Entrepreneurship - The Times Of Central Asia

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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.

Entrepreneurship

Kyrgyzstan Launches Registry of Reliable Entrepreneurs

The Ministry of Economy and Commerce of Kyrgyzstan has opened applications for a newly established Registry of Reliable Entrepreneurs, aimed at promoting transparent and responsible business practices. According to officials, companies listed in the registry will receive a range of incentives and benefits from the state. The registry is open to all eligible businesses, including large companies and individual entrepreneurs operating under patent regimes. To qualify, applicants must meet several criteria: At least three years of operational history No outstanding debts related to taxes or social contributions Timely payment of wages at or above the industry average Compliance with labor laws and standards A clean criminal record for company leadership in relation to economic offenses An Official “White List” of Trusted Businesses The Chamber of Commerce and Industry (CCI) of Kyrgyzstan, which has experience in compiling similar business listings, has been tasked with managing the registry. “The Registry of Reliable Entrepreneurs is an official list of companies and individual business owners recognized by the state as trustworthy, honest, and socially responsible. In other words, it serves as a white list of the best representatives of business operating transparently and legally,” the CCI stated. Applications must be submitted by August 5, 2025. A joint commission comprising representatives from the Ministry of Economy and the CCI will review applications and issue decisions accordingly. Incentives for Registered Businesses Business leaders say inclusion in the registry will enhance corporate reputation, foster trust among customers and government agencies, and encourage ethical business practices. “The registry encourages businesses to operate honestly, comply with laws, and contribute to the country’s economic development,” noted one participant. In addition to reputational benefits, companies listed in the registry will enjoy several practical advantages: Exemption from government inspections for up to three years Priority service at tax offices Free advertising slots on national television during designated times Complimentary participation in international exhibitions, trade fairs, and forums organized by the Kyrgyz government Moving from Private to State-Backed Recognition Previously, similar registries were compiled only by private initiatives. Business associations, including the CCI itself, created so-called “elite lists” funded through membership fees and shared with potential foreign partners to facilitate business cooperation. Unlike those earlier efforts, the new government-backed registry is free of charge and formally recognizes businesses that operate transparently and in full compliance with Kyrgyz law.

Small Business

In Kyrgyzstan, 13,000 Low-Income Families Receive Funds to Launch Businesses

Over the past two years, 13,333 families in Kyrgyzstan living below the subsistence level have signed social contracts with the state. Through this initiative, each family received an interest-free loan of $1,700 to start a small business. According to the Ministry of Labor, the social contract program is designed to help families break the cycle of poverty by providing both start-up capital and practical support. Recipients use the funds to establish businesses, engage in subsistence farming, or purchase tools and equipment. In addition to financial assistance, the program offers training and consulting in sustainable agriculture and income-generating practices. How the Program Works Participants can use the funds to acquire equipment, materials, and other business essentials. The initiative has supported the creation of sewing workshops, food production facilities, apiaries, and small-scale poultry farms. Many recipients now produce honey, natural juices, felt goods, and meat products. The program is open to both new ventures and the expansion of existing microbusinesses. Specially trained consultants guide participants through the process of launching and managing their businesses, helping to increase long-term viability. Results and Regional Reach Although the social contract program was launched five years ago, its most significant impact has been seen in the past two years. More than 13,000 families have become self-sufficient and no longer require government aid. The majority of successful projects have emerged in Kyrgyzstan’s southern provinces, particularly Jalal-Abad and Osh, where rural entrepreneurship has rapidly expanded. Government data indicates that over 280 different products have been developed through the program. While most are sold domestically, a small number are now being exported abroad. This social contract initiative is a cornerstone of the government’s strategy to combat poverty and promote self-employment. Authorities emphasize its role in stimulating economic activity in rural areas and encouraging entrepreneurship among vulnerable populations.

Entrepreneurship

Kazakhstan’s Youth Face Barriers to Entrepreneurship

A recent analysis by the analytical portal Ranking.kz reveals a concerning stagnation in youth entrepreneurship in Kazakhstan. Despite government rhetoric promoting innovation and small business, the number of young individual entrepreneurs has remained nearly flat over the past two years. Youth Entrepreneurship by the Numbers As of the end of Q1 2025, Kazakhstan recorded 736,100 individual entrepreneurs (IE) under the age of 35. Of these, 698,900 are active. The growth rate over two years is just 0.2%, signaling stagnation rather than progress. The decline in young entrepreneurs' share of the total business landscape underscores this trend. In 2023, they made up 50.9% of all active IEs; by 2025, that figure dropped to 47.3%. According to the National Statistics Bureau, today’s young entrepreneur in Kazakhstan is more likely to be a woman (55.4%) than a man (44.6%). Urban residents dominate the demographic, comprising about 75.3% of the total, while rural entrepreneurs represent only 24.7%. Sectoral Growth and Decline Trade remains the leading sector for young entrepreneurs, employing 303,300 individuals, though it saw no growth over the past year. The most significant expansion occurred in transportation and logistics, which grew by 90.1% to 49,700 entrepreneurs. Construction also showed positive movement, with a 10.7% increase, totaling 21,000 entrepreneurs. In contrast, other sectors experienced contraction: agriculture dropped by 25.1%, manufacturing by 11.9%, and real estate by 2.8%. These declines suggest a shift away from traditionally accessible sectors for new entrepreneurs. Geographically, growth was concentrated in major urban centers. Almaty leads with 121,200 active young entrepreneurs, followed by Astana (89,500) and Shymkent (62,100). Modest gains were also observed in the Almaty, Kostanay, Pavlodar, and North Kazakhstan regions. The Ulytau region registered the lowest number, with just 6,700 young individual entrepreneurs. Barriers to Growth The Atameken National Chamber of Entrepreneurs' 2024 "Business Climate" rating provides insight into regional variations in the ease of doing business. Entrepreneurs in Shymkent, Kyzylorda, and Ulytau reported the most favorable conditions. Conversely, Astana, Pavlodar, and North Kazakhstan ranked lowest. Key challenges cited by entrepreneurs include: High tax burdens (44% of respondents) Excessive bureaucracy and a complex licensing system (43.1%) Frequent inspections by regulatory authorities (42.4%) Corruption, especially in land allocation and public procurement These issues are reflected in the National Bank's 2025 Q1 business sentiment survey, where 31.4% of respondents cited taxes as the primary obstacle, while 30% pointed to broader economic conditions and high competition. Despite a vibrant and youthful potential workforce, Kazakhstan’s business environment continues to present structural challenges that deter innovation and sustainable growth. Addressing these barriers will be critical if the country is to harness its demographic dividend and support the next generation of entrepreneurs.

Entrepreneurship Business Support Start-ups Training

Success of Kazakhstan’s JobEscape Start-up

Kazakhstan’s largest venture fund, Tumar Venture LP, whose key investors are the World Bank and the Kazakh Ministry of Digital Development, Innovation and Aerospace Industry, has invested a further 250 thousand US dollars in the Kazakh start-up JobEscape. As announced by the Ministry of Digital Development on 17 June, the total investment in the project now stands at 450 thousand US dollars. JobEscape is a platform that facilitates the acquisition of new skills required to start a freelancing career, through the provision of solutions unique to freelancers and career changers, access to training and a wide range of AI tools. A global project, JobEscape has users from the USA, Canada, Australia, and European countries. Regarding funding, Aslan Sultanov, CEO of Tumar VF, stated: “We invested in JobEscape in the last round and have seen the project grow from literally $10,000 in monthly revenue to almost $1 million in annual revenue. Seeing this dynamic rise, we are confident that the start-up has the potential to grow into a billion-dollar company with roots in Kazakhstan. We are pleased to support the team in creating such a global initiative.” Similarly encouraged by the platform’s development, Miras Sovetov, CEO and co-founder of JobEscape, said: “At the moment, the company’s annual revenue is already close to $1 million. The goal is to grow to US$6 million in 2025. The product is now being widely used in Western markets due to the rapid development of products in the field of AI. Investments in this round will help the company increase its customer base and increase the number of AI tools on the platform. Investors from the UAE and Azerbaijan are already entering the project, which confirms its competitiveness in the global market. The next step will be raising money from American funds for further growth and potential exit (sale of the start-up).”