Small and medium business hits 40% of Kyrgyz GDP

Kyrgyzstan Materials 14 January 2013 17:09 (UTC +04:00)

Small and medium businesses have attained a 40% share of the Kyrgyz GDP, KyrTAG reported, referring to the draft Sustainable Development Strategy of the Kyrgyz Republic for 2013-2017.

"Small and medium entrepreneurship development in Kyrgyzstan is far from an adequate level", the project says. "The contribution of small and medium business is over 40% of GDP. Around 15% of the total number of the employed population is employed in this sector. But this sector is a major employer in developed countries and it accounts for 60-80% of GDP in them".

Small and medium enterprises are mainly engaged in the mediation sector (trade and services) as opposed to the manufacturing sector in Kyrgyzstan. Development as such does not aid economic recovery. Rather, it leads to inefficient use of natural, human, intellectual and other resources.

According to the document, the most problematic issue of developing small and medium-sized businesses is their competitiveness against the few individual large companies in the country that have the necessary production, human and scientific potential.

"The volume of foreign direct investment in the development of small and medium enterprises has been shrinking over the past three years," the strategy document said. "In 2011, foreign direct investment volume fell by 15%".