Initiating and implementing an entrepreneurship start-up is a complex decision-making process, where many opportunities and risks need to be analyzed. To help entrepreneurs grow, policymakers should provide a favorable environment that facilitates business rather than creating obstacles. The article investigates the current entrepreneurship barriers in Kazakhstan, identifies the critical factors faced by entrepreneurs, and recommends some suggestions having policy implications. The researchers use a system approach known as the "Thinking Process" to identify the critical factors that hinder entrepreneurship, and determine the causal relationships between these factors. These relationships will help policymakers to create a better environment for starting entrepreneurship in Kazakhstan.
Starting a new business or expanding an existing business is a critical decision-making
process where many qualitative and quantitative factors need to be considered. Starting
entrepreneurship is an investment decision that has serious impacts on business throughput.
The entrepreneurship decision-making process should not be a trial and error process, because
it is expensive and time-consuming.
Kazakhstan, the ninth largest country in the world, contributes to the world economy
through its significant oil and gas reserves and large agricultural sector. Kazakhstan’s
economic growth, to a large extent, is due to huge natural reserves and the economy is
stimulated by oil and gas production. However, the government has declared a policy of
diversification away from oil and gas sector and formation of a middle class in Kazakhstan.
The country has a great market potential which we can evaluate by comparing its per capita
GDP ($7800, in 2004). According to a recent UN report, average monthly earnings for the
population increased by 32% in 2000-02, while unemployment decreased from 13.5% to
9.3%. The country’s economy is expanding and creating many new business opportunities.
The number of entrepreneurships is growing and there are said to be more than 5.5 million
entrepreneurs in the country (Mustafina, 2004). Entrepreneurs are mostly from small business
industries that range from construction, trade, commerce, small-scale manufacturing and
services. |