Paper Title
Concentration of enterprises and economic growth in the region: interrelations and peculiarities in Kazakhstan
Abstract
Our research takes a unique approach by delving into the role of enterprise size and concentration in
a specific region, particularly Central Asian countries, offering a fresh perspective. Despite its potential, this
area has been largely unexplored in the existing body of scientific literature, making our findings all the more
intriguing.
The analysis is based on a robust methodology involving the calculation of the index of SME concentration in
the regions of Kazakhstan and assessing the impact of its degree on economic development. The calculation of
the index is firmly grounded in foreign practice, ensuring the reliability of our approach. The authors test the
hypothesis of different degrees of SME influence on GRP depending on the company's size. The analysis is
based on comprehensive panel data on the regions of Kazakhstan for the period from 2008 to 2022, further
bolstering the validity of our findings.
The study's authors found that the degree of concentration of small businesses and individual entrepreneurs in
megacities is significantly higher than in other regions of the country, and medium-sized enterprises are mainly
concentrated in the extractive areas of Kazakhstan. The authors found stable dynamics of regional concentration
indices for all forms of SMEs in the country and noticed that they do not differ significantly between regions for
2008-2022.
Our findings hold significant implications for local authorities. We conclude that, all other factors being equal,
the degree of concentration of different types of SMEs does not notably impact the economic development of
the region. This insight can guide local authorities in allocating resources more effectively, particularly in SME
support and development programs. Our research underscores the importance of supporting small businesses
and individual entrepreneurs, whose contributions are on par with medium-sized enterprises.
Keywords - Small and Medium Business, Kazakhstan, Regions of The Country, Economic Growth, The Index
of Concentration of Enterprises, The Degree of Business Concentration.