Regional affiliate of "Entrepreneurship Development Fund "Damu" in South Kazakhstan region led the interim results of the "Business Roadmap -2020" Program implementation for the year 2012.
We asked the director of the South-Kazakhstan region affiliate Samat Ahilbekov to tell us about what work has been done under that Program, as well as about financial and non-financial programs of "Damu" Fund aimed at supporting entrepreneurship.
- Samat Muhatovich, tell us what results were achieved thanks to the "Business Roadmap -2020" in South Kazakhstan region?
- The "Business Roadmap - 2020" Program is a unique system of business support, including tools of financial and nonfinancial government support. Entrepreneur, who opens a new business or expands existing business in the priority sectors, can get subsidy of interest rate on the loan, a partial guarantee on the loan, to conduct engineering services, to learn for the program funds, and even go abroad for an internship for a similar venture.
Under the "BRM-2020" Program "Damu" Fund acts as financial agent under the first, second and third direction, whose functions include: transfer of funds to the Banks / Bank of Development / Leasing companies under interest rate subsidizing, loan guarantees under the Program, making recommendations based on debtors, submitted to the meetings of the Working Group, monitoring the implementation of the Program; and under the fourth direction acts as the Operator with the exception of training and retraining of staff to demanded in the labor market professions and the organizations of "Youth practice".
It should be noted that good results achieved in terms of implementation of the "Business Roadmap -2020" Program in the region. To date ( 10.12.2012 ) 169 projects were approved for a total amount - 51.43 billion tenge, of which: under the first direction 119 projects totaling 17.98 billion tenge, under the second - 14 projects amounting to 13.93 billion tenge, under the third direction - 36 projects totaling 19.52 billion tenge in South Kazakhstan region.
Among the projects that have been approved, there are large and well known companies as "Kentau Transformer Plant" JSC, "Shymkentmay" JSC, "Altyn Dan" Ltd., "Rauan" Ltd., "Ferum-vtor" Ltd. and others. There also small projects of small business were presented, such as: SP "Kuralbekov", SP "Kudaybergengov", "Al-Da-sat" Ltd. and others...
All approved projects have a great social importance for our region, because they involve the creation of additional jobs and increased tax revenue.
- As you know, under the "BRM -2020" Program a partial guarantee is provided. What is the mechanism of this support, and what projects have already received a partial guarantee in the region?
Guaranteeing - is one of the methods of state support of local businesses. Many companies do not have sufficient collateral to get a loan for the development of existing and especially on the opening of a new business. The government decided to issue a partial guarantee for new business loans to support them.
The guarantee can be received on new loans for investment projects implementation and projects aimed on modernization and expanding production. The loan amount, by which the guarantee implements, can’t exceed 4.5 billion tenge for one borrower.
Amount of the guarantee can not exceed 50% of the loan amount.
Since this year into the program has been included a new system of guaranteeing the loans. A concept of express warranty included. The period of consideration is not more than 5 working days.
In order to support beginning entrepreneurs’ size of guarantees for them will be up to 70% of the loan amount, with a maximum loan amount can not exceed 20 million tenge. That is a beginning entrepreneur to obtain a bank loan need to provide collateral in an amount not less than 30 percent, the remaining 70 percent of the bail amount will be guaranteed by the state. For existing entrepreneurs size of guarantees remains the same - to 50 percent.
It is also possible guaranteeing a loan of not more than 60 million tenge directed 100% for working capital financing (excluding of payroll, tax and other obligatory payments, payment of current servicing payments on loans, loan or lease agreements and other purposes not related to the applicant's principal activity ).
The entrepreneur must ensure the use its own funds in the implementation of the Project at the level of at least 10% of the total cost of the Project, or the use of its own movable / immovable property (including property of third parties, provided in support), with at least 20% of the total cost of the Project in the Project implementation.
The other day the first rapid warranty under the "Business Roadmap-2020" Program was signed in the region. Term of consideration of the project by the " Damu" Fund amounted to 5 working days.
The first sign was the company "Al -Da- Sat". It is engaged in the production, procurement, processing and export of fruits and vegetables - melons "torpedo" and " Gulyabi" sorts, packed in special trays and sold under the trademark "Dihan".
Regional Coordinating Council approved 12 projects of guaranteeing loans worth over 806.7 mln tg. In terms of industries companies operating in the fields of agriculture, health care, manufacturing, accommodation and food services, etc. received support.
- It would be interesting to learn about the results of the implementation of non-financial projects developed under the program and aimed at improving competence of entrepreneurs.
As you know, the "Business Roadmap 2020" Program is implemented in four directions. The last of them - is "Strengthening the entrepreneurial potential". Help to entrepreneurs expressed in:
1. Support for beginning entrepreneurs ( start - up projects), providing a standardized package of services ;
2. Service support in conducting existing businesses;
3. Training top managers of small and medium businesses;
4. Modernization and expansion of enterprises through the establishment of business relations with foreign partners ("Business communications" Project);
5. Personnel training and retraining for the demanded in the labor market specialties.
We would like to elaborate on the project "Business Advisor", which started on June 26 in the region. For today, 2532 beginning and existing entrepreneurs from all the cities and regions of South Kazakhstan region were trained. It is the highest rate in Kazakhstan. Moreover, 81% of the audience - were start-ups, 19% - were active entrepreneurs.
- How many entrepreneurs have been trained?
This year, under the "Education of top - management of small and medium enterprises" component implementation Regional Coordinating Council approved applications of 45 managers of small and medium-sized businesses operating in the priority sectors of economy for training at "Nazarbayev University" JSC. In total 48 applications was submitted to regional affiliate of "Damu" Fund.
153 applications of managers of small and medium-sized businesses, planning and carrying out their activities in the priority sectors of the economy, on training in the cities of Almaty and Astana were accepted Under the "Business Communications" direction by of South Kazakhstan region affiliate of "Damu" Fund.
Applications are filed mainly from enterprises engaged in agriculture (crops and livestock), education, involved in production of food, publishing. Sports organizations Represented less actively. There are heads of workshops for production of non-alcoholic beverages among those who have decided to use the tools of support.
If compared to the previous year ("Training of top management " and "Business Communications "), the number of applications increased by 10 %, which indicates that SME managers are interested in professional development and in learning new models of building a business. In addition, it is also an indication that the " Damu" Fund and its regional affiliate is doing a great outreach.
- Continuing the theme, please tell us about a pilot program of young entrepreneurs support, developed by the "Damu" Fund.
On September 17 of this year, the "School of young entrepreneur was launched, under the pilot program "Damu- Zhastar" in Shymkent. Its goal - is to stimulate activity in sphere of entrepreneurship and improvement of entrepreneurial literacy of youth and beginning young entrepreneurs.
It operates on the basis of South Kazakhstan State University named after M. Auezov and its main task - is the formation of professional and personal skills of listeners, sufficient to establish and grow their own business.
The School format - are short training seminars on improvement of professional and personal competences of 48 teaching hours with protection of the business plan and its presentation under the "Ideas fair".
Also, in the course of training it is planned to use a video-conferencing system "Skype" to conduct online trainings with international coaches ( International Training Center named after Golda. Meir, Israel, Institute of Business Development, Russian Federation).
For today over 270 students have been trained.
"Fair of Ideas" was organized Upon completion of training of at least 100 students. It gives young entrepreneurs the opportunity to meet with successful entrepreneurs to share ideas, establish cooperation, business expansion, search of potential investors, partners, prospective employees for companies, etc. In Total 4 " Fair Ideas" is planned to organize to the end of 2012.
- This year, the program "Business Roadmap 2020" has been replenished with a number of changes relating to, inter alia, subsidizing of leasing transactions of private entrepreneurs. Do you already have projects that have been approved by the RCC on leasing deals?
Since 2012 the program has been replenished with a number of changes that facilitate the procedure of registration and obtaining state support, and includes new support tools. Henceforth, entrepreneurs have the opportunity to receive government subsidies for financial leasing.
The first project on financial leasing is already approved in our region, considered by "Leasing Group" JSC. It is presented by " Asyl Tas Alliance" Ltd. and is aimed at the acquisition of equipment for the production of gypsum and dry mortar. The company launches plaster production line.
It should be noted that the interest rate on the lease for Ltd. is 8% per annum. 7% is compensated by the state, according to the terms of the program "Business Roadmap-2020". The rest - 1% will be paid by an entrepreneur.
Undoubtedly, the number of entrepreneurs that receive state support under the "Business Roadmap 2020" Program will increase each time in South-Kazakhstan region. Already, the number of projects submitted for subsidies for leasing increased noticeably. I think in the near future they will be submitted for consideration by RCC.
- The second Business Service Centre in the country opened in Shymkent. What it will give to our businessmen?
In accordance with program developed by "Damu" Fund for the development of competencies of entrepreneurs in South Kazakhstan region support for small and medium-sized businesses is implemented at three levels : in the regional center - BSC, monotown Kentau - Business Support Center, and in 13 districts of the region - Mobile Business Support Center.
Business Service Center began to operate and provide advisory services for SMEs from October 8, 2012. It was officially opened on October 17. It works on the principle of public service centers that have already proven themselves to advantage. In the Center representatives of small and medium-sized businesses get advice on opening and maintaining a business and its financial support.
The main task of BSC - is to create favorable conditions for effective development and increasing competitiveness of Kazakhstan's business by providing integrated support.
In our BSC according to schedule and operation mode the following organizations are located: Financial institutions ( "EDF "Damu" South Kazakhstan region affiliate, BSC in South Kazakhstan region affiliate of "Damu" Fund, "KazAgroFinance" JSC, " Agricultural Credit Corporation" JSC, "Fund for Financial support of Agriculture" JSC, 15 second tier banks ("Nurbank" JSC, " Temirbank" JSC, "Kassa Nova" JSC, "BankCenterCredit" JSC, " Sberbank" JSC, "Bank VTB" JSC, "Kazkommertsbank" JSC, "Fortebank" JSC, "Tsesnabank" JSC, "Halyk Bank of Kazakhstan" JSC, "ATF Bank" JSC, "Bank RBK" JSC, "Eurasian Bank" JSC, "BTA Bank" JSC, "Alliance Bank" JSC) Service companies: "SMK Consulting" Ltd.; "S - media" Ltd., "Legal consulting company" Ltd.
Business Support Center In monotown Kentau started functioning from November 16, and in the period from 20 November to 12 December, all areas of the region were visited by mobile business support center. The main purpose of mobile and stationary BSC - is expansion of markets of consulting services for SME in communities with low levels of coverage for creating an enabling environment for business development accelerated.
Overall, for today more than 673 existing and beginning entrepreneurs appealed to BSC for consultations on various aspects of entrepreneurship.
In Kentau BSC more than 50 beginning and existing entrepreneurs received support, and mobile business support centers provided 211 consultations in regions and towns.
Thanks for the interview !