small and medium businesses - The Times Of Central Asia

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Small Businesses Employ Over Half a Million People in Kyrgyzstan

Small and medium-sized enterprises (SMEs) play a vital role in Kyrgyzstan's economy, employing 585,000 people and contributing significantly to various sectors, according to the National Statistical Committee (NSC). As of 2024, Kyrgyzstan has 18,139 registered small businesses paying taxes. SMEs are particularly active in agriculture and manufacturing, with private entrepreneurs producing 65% of the country’s agricultural output and 26% of its industrial goods. Additionally, much of the hotel and restaurant industry is owned and operated by medium-sized private businesses. Most of these enterprises are concentrated in the Bishkek and Chui regions, where 80% of the country’s small and medium-sized businesses operate. The Kyrgyz government has taken steps to encourage entrepreneurs to operate transparently and contribute to the formal economy. In the summer of 2024, the voluntary patent system was abolished and replaced with a requirement for businesses to use cash registers. To incentivize compliance, businesses with an annual turnover of up to KGS 15 million ($170,000) are exempt from taxes if they purchase cash registers, submit reports to the State Tax Service, and pay insurance and pension contributions. For businesses with a turnover between KGS 15 million and KGS 30 million ($340,000), a reduced tax rate of 0.5% on turnover is applied. Small and medium-sized businesses are not only a backbone of Kyrgyzstan’s economy but also a key source of job creation. Government initiatives to formalize SME activity and simplify taxation are expected to further bolster the sector’s growth and contribution to the national economy.

Women Empowerment small and medium businesses Women's rights Women-owned Enterprises Legislation

Kyrgyzstan to Enshrine Concept of “Women’s Entrepreneurship” in Law

Kyrgyzstan's Jogorku Kenesh (parliament) has approved, in its third reading, a bill to introduce the term “women’s entrepreneurship” into the country’s Law on the Protection of Entrepreneurs’ Rights. The amendments, proposed by deputies Kamila Talieva, Eldar Abakirov, Daniyar Tolonov, Taalaibek Masabirov, Elvira Surabaldieva, and Nilufar Alimzhanova, aim to recognize women entrepreneurs as a distinct category within small and medium-sized businesses (SMEs). The initiative is expected to drive the growth of small and microbusinesses in Kyrgyzstan, following the example of international practices. Employment Disparities According to the explanatory note accompanying the bill, the employment rate for working-aged women in 2020 was 43%, compared to 70.9% for men. In urban areas, women’s employment stood at 46.8%, while in rural areas, it dropped to 40.6%. Additionally, women comprise 69% of the economically inactive population, with 97% of them engaged in household work. A Path to Economic Empowerment The bill’s authors emphasize that legislative recognition of women’s entrepreneurship will expand access to state support for women-led businesses. This could enhance women’s participation in the business sector, improve their economic standing, and contribute to the overall wellbeing of families and society. The proposed measures aim to address gender barriers, encourage women’s economic activity, and create favorable conditions for their full participation in the development of SMEs. Lawmakers believe such changes will not only bolster economic stability but also strengthen social cohesion. A Rare Legislative Step Kyrgyzstan’s effort to enshrine women’s entrepreneurship in law is rather rare in the global context. While other countries have some framework to support entrepreneurship among women, provisions are often more vague. For example: – In Uzbekistan, the Law On Guarantees of Freedom of Entrepreneurial Activity provides broad protections but does not specifically address women’s entrepreneurship. – In Russia there is no legal definition of women’s entrepreneurship, though various programs support women in business. – In the United States the Women’s Business Ownership Act of 1988 offers significant support to women entrepreneurs but does not explicitly define the term. By taking this legislative step, Kyrgyzstan positions itself as a leader in fostering gender-inclusive economic policies, potentially serving as a model for other nations.

Export/Import Agriculture Technology small and medium businesses Agricultural Produce

Kazakhstan’s Greenhouse Bananas: A Southern Success Story

A pioneering greenhouse in Kazakhstan's Turkestan region has begun producing 1,000 tons of bananas annually, marking a significant milestone in the country's agricultural diversification efforts. The project, led by GenGroupKazakhstan, combines innovative technology and tropical crop expertise to make banana cultivation viable in the region. GenGroupKazakhstan, known for its modern greenhouse construction, launched its first banana greenhouse on a five-hectare plot in June 2023. Drawing on techniques used in Turkey, the company harvested its first crop in May 2024. Building on this success, the company plans to expand its operations significantly. A new greenhouse complex spanning six hectares will focus on producing 3,000 tons of tomatoes and 130 tons of strawberries annually. Construction of the facility is expected to be completed by the end of 2025. In addition, GenGroupKazakhstan aims to cultivate mangoes, avocados, and blueberries across 10 hectares of open ground, further diversifying its portfolio of high-value crops. Vice Minister of Agriculture Azat Sultanov noted that growing bananas in Kazakhstan, while potentially profitable, presents unique challenges. Unlike tropical countries like Ecuador or Brazil, where bananas grow naturally with minimal input costs, Kazakhstan’s climate necessitates substantial investments in greenhouses, electricity, heating, fertilizers, and plant protection products. These requirements make banana production here a more resource-intensive endeavor.

Regional integration MSMEs small and medium businesses Turkic Investment Fund Women entrepreneurs Organization of Turkic States Digitalization

Empowering Trade and Women Entrepreneurs: Kazakhstan’s Digital Leap for the Turkic States

The head of the Presidium of the National Association of Women Entrepreneurs of Kazakhstan (ASMAR), Lazzat Ramazanova, who currently chairs the Council of Women Entrepreneurs of Turkic States, has reported on the development of a single digital ecosystem for business in the five countries which form the Organization of Turkic States (OTS). This platform is expected to expand international trade with countries outside of the Organization. This year, Kazakhstan chairs the Council of Women Entrepreneurs of Turkic States, which operates under the OTS and includes five member countries: Kazakhstan, Kyrgyzstan, Azerbaijan, Turkey, and Uzbekistan. Three more countries - Hungary, Northern Cyprus, and Turkmenistan - are represented in the Organization with the status of observer states. One of the goals of Kazakhstan's chairing of the OTS was to strengthen business ties between Turkic states. To this end, the Turkic Business Hub initiative was implemented, an online platform that will become an important element of integration and cooperation in the region. Speaking at the close of the meeting in Astana, Lazzat Ramazanova told those in attendance: “Today, within the framework of the General Assembly of Women Entrepreneurs of the Turkic World, an ambitious initiative was put forward to create a unified digital platform for business. Kazakhstan was the initiator and implementer of this idea, as our country is now among the top 25 most digitized countries. The platform has already been developed, and in Kazakhstan, we are already working with our ministries on the integration of info-systems. Now, we will work with the governments of Turkic states so that the same integration takes place with their info-systems. In other words, the software has been created, and we are working to bring other countries into it.” The main advantage of a Turkic Business Hub is it ensures business security when choosing a partner in a given country. This is because when a user of the platform registers as a potential participant in trade relations, all information about them as a business entity is collected. Artificial intelligence automatically scans the fiscal (tax and customs) authorities and runs the business' credit history through the hub's integration with the databases of banks. The banks have their own interest in this system, since using it they can find clients and borrowers who have passed strict compliance checks. AI can also monitor the presence or absence of lawsuits from former partners of the entity that is attempting to register. “In the case of detection of negative information, the entity is denied registration, i.e., from there start, there will be no 'scam' companies or unscrupulous counter-parties on the platform," Ramazanova explained. "They will immediately be 'canceled' by the artificial intelligence based on the data from tax, customs, and other state services. But the most important thing is that in case of rejection, AI will send such the rejectee a complete summary of the reasons why they were denied registration, so the business will know what they need to correct to join the system. Once business entities that have no...

International Finance small and medium businesses ADB Banking Finance

ADB Issues First Bond Denominated in Kyrgyzstan’s Currency

The Asian Development Bank (ADB) has raised about $5 million from its first bond issued in Kyrgyzstan’s currency, the som. Arranged by Standard Chartered Bank and fully subscribed by Record Currency Management, the 3-year bond issue carries a 10.5% coupon and mitigates currency risk for an ADB project in Kyrgyzstan. The project supports micro and small enterprises (MSEs), with at least 40% of the loan channeled to women-led or owned MSEs. The project is delivered through the local Kompanion Bank, which has a strong presence in rural areas and experience supporting women entrepreneurs nationwide. ADB Assistant Treasurer Jonathan Grosvenor commented: “ADB’s maiden Kyrgyz Som bond further expands our local currency footprint and builds on our efforts to deliver foreign exchange risk mitigation solutions in all of ADB’s developing member countries.” Since Kyrgyzstan joined the ADB in 1994, the bank has committed $2.6 billion in public sector loans, grants, and technical assistance to the country.