Problems and ways of business climate improving in the regions

Abstract

The presence of the specific conditions and development factors of small and medium-sized enterprises (SMEs) in the regions of the country supposes the differentiated state policy in order to maintain a favorable business climate in the eld. The article presents the results of the research whose purpose was to determine the main issues and directions of the improvement of the business climate in the region, allowing to intensify the activities of local authorities in support of SMEs and considering the peculiarities of the territories development. The subject matter of this research is conditions and factors generating the business climate of the region. As a hypothesis, a direct connection between the prevailing regional business climate and the development of the quantitative indicators of active SMEs in the eld was assumed. The study used the method of comparative analysis, sociological methods of focus groups, survey research, and statistical methods of ranking and grouping. The article theoretically substantiates the correctness of the usage of the «business climate» category as an object of study in the framework of such project as «Implementation of «Business Climate» as an Independent Rating», which makes possible the argumentation of the used methodology and concretization of the factors affecting the functioning of small and medium-sized businesses in the regions. This research confirmed a direct correlation between the established business climate in regions and quantitative indicators of the development of active small and medium-sized enterprises in the eld. Such factors as “ financial resources” and “government support” limited the development of business increasingly. In conclusion, a set of measures is provided to improve the business climate in the region both at national and regional levels of government. In addition, it was concluded that to generate a favorable business environment in the regions of Kazakhstan, it is necessary to make a smooth transition from a policy of “identification and punishment of conscientious entrepreneurs” to a policy of “prevention of violations and promotion of good business.” The results of the research can be used in the work of the local executive authorities in order to improve business climate in the regions of country.