Financial problems are experienced by 41% of companies in Kazakhstan
As part of the "Beige Book" project, entrepreneurs from all spheres of SME activity took part in the survey
Based on the results of the interim results of a social survey of entrepreneurs on the impact of the consequences of the pandemic on small and medium-sized businesses (within the framework of the Beige Book project), 41% of the companies surveyed said they were experiencing financial problems. A third of entrepreneurs experience problems with the sale of products, and 45% of manufacturing companies, as a result, production is unstable. The Kapital.kz business information center was informed about this by the press service of the First Credit Bureau.
The survey was organized on the beigebook.kz portal and is provided for all spheres of SME activity.
The quarantine restrictions imposed in connection with the coronavirus pandemic, as expected, negatively affected the country's economy. One third of entrepreneurs have problems with implementation. For 43%, the situation is tolerable, and only 24% have no particular problems.
Problems with implementation immediately affected the stability of the firms and their financial condition. Production is unstable for 45% of respondents. Another 45% are at a tolerable level. And only 10% have no problems.
Financial problems are experienced by 41% of firms. Another 41% have a tolerant situation. And only 18% have no financial problems.
“But there are other factors not related to quarantine restrictions that affect the sale of goods, works and services. First of all, as the logit models show, it is the availability of markets and the presence of administrative barriers. An increase in the market accessibility index by one unit increases the chances of an increase in product sales by 7.8 times. A decrease in the index of administrative barriers by one unit increases the chances of growth in sales of products by 3.6 times, ”the PKB explained.
At the same time, the situation with the availability of sales markets is bad for 30% of entrepreneurs, tolerable for 40% and good for 30%. The situation is worse with administrative barriers: administrative barriers have a negative impact on 78% of entrepreneurs, 22% can tolerate them, and there is no one who is not affected by administrative barriers.
A quarter of small businesses operate in trade
The total number of small active companies grew by 4% over the year
The study authors also noted that the impact of the availability of financing in the current circumstances on the position of entrepreneurs is not so significant. An increase in the financing availability index by one unit increases the chances of sales growth by only 1.07 times.
“This is natural, because the availability of financing has a greater impact on the ability to increase production than on implementation,” the experts noted, adding that this also suggests that state support measures aimed at increasing the availability of financing are not sufficient. Indeed, in the current crisis circumstances, it is more important to expand access to consumers and reduce administrative barriers.
“There are measures for the accessibility of sales markets in government programs, but they do not look adequate to the current state of affairs. Presumably, due to the discrepancy between government support measures and real business problems, their assessment is rather low: 27% of entrepreneurs believe that they are of no use, 51% - that the benefits are insignificant, and only 22% believe that government assistance is very significant ", - indicated in the PCB.
The above conclusions were made on the basis of a preliminary analytical assessment of the questionnaires completed by entrepreneurs.
Перевод статьи:301 группа. Жарасова Сымбат
https://kapital.kz/amp/business/89525/finansovyye-problemy-ispytyvayet-41-kompaniy-kazakhstana.html
Based on the results of the interim results of a social survey of entrepreneurs on the impact of the consequences of the pandemic on small and medium-sized businesses (within the framework of the Beige Book project), 41% of the companies surveyed said they were experiencing financial problems. A third of entrepreneurs experience problems with the sale of products, and 45% of manufacturing companies, as a result, production is unstable. The Kapital.kz business information center was informed about this by the press service of the First Credit Bureau.
The survey was organized on the beigebook.kz portal and is provided for all spheres of SME activity.
The quarantine restrictions imposed in connection with the coronavirus pandemic, as expected, negatively affected the country's economy. One third of entrepreneurs have problems with implementation. For 43%, the situation is tolerable, and only 24% have no particular problems.
Problems with implementation immediately affected the stability of the firms and their financial condition. Production is unstable for 45% of respondents. Another 45% are at a tolerable level. And only 10% have no problems.
Financial problems are experienced by 41% of firms. Another 41% have a tolerant situation. And only 18% have no financial problems.
“But there are other factors not related to quarantine restrictions that affect the sale of goods, works and services. First of all, as the logit models show, it is the availability of markets and the presence of administrative barriers. An increase in the market accessibility index by one unit increases the chances of an increase in product sales by 7.8 times. A decrease in the index of administrative barriers by one unit increases the chances of growth in sales of products by 3.6 times, ”the PKB explained.
At the same time, the situation with the availability of sales markets is bad for 30% of entrepreneurs, tolerable for 40% and good for 30%. The situation is worse with administrative barriers: administrative barriers have a negative impact on 78% of entrepreneurs, 22% can tolerate them, and there is no one who is not affected by administrative barriers.
A quarter of small businesses operate in trade
The total number of small active companies grew by 4% over the year
The study authors also noted that the impact of the availability of financing in the current circumstances on the position of entrepreneurs is not so significant. An increase in the financing availability index by one unit increases the chances of sales growth by only 1.07 times.
“This is natural, because the availability of financing has a greater impact on the ability to increase production than on implementation,” the experts noted, adding that this also suggests that state support measures aimed at increasing the availability of financing are not sufficient. Indeed, in the current crisis circumstances, it is more important to expand access to consumers and reduce administrative barriers.
“There are measures for the accessibility of sales markets in government programs, but they do not look adequate to the current state of affairs. Presumably, due to the discrepancy between government support measures and real business problems, their assessment is rather low: 27% of entrepreneurs believe that they are of no use, 51% - that the benefits are insignificant, and only 22% believe that government assistance is very significant ", - indicated in the PCB.
The above conclusions were made on the basis of a preliminary analytical assessment of the questionnaires completed by entrepreneurs.
Перевод статьи:301 группа. Жарасова Сымбат
https://kapital.kz/amp/business/89525/finansovyye-problemy-ispytyvayet-41-kompaniy-kazakhstana.html