Relevance of research is defined by that business being the engine of national economy it is necessary to support always small and medium business as it leads to capital inflow, unemployment rate drop, reduction of inflation and development economy as a whole.
Business – as the engine of economy in Kazakhstan Republic
Strategic problems of economy in Kazakhstan are development of a domestic production, carrying out innovative information technologies directed on receiving competitive production and ensuring interests of national economic security at the expense of preservation and development of industrial and scientific and technical capacity of the republic.
The introduction problem on the market of small enterprises in the light of the last changes in economy of our country is especially urgent. In the conditions of a difficult economic crisis which resulted in bankruptcy of a large number of huge oligopoly, it is necessary to remember support of small business. The collapse led to that the large companies lost the positions on a commodity market and services, and the majority of the medium-sized and small enterprises which “stayed afloat” till September 1998, in general ceased to exist. Who now can support the Kazakhstan economy? This business also needs to be given in a charge of small and medium business. Economically it is favorable because emergence of a large number of firms will lead to emergence of new workplaces, it is easier to manage small enterprise in the conditions of an unstable rate of national currency and it will bring real money in the budget not only the center, but also regions that is especially important, considering huge decline of subjects of RK. And one of the most important advantages is that emergence of small and medium business inevitably conducts to emergence of the competition in the domestic market that so didn’t suffice to economy of Kazakhstan at the last stages of development that brought to creation of monopolies and to power concentration, both political, and economic, in hands of small group of people which possessed the huge capitals. But to avoid it is as much as possible mistakes which are inevitable at forming a new current in economy of Kazakhstan, at first it is necessary to learn on take-off and falling of other countries in this area and to understand, what conditions are necessary for development of small business in our country.
Business is the risky business which is carried out voluntary by citizens (their associations) on the risk and under the responsibility. Business associates with concepts to make something new or to improve the already existing. It is connected with the concepts “dynamism”, “initiative”, “courage” and releases in society that potential which turns many interesting ideas into reality. Since then its priority development is an integral part of a state policy and the majority of cardinal changes in society is connected with it.
According to President N.A.Nazarbayevd: “Small business is life or death of the state”. On experience of foreign countries it is visible that small and medium business is a basis of economic development of the country and makes the main part in GDP.
Business is a driving force of the countries with civilized market economy. In the developed countries small business took for a long time the place in economy and its role determined by its functions and a real contribution in public progress, constantly increases. Today in Kazakhstan there are three main versions of business: financial, production and commercial.
Financial business activity is directly connected with object of trade, in this case – money, currency, securities. This activity is carried out, directly, by the share and currency exchanges, investment banks.
Financial business exists in two forms:
• Release in the circulation of securities (emission);
• Acquisition of actions, etc. securities.
According to the Law of Kazakhstan Republic of July 4, 2003 No. 474 “About state regulation, control and supervision of the financial market and the financial organizations” the financial market is a set of interactions connected with rendering and consumption of financial services, and also emission and the address of financial instruments. Financial services are an activity of participants of the insurance market, securities market, accumulative pension funds, bank activity, activities of the organizations for carrying out separate types of the bank operations, carried out on the basis of the licenses issued according to the legislation of Kazakhstan Republic, and also activity of the central depositary, the uniform registrar and societies of the mutual insurance, not subject to licensing.