors from Kazakhstan, Kyrgyzstan, and Armenia. Over a nine-month period, 108 mentor-mentee pairs were formed. Nearly all participants reported tangible outcomes: 95% improved their business skills 93% expanded their businesses 90% created new jobs EBRD Updates Strategy for Tajikistan Coinciding with the platform’s launch, the EBRD approved a new country strategy for Tajikistan through 2030, prioritizing structural reforms, private sector development, and sustainable growth in energy, transport, and urban infrastructure. “The new strategy reflects our commitment to supporting Tajikistan’s economic development through a comprehensive approach combining financial resources, policy dialogue, and technical assistance,” the EBRD press service stated. The bank plans to support projects that enhance competitiveness and foster technological independence. To date, the EBRD has invested more than €1 billion in Tajikistan’s economy across 185 projects. According to the latest Regional Economic Prospects report, the EBRD forecasts Tajikistan’s GDP growth at 7% in 2025 and 5.7% in 2026. Key drivers include infrastructure investments, private sector expansion, and advancements in digital technologies and energy. The new strategy integrates investment, advisory support, and regulatory reform to create a more favorable business environment for Tajikistan’s growing economy.

Entrepreneurship

Kyrgyz Authorities Introduce Incentives for Businesses to Avoid Inspections

The Ministry of Economy and Commerce of Kyrgyzstan has announced that companies included in the newly created Register of Conscientious Entrepreneurs will receive a range of state-backed privileges, including financial incentives and regulatory relief. “The Register of Conscientious Entrepreneurs is an official list of companies and businesspeople recognized by the state as reliable, honest, and socially responsible. In other words, it is a kind of ‘white list’ of businesses operating transparently and lawfully,” the ministry stated. Officials explained that the register is designed to support ethical entrepreneurship, strengthen reputations, and increase trust from clients, partners, and the state. Inclusion is expected to encourage lawful conduct and promote contributions to Kyrgyzstan’s economic development. Businesses listed in the register will be eligible for several benefits, including free advertising airtime on state television channels, priority service at tax authorities, and free participation in international exhibitions and trade fairs. Notably, they will also be exempt from inspections by supervisory bodies for a period of three years, except for certain audits conducted by the State Tax Service. Additional incentives include access to preferential financing through state-backed lending programs, the right to display a government-issued quality mark, and official confirmation of reliability. To qualify for the register, businesses must meet several criteria: Operate for at least three years; Pay taxes and insurance contributions fully and on time; Have no debts to the state; Provide decent wages to employees (no lower than the sector average); Demonstrate annual growth of at least 5% in taxes and budget contributions; Comply with labor rights regulations; Have no convictions for economic crimes. An interdepartmental commission met earlier this week to evaluate applications. Of the 48 businesses that applied, only a few were denied entry into the register.

Entrepreneurship

Kazakh Entrepreneur in Paris Launches Perfume Inspired by the “Kiz-Jibek” Epic

An ethnic Kazakh living in Paris has launched a perfume called Kiz-Jibek on the French market. Its founder, Nurzhan Tolegen, was born in China’s Ili Kazakh region and grew up in Kulja before eventually settling in the French capital. “I am the grandson of a nomadic people. My grandparents left their homeland during the civil war, carrying with them the soul of Kazakhstan etched into their stories, their songs, and their memories. Yet I had never set foot on those vast steppes whose grandeur my mother, a professor of literature, so often evoked,” he shares on his personal website. [caption id="attachment_35686" align="aligncenter" width="466"] Nurzhan Tolegen; image: www.tolegenparis.com[/caption] In 2021, Nurzhan traveled to Kazakhstan for the first time, spending a month reconnecting with his ancestral homeland. Those four weeks felt like a rebirth for him and marked a turning point in his life. Returning to France, he established a luxury perfume house, Tolegen Paris: a tribute to both his surname and to a heroic figure celebrated in a 16th-century Kazakh epic. In May 2025 he introduced Kiz-Jibek, describing it as “a fragrance honoring eternal love” and “a scent laced with wormwood.” The Kiz-Jibek epic, a cornerstone of Kazakh cultural heritage, reflects the values of traditional society. It emphasizes unity and loyalty to the homeland while exploring universal themes of love, virtue, honesty, and beauty. Through the character of Kiz-Jibek, one encounters the timeless image of the Kazakh woman—gentle yet resilient, modest yet dignified. [caption id="attachment_35688" align="aligncenter" width="624"] The epic characters Kiz-Jibek and Tolegen[/caption] For over five centuries, Kazakhs have sung the tale of Kiz-Jibek. Its central figures—Bazarbai, Tolegen, Kiz-Jibek, and Sansyzbai—are believed to have lived in history, with the story unfolding along the Ural River among the Jagalbaily tribe. In both the epic and the famous film, Tolegen is treacherously slain by Bekezhan, after which Kiz-Jibek, devastated by grief, throws herself into the river.