Competitiveness of domestic business - main task of country's economic policy
A range of different instruments for support of entrepreneurs starting from indirect instruments to direct state support has been developed in the world. The main purpose of such measures is both creation of favorable business climate and targeted support of some business types and directions important for a certain country.
Kazakhstan has paid special attention to the development of business since gaining independence. The Head of the State has emphasized and emphasizes the role of this sector of the economy with great development potential in provision of forced economic development of the country, Head of the Center for Strategic Research and Analysis of the Administration of the Kazakh President Maksat Mukhanov noted.
Over the past period of time six state programs and a number of sectoral programs somehow touching upon the issues of domestic business development have been realized.
Both qualitative and quantitative characteristics of the Kazakh business were improved due to the goal-oriented work conducted at all stages of the state policy realization.
Thus, the number of registered small and medium business increased over four times reaching one mln entities in last ten years. The production volumes of small and medium business increase. The business activity in the country doesn't decrease despite the world economic situation. Production of goods and service of small and medium business entities increased by 4.8% in January-May, 2010 compared to January-May last year.
Positive results of the system work on business climate improvement resulted in the dynamics of assessments of foreign experts - Kazakhstan improved its position in the World Bank's "Doing Business" ratings (from 71st place in 2008 to 63rd place in 2010).
The further work on this direction is aimed at Kazakhstan's entering the top 50 and later top 30 countries with the most favorable business climate.
In recent years Kazakhstan has undertaken many efforts on entrepreneurship development. In particular, system steps on administrative barriers reduction were taken.
On January ,1 2009 the Laws "On competition" and "On amendments to some legislative acts of Kazakhstan on the issues of competition" were brought into force. The main amendments of the Law on competition are aimed at stimulation of business activity, limitation of negative governmental intervention, modernization of forms and methods of restriction of monopolistic activity and prevention of unfair competition.
Last year the Law "On private entrepreneurship" was amended. The new changes were aimed at optimizing the work of regulatory authorities, increasing transparency of their law-making activity.
At the present stage of development the formation of competitive SMEs is crucial for further strengthening of the competitive advantages of Kazakhstan. In the next five-ten years Kazakhstan will have to implement the task of diversification and development of innovative economy. A new stage of economic development requires new approaches to strengthening the small business sector.
The current economic policy of supporting business includes the following:
- - financial support of small and medium businesses through "Samruk-Kazyna" National Welfare Fund and specialized Fund for Entrepreneurship Development "Damu";
- - reduction of administrative barriers by means of improving the licensing system and reforming the regulatory system;
- - introduction of new forms of business support, such as development of public-private partnership, promotion of exports of Kazakhstan's entrepreneurs, improvement of business procedures.
According to President of Kazakhstan Nursultan Nazarbayev, entrepreneurship, which is a driving force of economic modernization, will be a core of Kazakhstan's economy diversification. Thus the key task of the strategic plan of Kazakhstan's development till 2020 is the formation of multi-industry competitive domestic business.
Almost all documents, currently being developed in the country, focus on entrepreneurship development. They are Business Road Map-2020, Production-2020, Export-2020 and State Program of Forced Industrial Innovative Development.
So, the support of entrepreneurship becomes a major goal of the country's economic policy.
In this context it seems that the business itself must be improved and become more active, more effective, creative and socially responsible. The competitiveness of domestic companies must be increased through active use and introduction of best corporate practices and technologies of management, marketing and strategic planning.
In this regard the government should provide support in reducing the so-called "information asymmetry", when the business for a variety of objective and subjective reasons is not sufficiently aware of the possibilities of different niches, areas, directions of entrepreneurship, new approaches and management technologies, financial and marketing tools, business strategies.
This is especially true today when the world economy is undergoing significant change and transformation. Such periods open global opportunities and prospects for those who seek and believe in themselves.
In fact there are many niches for business even amid crisis. For instance, business tycoon Richard Branson (Virgin Group) considers the Internet gives plenty of opportunities to earn money.
On Internet everything depends on the person, his creativity and abilities. This space is characterized by the absence of administrative barriers and strict regulation.
Therefore, raising competitiveness, implementation of strategic goals and search for new global opportunities should be the motto of domestic entrepreneurship in the modern conditions.