The Impact of Small and Medium-Sized Enterprises on Employment in Kazakhstan

Abstract This study examines the impact of small and medium-sized enterprises (SMEs) on employment in Kazakhstan, focusing on their contribution to job creation, employment growth, and economic development. It also explores the challenges that limit the ability of SMEs to expand their workforce and create sustainable employment opportunities. The research employs a mixed-methods approach, combining an analysis of official statistical data and academic sources with a survey of more than 100 respondents and three interviews with representatives of the SME sector. This approach provides both quantitative and qualitative perspectives on the relationship between SME development and employment. The findings indicate that SMEs play a significant role in Kazakhstan's labor market, accounting for approximately 46.6% of the economically active population's employment. The research also identifies a positive trend in SME-related employment growth. However, several barriers continue to affect business development and job creation, including limited access to financing and credit, tax burdens, shortages of qualified workers, administrative procedures, and insufficient awareness of government support programs. Notably, 28.7% of survey respondents were unaware of available support programs, while two out of three interviewed entrepreneurs reported not using them. The study concludes that the development of SMEs contributes positively to employment in Kazakhstan, although this relationship is not automatic. The ability of small and medium-sized businesses to generate sustainable jobs depends on financial accessibility, effective government support, workforce development, and a favorable business environment. Note: The original research was written in Kazakh and subsequently translated into English for publication. The survey evidence and supporting materials are presented in their original Kazakh language. Keywords: Small and Medium-Sized Enterprises (SMEs); Employment; Kazakhstan; Job Creation; Labor Market; Entrepreneurship; Economic Development; Government Support.