Small business lending in Kazakhstan, Детальна інформація

. Development of venture financing;

. Encouragement of credit partnerships creation, mutual insurance societies (Finansirovanie I kreditovaniye subyektov malogo biznesa,

2001).

Summary.

Thus, we can see, that it is very important to develop investing and financial support of small business in Kazakhstan. Small business needs money to expand their business, buy equipment, employ more workers, that is why the key in developing small business is investment in it.

References.

Finansirovanie I kreditovaniye subyektov malogo biznesa, 2001 http://business.zakon.kz/fincredit/,

Law of Republic of Kazakhstan from 19 July 1997 N 131-1 O gosudarstvennoi poddershke malogo predprinimatelstva (with amendments to this law in

10.07.98 № 283-1; in 26.07.99 № 458-1; in 29.11.99 № 488-1).

2 Goals for receiving a loan.

There are many goals pursued by entrepreneur when he is asking for credit, but not for all purposes it is given. For example, EBRR gives credit for increase in working capital, investments like purchase of real estate, etc.

(Krediti dlya malogo biznesa EBRR , 2001), Kazkomertzbank offer credit for increasing turnover, increasing working capital for further growth, expansion of production or volume of services, purchase of machinery, equipment, row materials, improvement of manufacture, purchase, construction and maintenance of real estate, and other capital investments

(Kreditovaniye, 2001).

In our survey, we conducted an interview with chief accountant of “Oasis” company. This firm was organized in 1997 and busy in selling wholesale trade of medicines, the authorized capital was formed from personal savings, and number of employees is equal to 12. This company took a credit from Centercredit Bank in year 2000. They took a credit in Centercredit

Bank because firstly, they have served in this bank and secondly, there was program on supporting small business, which were conducted by EBRR. The goal of receiving a credit was increasing turnover. With this credit, the company gained 30% income - they made 3 contracts on the total amount of

$19,000. Thus, the company got profit from receiving a credit (Sahauyeva,

2001).

Summary.

Thus, we can conclude, that there are many reasons for the enterprises to give an application to the bank in order to receive a credit, and one of the main reason is investing, i.e. buying an equipment, building. However, banks give credit mainly in order to increase turnover. In our case, the company took credit exactly for this purposes (increasing turnover), and gained a profit.

References.

Krediti dlya malogo biznesa EBRR, 2001 http://www.fund.kz/ebrr_c.html

Kreditovaniye, 2001 http://www.kkb.kz/banking_re/sber/service/06_credit.asp

Sahauyeva Zhanar, 2001, interview

2 Terms for receiving a loan.

A. Necessary documents

There are several documents, which are required in order to receive a credit, they are:

. Application

. Constituent documents

. Registration certificate

. Statistical card