N. Zhaksybayeva
Nazarbayev University’s Research Centre for Entrepreneurship
Dr. N. Aljanova
Nazarbayev University’s Research Centre for Entrepreneurship
Professor S. Yousafzai
Nazarbayev University’s Research Centre for Entrepreneurship
N. Kulbatyrov
Nazarbayev University’s Research Centre for Entrepreneurship
Since its independence in 1991, Kazakhstan has embraced entrepreneurship for economic diversification from fossil fuel profits, as demonstrated by its strategic initiatives “Kazakhstan – 2050” and “Kazakhstan – 2025” (Akorda, 2023[1]). Women constitute about 44% of small- and medium-sized enterprise (SME) owners in Kazakhstan in 2022, marking an 11% increase from 2018. Additionally, women-led businesses represent 40% of the country’s GDP (Bureau of National Statistics of Kazakhstan, 2022[2]).
Although the government’s strategies aim to foster an inclusive business atmosphere, they take a gender-blind approach to entrepreneurship policy (Kazakhstan, 2015[3]). Within this context, there has been a significant shift in entrepreneurship policy (Figure 21.1), with the transition from “Business Road Maps BRM-2020” to “Concept-2030” involving a pivot from prioritising sustainable growth to advocating entrepreneurial freedom and a shift from the manufacturing sector towards increasing the number of SMEs (Dodaro, 2023[4]; OECD, 2017[5]). This transition could stem from the move away from a growth model reliant on fossil fuels to one emphasising economic diversification. However, it appears that this shift toward a market-driven strategy overlooks specific gender-related concerns, resulting in a lack of support for women’s entrepreneurship endeavours, which limits development and growth. Despite intentions to promote entrepreneurship in general, such policies may fail to adequately tackle the unique obstacles faced by women entrepreneurs. Additionally, at the policy implementation level, the territorial governance policy fails to synchronise with regional entrepreneurship policies, even though a shift toward urban entrepreneurialism could potentially bolster regional capabilities (OECD, 2017[5]). This underscores the need for a gender-sensitive lens in policy formulation and implementation.
A range of central government initiatives aim at supporting women entrepreneurs, including state subsidy quota systems and reformed loan conditions to improve access to capital (Bertay, Dordevic and Sever, 2020[6]). Such measures promote financial inclusion for women entrepreneurs, addressing sector-specific challenges through transparent conditions for grants or subsidies (Nalyvaiko and Нrytsai, 2021[7]; Olsson and Bernhard, 2020[8]; Petrovich, 2020[9]). In addition, measures are being taken to integrate financial literacy and entrepreneurship education into school curricula, with the aim of cultivating an entrepreneurial mindset, which is particularly important in countries like Kazakhstan, with a need to reduce economic dependence on exploitation of natural resources.
Regional governments, in alignment with central government efforts, can help adapt these policies to local contexts, offering tailored credit and loan options to support women entrepreneurs (ADB, 2019[10]). Such strategic collaboration between central and regional authorities is essential for overcoming financial barriers and creating an ecosystem where women’s contributions can drive economic growth, underscoring the importance of co-ordinated efforts in advancing financial inclusion.
Regional governments play a crucial role in supporting women entrepreneurs (Brush et al., 2019[11]; Welter, 2011[12]). Women entrepreneurs typically have less access to business networks that provide essential information and connections to investors and financial institutions. These networks are crucial for securing investment and venture capital (Brush et al., 2019[11]). Providing networking opportunities forms a crucial part of this regional government-led approach, especially regarding the women’s access to finance (Wang et al., 2016[13]; Lyon, Sepulveda and Syrett, 2007[14]). Moreover, technical assistance programmes, such as training and coaching, contribute to enhancing the skills and knowledge of women entrepreneurs, ultimately improving their chances of success of receiving the financial opportunities (Jing, Song and Le, 2020[15]; Levie et al., 2014[16]).
Women entrepreneurs often encounter obstacles when seeking financial support, particularly concerning loan eligibility criteria. This challenge is particularly pronounced among women operating micro- or small-businesses, such as grocery stores, sewing ateliers or beauty salons, who often struggle to fulfil these requirements. To address this issue, the introduction of quota systems within state subsidies could be a potential solution for opening more opportunities for women entrepreneurs. Furthermore, women entrepreneurs have highlighted the importance of implementing quotas in sectors where women’s participation remains low, such as raw materials production. By addressing loan prerequisites, introducing quota systems, and prioritising gender-sensitive policies, an inclusive environment conducive to economic expansion and the advancement of gender equality can be cultivated.
Women also face barriers within the public procurement system (e.g. gender bias) as the evaluation criteria appears tailored for industries traditionally dominated by men. Navigating this system poses particular challenges for women in sectors where their representation is low. Limited access to networks and mentorship opportunities within the public procurement system was also noted by women entrepreneurs in interviews. Establishing connections and having mentors who understand the intricacies of the process can significantly impact their ability to secure contracts.
It is important for policy makers to address the barriers hindering women’s access to financing and provide information about available resources and support measures in order to release the pivotal role of women entrepreneurs. This can be promoted with gender-oriented financing programmes designed to equip women with the financial resources needed to compete effectively, thereby reducing information disparities and fostering a more inclusive entrepreneurial ecosystem. Transparent and trustworthy government support programmes, with clear criteria and diligent monitoring, are essential for success and credibility. In addition, government can consider instituting quota systems for entrepreneurship funding opportunities. Moreover, education plays a transformative role in empowering future generations of women entrepreneurs. Its role can be favoured by introducing curricula focused on in-demand professional skills and financial literacy.
Nurturing women’s entrepreneurship demands a holistic approach involving policy reform and improved resource accessibility, including regional government actions as well as national policies. By tailoring support to women entrepreneurs’ unique needs, Kazakhstan can foster an inclusive entrepreneurial ecosystem, driving economic growth and addressing gender inequality.
The underlying research for this report was supported by the Ministry of Education Grant, Government of Kazakhstan, Grant No. IRN AP14871324.
[10] ADB (2019), Promoting Women’s Entrepreneurship in Sri Lanka, Asian Development Bank, https://www.adb.org/publications/women-entrepreneurship-sri-lanka (accessed on 22 May 2024).
[1] Akorda (2023), The Strategy for development, https://www.akorda.kz/en/official_documents/strategies_and_programs (accessed on 27 April 2024).
[6] Bertay, A., L. Dordevic and C. Sever (2020), “Gender Inequality and Economic Growth”, IMF Working Papers, Vol. 20/119, https://doi.org/10.5089/9781513546278.001.
[11] Brush, C. et al. (2019), “A gendered look at entrepreneurship ecosystems”, Small Business Economics, Vol. 53/2, pp. 393-408, https://doi.org/10.1007/s11187-018-9992-9.
[2] Bureau of National Statistics of Kazakhstan (2022), National statistics on Entrepreneurship, https://stat.gov.kz (accessed on 27 February 2024).
[4] Dodaro, M. (2023), “Municipal entrepreneurship support policies: convergence or divergence?”, Local Government Studies, Vol. 49/2, pp. 274-293, https://doi.org/10.1080/03003930.2021.1932479.
[15] Jing, L., Z. Song and W. Le (2020), “Entrepreneurial team heterogeneity and innovation: The moderating effect of strategic consensus and team cohesion”, Science Research Management, Vol. 41/12, p. 238.
[3] Kazakhstan (2015), Entrepreneur Code of the Republic of Kazakhstan, https://adilet.zan.kz/kaz/ (accessed on 27 April 2024).
[16] Levie, J. et al. (2014), “Global entrepreneurship and institutions: an introduction”, Small Business Economics, Vol. 42/3, pp. 437-444, https://doi.org/10.1007/s11187-013-9516-6.
[14] Lyon, F., L. Sepulveda and S. Syrett (2007), “Enterprising refugees: contributions and challenges in deprived urban areas”, Local Economy, Vol. 22/4, pp. 362-375.
[7] Nalyvaiko, L. and I. Нrytsai (2021), Gender budgeting as a means of ensuring the gender equality principle, Baltija Publishing.
[5] OECD (2017), Financing SMEs and Entrepreneurs 2017: An OECD Scoreboard, OECD Publishing, Paris, https://doi.org/10.1787/fin_sme_ent-2017-en.
[8] Olsson, A. and I. Bernhard (2020), “Network collaboration for local and regional development - the case of Swedish women entrepreneurs”, International Journal of Entrepreneurship and Small Business, Vol. 41/4, p. 539, https://doi.org/10.1504/IJESB.2020.10033817.
[9] Petrovich, L. (2020), “Gender oriented budgeting as a tool for achieving gender equality”, Публічне урядування, Vol. 2/2.
[13] Wang, J. et al. (2016), “The contribution of self-efficacy to the relationship between personality traits and entrepreneurial intention”, Higher Education, Vol. 72/2, pp. 209-224, https://doi.org/10.1007/s10734-015-9946-y.
[12] Welter, F. (2011), “Contextualizing Entrepreneurship—Conceptual Challenges and Ways Forward”, Entrepreneurship Theory and Practice, Vol. 35/1, pp. 165-184, https://doi.org/10.1111/j.1540-6520.2010.00427.x.