INFLUENCE OF POPULATION INCOME ON THE DEVELOPMENT OF SMALL AND MEDIUM BUSINESS IN THE KYRGYZ REPUBLIC

This study investigates the impact of population income on SME growth in the Kyrgyz Republic by analyzing wage, employment, and SME data from to 2017-2022. PEST analysis was used to examine the factors influencing entrepreneurship. Key challenges include insufficient financing, high taxes, loan interest rates, administrative barriers, and corruption. Increases in SME numbers and sector employment were noted. The proposed state support measures include financial aid, tax incentives, anticorruption efforts, and infrastructure development. Recommendations advocate adopting practices from developed nations and implementing innovative mechanisms to enhance competitiveness. Emphasis is placed on improving state support, especially in regional areas, to create a favorable environment for entrepreneurship.