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DEVELOPMENT OF SMEs IN CENTRAL ASIA

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Title: DEVELOPMENT OF SMEs IN CENTRAL ASIA


1
DEVELOPMENT OF SMEs IN CENTRAL ASIA
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  • UNECE Conference on SPECA
  • Dr. Antal Szabó, Regional Adviser on
    Entrepreneurship and SMEs
  • UNECE

2
SMEs IN ECONOMY
  • Stimulate private ownership entrepreneurial
    skills
  • The SME sector forms the backbone of the market
    economy
  • They are flexible could quickly adapt to
    changing market demands
  • General employment

3
SMEs IN ECONOMY
  • SMEs contribute to alleviation of poverty
  • They help diversify the economic activities and
    contribute to exports trade
  • SMEs contribute to regional local development
    and
  • SMEs contribute to CB-co-operations facilitate
    good neighbouring relations.

4
SMEs IN GLOBALIZING WORLD
  • The core of political and economic transformation
    of any CITs is the creation of private SME sector
  • 8.5 million firms from the 11 million SMEs in
    CITs are micro-enterprises
  • THINK GLOBAL - ACT LOCAL

5
EFFECT OF GLOBALIZATION CITs
  • new opportunities for expansion and growth by
    taking advantage of international market
    possibilities
  • growing economic globalisation brings competitive
    challenges and threats

6
CATEGORIES OF THE SME DEVELOPMENT
  • Countries making rapid progress (V4, 3 BALTIC
    STATES EE, LV, LT, SL CR
  • Countries at an intermediate stage of transition
    (BG RO, 3 CISs COUNTRIES KY, RF UZ)
  • Countries making slow progress with less
    commitment (SEE, majority of CIS)

7
DEFINITION IN AZERBAIJAN
  • In Small enterprises the number of employees less
    than
  • 50 - industry other productive sectors
  • 25 construction power engineering sphere
  • 25 - science education sphere
  • 15 - transport, trade services
  • No definition of medium-sized companies

8
DEFINITION IN KAZAKHSTAN
  • In Small enterprises the number of employees no
    more than 50
  • Assets are not exceeding 60,000-fold monthly
    estimated index (in 2002 KZT 823).
  • No definition for medium-sized enterprises.

9
DEFINITION IN KYRGYZSTAN
  • In Small enterprises the number of employees less
    than
  • 50 in production sphere and
  • 15 in non-production sphere.
  • Net turnover up to KGH 500,000
  • No definition for medium-sized enterprises.

10
DEFINITION IN TAJIKISTAN
  • In Small enterprises the number of employees less
    than
  • 50 in industry and construction spheres
  • 15 in other economic activities
  • No definition for medium-sized enterprises.

11
DEFINITION IN TURKMENISTAN
  • In Small enterprises the number of employees less
    than
  • 50 in production sphere,
  • 10 in wholesale enterprises and enterprises
    deriving revenues from intermediary supply
    activities
  • 25 in other economic activities.
  • No definition for medium-sized enterprises.

12
DEFINITION IN UZBEKISTAN
  • In Micro-enterprise number of employees less than
    10 in industry 5 in tradeservices
  • In Small-enterprise less than 40 in industry,
    20 in construction, 10 in retail trade other
    non-production spheres
  • In Medium-sized enterprises less than 100 in
    industry, 50 in construction, 30 in agricultures,
    wholesale trade catering 20 in retail trade
    other non-production spheres

13
NUMBER OF INDIVIDUAL ENTREPRENEURS in 2001
  • AZERBAIJAN 106.880
  • KAZAKHSTAN n.a.
  • KYRGYZSTAN 111.295
  • TAJIKISTAN 70.050 with incorporated
    enterprise
  • TURKMENISTAN n.a.
  • UZBEKISTAN 279.050

14
NUMBER OF INCORPORATED ENTERPRISES in 2001
  • AZERBAIJAN 57.100
  • KAZAKHSTAN n.a.
  • KYRGYZSTAN 20.969
  • TAJIKISTAN 70.300 with individual
    entrepreneurs
  • TURKMENISTAN n.a.
  • UZBEKISTAN 201.890

15
INDEX OF SME DEVELOPMENT
  • Complex economic indicator, which incorporates
  • share of private ownership
  • share of SMEs in GDP
  • share of the labour force of SMEs in the total
    labour force of a country, expressed in terms of
    and/or GDP per capita

16
INDEX OF SME DEVELOPMENT
  • AZERBAIJAN 31
  • KAZAKHSTAN n.a.
  • KYRGYZSTAN 42
  • TAJIKISTAN n.a.
  • TURKMENISTAN 37

17
DECLARATION ON SMEs
  • BOLOGNA CHARTA June 2000
  • CEI DECLARATION ON SMEs
  • 24 November 2000, Budapest
  • EUROPEAN CHARTER OF SMEs
  • June 2000, Santa Maria de Feira
  • EXPANDING THE CHARTER April 2002 Maribor
  • BSEC DECLARATION ON SMEs September 2001,
    Istanbul

18
NEW DECLARATION ON SMEs
  • CENTRAL-ASIAN OR CEO DECLARATION ON SMEs?
  • 2005? ALMATY-BISHKEK-BAKU-TASHKENT-TEHERAN?

19
ECE-ESCAP JOINT PROJECT
  • Sub-regional Workshop on Training of Trainers in
    Management of Small and Medium Sized Enterprises
    (SMEs) in Central Asian and Caucasian Economies
  •  
  • 11-14 May 1999
  •  
  • Alatau Resort, Kazakhstan

20
ECE/ESCAP PROJECT PROPOSAL
  • DEVELOPMENT OF ENTREPRENEURSHIP AND SME SECTOR
    IN THE SPECA REGION

21
AIM OF THE PROJECT
  • REVIEW OF NATIONAL SME POLICIES SUPPORT
    PROGRAMMES
  • DEVELOPMENT OF NATIONAL SME DEVELOPMENT MODELS
  • DEVELOPMENT OF SME SUPPORT INFRASTRUCTURE IN THE
    REGION
  • REDUCING POVERTY BY MICROCREDIT FACILITIES
    ASSIST IN SETTING UP OF CREDIT GUARANTEE
    FACILITIES
  • CREATION OF A REGIONAL ENTREPRENEURSHIP
    DEVELOPMENT CENTRE
  • PROMOTE YOUTH ENTREPRENEURSHIP

22
  • GLOBAL YOUTH SYNERGY SUMMIT 2004
  • "Opportunities - Prosperity - Security"
  • 29 January - 1 February 2004,
  • Afrosiyab Palace Samarkand - UZBEKISTAN
  • (hosted by Uzbekistan Youth Bank, BPW Uzbekistan
    UNECE)

23
FORUM ON SMEs
  • Forum on SMEs Policies in CITs
  • 2 June 1999 CZECH REPUBLIC
  • 1 November 2000 HUNGARY
  • 23 October 2001 POLAND
  • 24 October 2001 BELARUS
  • 19 March 2003 CROATIA SLOVENIA
  • 31 March 2004 ROMANIA SLOVAKIA

24
EXPERT MEETING ON GOOD GOVERNANCE FOR SMEs 1-2
April 2004
  • review corporate governance practices in advanced
    market economies, the new EU candidate countries
    as well as in CITs
  • analyze the models of the SME-sector governance
    in associated EU countries and economies in
    transition and
  • explore the situation at the micro-level, how do
    the SMEs understand corporate governance, what
    are their problems and what governments and
    non-governmental organizations can do to help
    them.

25
Please contact us
  • Dr. Antal Szabó
  • Regional Adviser on Entrepreneurship and SMEs
  • Phone (41 22) 917 2471
  • Fax (41 22 917 0178
  • antal.szabo_at_unece.org
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