FOREIGN EXPERIENCE OF SUPPORTING SMALL AND MEDIUM BUSINESSES

Abstract

It is widely accepted in both developed and developing countries that small and medium-sized enterprises (SMEs) are the source of dynamism, innovation and flexibility in the economy. SMEs tend to take risks in their economic activities, generally based on innovation and volunteerism. With this feature, SMEs contribute to increasing competition and creating a wider choice environment for consumers by expanding the supply of goods and services. However, compared to large companies, they do not have the opportunity to generate sufficient profits in a short time in return for the investments made and the risks undertaken. In this case, SMEs are given privileged support over other businesses and therefore, special policies are developed and implemented for these businesses. The development of small and medium-sized businesses is very relevant for the modernization of the economy of Kazakhstan. But today, the level of development of small and medium-sized businesses in Kazakhstan lags behind other, economically developed and some developing countries of the world. There are shortcomings in the provision of financial support to small and medium-sized businesses by the state. Considering these factors, the purpose of this article is to examine and analyze the experience of small and medium-sized businesses in foreign countries. During the research, generalization, analysis and synthesis, comparison and graphic representation methods were used. Analysis and research of foreign experience allows the state bodies of Kazakhstan to create various programs to support entrepreneurship. In developed and some developing countries, the development of small and medium business is faster and more active than in Kazakhstan. First of all, this is due to the enormous support of the authorities of the countries for entrepreneurship: they develop regulations and programs, give discounts and loans, attach great importance and attention to this area of the economy.