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56 projects for total amount more than 95.2 billion KZT were financed in Almaty under the “Economy of Simple Things” National Program.

Nine more projects for total amount of 25.9 billion KZT are under consideration.

These are projects for sewing clothes, manufacturing of food products, drinks, pharmaceuticals, building materials, furniture, etc. Their implementation is facilitated by the work of the Qoldaý Center of Entrepreneurship, which has actually become a single operator for the implementation of state business support programs in the southern capital. And small and average businessmen of the city, who need government assistance firstly come here. The center provides free consultations to entrepreneurs, including questions on permits and concessional financing under state programs, including the “Economy of Simple Things”.

“Nowadays, our center is doing a lot of work on informing the entrepreneurs of the city about the instruments of state support for business, including possibilities of “Economy of Simple Things” national program,” said Mr. Serik Mamytov, First Deputy General Director of Qoldaý Center of Entrepreneurship.

– All projects are under specially controlled by the administration of the city. And we literally work through each of them manually, do identification of problematic issues and take direct participation in their solution. This program allows small and medium enterprises in Almaty to receive soft loans at a rate of 6% for purchase of fixed assets and replenishment of working capital. “Economy of Simple Things” is aimed at targeted financing of manufacture, substitution of imported goods for Kazakhstan national manufacture (food products, light industry goods, furniture, building materials, etc.). Support is also provided for projects of socio-economic orientation, including construction and reconstruction of educational facilities, student dormitories and kindergartens, and domestic tourism. And businessmen are actively using this opportunity. In the first year of the program implementation, 600 billion KZT was allocated from the republican budget across the country for concessional lending to small and medium business, this year the amount was increased to 1 trillion KZT, said Mr. Askhat Abishev, head of the project support department of the Chamber of Entrepreneurs of Almaty City. As a result, up to the present day, 2,471 projects have been approved for a total amount of 581.5 billion KZT. If we do note that the southern capital is among the leaders in the republic in terms of subsidized projects. One of the participants in the “Economy of Simple Things” program is “Center for Proper Sleep” LLP, which has been on the market for over 15 years and produces mattresses using advanced technologies from environmentally friendly, hypoallergenic materials. The company’s products began to be in demand throughout Kazakhstan, the question arose of expanding the business, and in the end it was decided to purchase its own production base (previously, warehouse premises were rented).

– “We didn’t even expect that for two-week-term the bank would finance us the purchase of a finished production base in the Zhetysu district, Almaty City,” says Mr. Bauyrzhan Ismagambetov, deputy director for company development.

– The conditions are so propitious – a loan was received for five years (maximum term up to 10 years) at 6% per annum. The qualified assistance of the specialists of Qoldaý Center of Entrepreneurship was also a pleasant surprise. They very promptly made an assistance with a technical audit of industrial base that we are buying out in terms of electrical power, sewerage system, gas supply. The Almaty company received a soft loan in June this year. And if to take into account that nowadays 15 thousand mattresses are manufactured here a year and 300 specialists work, then as a result of expansion of business, expected growth in mattresses manufacture makes six times, i.e. up to 90 thousand pieces, and the number of jobs – by 100 people. Also, in the next year and a half, it is planned to additionally open 30 retail outlets throughout the territory of the republic, bringing their total number up to 80. Another successful example of implementation of this program is “Zerleu” house of exclusive gold embroidery of the author. Aizhan Abduabitova, a professional artist, opened her enterprise back in the early 90s, today 50 highly professional seamstresses and embroiderers work here.

“Every piece of our product is an artwork”, said Mrs. Aizhan Toyhibekovna.

– These are forgotten technologies that me and my masters do recreate, so each costume made by us is exclusive. Our customers are not only from Kazakhstan, but also foreigners. A year ago, the entrepreneur decided to expand her business and to buy out the premises that she rented of 550 sq.m total area. After going through all the necessary procedures: business and sales market assessment, collateral, etc. – a loan of 270 million KZT for a period of seven years was approved. The program “Economy of Simple Things”, according to Mr. Askhat Abishev, has become an important factor in the growth of business in Almaty City. It had obvious effect after implementation, even on the example of one city. New competitive industries are opening up, reducing the country’s import dependence on a wide range of goods and services, hundreds of permanent jobs are being created, and tax revenues to the budget are increasing.

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