The analysis of state and efficiency of entrepreneurial activity's development of the Pavlodar region

In the article, on the materials of the Pavlodar region, the state of the sphere of small and medium-sized entrepreneurship (SME) is analyzed in the context of the main socially significant indicators of its development. The analysis' materials show a number of stable patterns of SME development in the region, both positive and negative. Among them, the reduction in the number of registered, operating and active SME subjects is observed in the article, which is reflected in the dynamics of the population engaged in this sphere, the volume of production and the contribution of this sector of the economy to the gross regional product. Identification of the reasons of the formation of the negative trend of reduction of the number of active SME subjects in the article is carried out in the context of the structural components of the subjects of this sphere. The analysis testifies to the existence of a number of disproportions in the development of SME in the region: structural ones in the combination of SME subjects there is dominated the category of «small entrepreneurship», which is represented maximally by individual entrepreneurs in the context of the organizational and legal forms of SME in the region, and in the context of economy branches - by trade; territorial: the maximum number of SME subjects in the region is concentrated in urban settlements and, first of all, in the regional center, Pavlodar c. Despite the measures taken by the state, including support for the cooperative movement, among the main problems of the entrepreneurs of the region are infrastructural, financial and tax problems. Considering the fact that the tendencies and problems of SME development in the region are illogical to the situation in the whole in the republic, their solution, first of all, requires macroeconomic regulation and balanced situational approach to their solution in the region.

Small and medium-sized entrepreneurship as an important component of modern production mainly contributes to maintaining a competitive tone in the economy, creates a natural social support for a social organization, organized on the principles of the market, and also forms a new social stratum of entrepreneurs.

The development of small and medium-sized businesses in the Pavlodar region over the past decade has generally been characterized by growth tendencies in output (work and services), the number of employed in this sector and the number of operating small and medium-sized entrepreneurship (Table 1). However, the dynamics of socially significant indicators of the development of small and medium-sized entrepreneurship in the Pavlodar region over the past 5 years has a mixed tendency. The analysis shows that starting from 2014, there is a steady tendency in the region to reduce the number of registered, operating and active SME subjects. At January 1, 2017, the number of registered, operating and active SME subjects compared to 2014 decreased by 4,9, 4,6 and 5,9 %, respectively. At the beginning of 2018, the number of operating SME subjects in the region amounted to 41311 units, which is 5,8 % lower than the same indicator in 2017.

Table 1 Socially significant indicators of development of small and medium-sized entrepreneurship in the Pavlodar region (at 1.01)

Indicators

2013

2014

2015

2016

2017

Number of registered SME subjects, thous. units

51,54

53,68

54,53

52,36

51,88

Number of operating SME subjects, thous. units

45,88

46,09

44,26

44,34

43,87

Number of active SME subjects, thous. units

33,78

35,3

33,85

33,48

32,22

Note. The table is compiled by sources [1, 3].

Reduction of the number of active SME subjects should be viewed as a negative factor, which supposes the analysis of the reasons behind this tendency. For this purpose, we consider the dynamics of the number of SME subjects in terms of its structural components (Table 2).

In the structure of SME subjects, the number of active legal entities of small entrepreneurship from 2015 to 2017 has a growth tendency of 22,6 %. The growth trend for years is stable. The legal entities of medium-sized entrepreneurship in the structure of SME in the region have an average weight of 0,2 % and there is no dominant influence on the dynamics of the decline in the number of SME. During the period from 2015 to 2017 the number of peasant household (farms) in the region decreased by 15 units or 0,4 % and individual entrepreneurs by 10,0 % (3647 units). Taking into account the fact that in the structure of active entities, the share of farming enterprises (F) is on average 7,6 %, and the share of individual entrepreneurs is 7880 %, it becomes obvious that the downward tendency in the number of active subjects in the region is due to a categorization of SME subjects as individual entrepreneurs, in structure of which on average up to 60 % of the subjects there are in the sphere of trade. This phenomenon is given several explanations.

Table 2 Dynamics of the number of subjects in the context of the structural components of SME (at 1.01 in the analyzed year)

SME subjects

Year

Number of registered SME subjects, units

Number of operating

SME subjects, units

Number of active SME subjects, units

Total

2015

54526

44264

33853

2016

52368

44343

33479

2017

51888

43872

33218

2018

52132

41311

*

Legal entities of small entrepreneurship

2015

9049

5994

3398

2016

9863

6743

3733

2017

10729

7566

4166

2018

11783

8480

*

Legal entities of medium-sized entrepreneurship

2015

94

92

86

2016

102

102

96

2017

94

94

93

2018

103

103

*

Individual entrepreneurs

2015

41481

36503

27204

2016

38770

34137

26607

2017

37377

32856

25889

2018

36856

29517

*

Peasant household or farms

2015

3802

3371

3165

2016

3361

3361

3043

2017

3688

3356

3070

2018

3390

3211

*

Note. The table is compiled by sources [1, 3]; * information is absent.

Objectively, the process of reducing the number of individual entrepreneurs is associated with the problems of inaccessibility of credit resources, rising prices, falling solvent demand and a number of other reasons. As one of the main reasons is the process of «the formation of a civilized person in the sphere of individual entrepreneurship», for example, the concentration of individual entrepreneurship subjects within the framework of large trade structures (trading centers, trading houses, etc.). The associated with this process «input» system, steadily growing rent, additional financial burden in the form of reimbursement of the expenses for maintaining these structures, etc., often leads to suspension of activity and closure of business.

In the structure of active subjects in the Pavlodar region, a very low share of legal entities of mediumsized entrepreneurship — only 0,3 % of the total number of SME subjects in the region. А similar tendency is typical for the republic as a whole. This circumstance can be mainly a reflection of the situation that exists when small business consciously reduces turnover in order not to become a medium-sized business, which in turn is due to the existing stereotype that a small business has more benefits and advantages than average business. Moreover, entrepreneurs have more information about supporting small, rather than medium-sized business. This is confirmed by the established structure of legal entities — small and medium-sized entrepreneurship.

The data of Table 2 show that small enterprises account for 98,898,9 % of the total number of legal entities of small and medium-sized businesses in the region. The same tendency is typical for all the territories of the region.

One of the important indicators of the SME sphere is the production of goods and services. It should be noted that for the period from 2013 to 2015 the volumes of output in the sphere of SME increased by 28,9 % with the growth of the number by 13,8 %. In 2016, the volumes of output in the sphere of SME is reduced by 15,7 %, while a reduction of 0,7 % in active subjects and of 1,1 % in the number of employed in the sphere of SME. Despite the reduction in the number of people employed in the sphere of small and medium-sized entrepreneurship, it is noted in the region the increase in the share of employed in this sector in the total population of the Pavlodar region and in the economically active population of the region (Table 3), which is a positive tendency indicating an increase in the role of small and medium-sized business in providing employment for the population of the region. However, this indicator lags far behind the indicator in developed countries (the employment level in SME there is 5070 % of the economically active population).

Table 3 Dynamics of the number of employed in the sphere of SME in Pavlodar region

Note. The table is compiled by sources [3, 4]; * information for January-September of 2017.

Indicators

2013

2014

2015

2016

2017

The population of the region, thousands of people

749,2

752,9

755,8

758,6

757,1

The number of economically active population, thousands of people

440,0

441,3

426,2

421,4

418,5

Number of employees in small and medium-sized businesses, thousands

116,1

123,5

130,1

129,2

128,4

Share in total population, %

15,5

16,4

17,2

17,0

16,9

Share in the number of economically active population, %

26,4

28,0

31,0

30,7

30,6

Volume of output of goods, works and services in the sphere of SME, billion tenge

360,6

538,0

589,79

497,25

474,7*

In the volume of output of goods, works and services in the sphere of SME, the contribution of different categories of subjects has its own specifics (see Fig.).

In the structure of subjects of SME sphere of the region, legal entities of small and medium entrepreneurship are the most efficient. Their share is 60,9 % and 18,8 % of the total volume of goods and services produced by the subjects of this sphere, respectively, while the share of legal entities of small entrepreneurship in the structure of operating SME subjects is 20,5 %, and medium entrepreneurship is 0,2 %. The most

numerous category of operating SME subjects are individual entrepreneurs (71,5 %), whose share in the total output of the SME sphere is 12,2 %.

In general, summarizing the mentioned above, it should be noted that despite the tendency of forming of a certain category of active SME subjects in the region, whose share in the total number of SME is on average 75 %, the SME sector in Pavlodar region is not developed enough, while remaining poorly diversified. Reducing the number of small and medium-sized businesses is accompanied by a reduction in the contribution of this sector to the GRP of the region, which in 2017 doesn't exceed the same indicator in 2014 (Table 4). For comparison, in developed countries, the contribution of small businesses to GDP is from 43 % (Canada) to 57 % (Germany).

Table 4 Contribution of the SME sector to the GRP of the Pavlodar region

Indicators

2013

2014

2015

2016

2017

GRP of the region, billion tenge

1528,4

1766,0

1751,9

1975,5

2243,1

The volume of output of goods, works and services, billion tenge

360,6

538,0

589,79

497,25

474,7

Share of output of SME in GRP, %

23,6

30,5

33.7

25,2

29,8

Note. The table is compiled by sources [5, 2, 4].

Statistics show that relatively stable categories of entrepreneurial activity in the region are legal entities of small entrepreneurship. At 01.01.2017, the number of registered, operating and active small entrepreneurship subjects in the region increased by 18,6, 26,2 and 22,6 %, respectively, compared to the same period of 2015.

On the background of the reduction in the number of active peasant household (farms) by 15 units (0,99 %) in the region over the past 2 years, the number of active subjects in this category has increased by 27 units (0,9 %) as compared to 2014.

The «vitality» of farming is largely explained by the existing tendency in the development of complex, diversified structure of the agrarian business in accordance with the scheme: production — processing — sale. The presence of wheat processing mills, meat processing workshops, the production of pasta, etc., in farms. allows to produce finished products from agricultural raw materials, and not to hand it over to intermediaries at low purchase prices. On the other hand, the availability of retail outlets in farms (in a village, a district center and a city) makes it possible to sell finished products in a price range attractive for both farmers and consumers of its products.

A significant role in supporting farms is played by measures organized by local authorities: organized trade (fairs) for farms on weekends, etc.

According to the analysis, the share of individual entrepreneurs is predominant in the total number of small entrepreneurship subjects in the region,. This fact can be explained by the advantages of doing business in the form of individual entrepreneurship (firstly - simplified taxation). The share of individual entrepreneurs from the total number of SME subjects at 01.01.2017 was 79,9 %.

In the structure of operating SME subjects, 81,6 % of their number (35792 units) are concentrated in Pavlodar, Aksu and Ekibastuz cities. The largest share of SME is in Pavlodar 51,1 % (Table 5). Among the districts, the leaders in terms of the number of SME are Pavlodar district (2,6 %), Bayanaul (2,8 %) and Kachiry (2,6 %) districts. The analogous situation is typical for the districts both for legal entities of small entrepreneurship and for peasant farms.

Individual entrepreneurship was largely developed in Kachiry (2,3 %), Bayanaul (2,17 %) and Irtysh (1,97 %) districts.

Outsiders in the regional rating of SME development are May (1,0 %), Lebyazhinsk (1,2 %) and Aktogay (1,23 %) districts.

The analysis of the state and efficiency of development of entrepreneurial activity in the Pavlodar region allows us to identify the following regularities of SME development in the region.

In the territorial context «city/village» the largest share of business subjects in the structure of SME in Pavlodar region is in Pavlodar, Aksu and Ekibastuz cities: 81,6 % of operating enterprises. The maximum number of business entities in the city is concentrated in Pavlodar c. 51,1 %. Objectively, this is explainedby the maximum concentration of solvent demand in the cities of the region and the regional center, first of all.

In the structure of SME subjects in Pavlodar region at 01.01.2018, the dominant part are subjects of small entrepreneurship (individual entrepreneurship and legal entities) 92,1 %. The share of legal entities in the sphere of medium business is 0,2 %. The low dynamics of the transition of small business to mediumsized businesses has no reasoned justification. According to entrepreneurs, work in the small business sphere is less connected with various risks, including financial ones, and the conditions of its functioning are more «loyal and sparing» than for medium-sized businesses (Table 5).

Table 5 Number of SME operating subjects at 1 January 2017

 

Total, units

Including

legal entities of small entrepre-neurship

legal entities of mediumsized entrepreneurship

individual entrepreneurs

peasant household (farms)

Pavlodar

region

43872

7566

94

32856

3356

Pavlodar c.

24423

5549

59

18682

133

Aksu c.

2889

190

4

2479

216

Ekibastuz c.

8480

1430

23

6790

237

districts:

         

Aktogay

541

24

1

332 ¯

184

Bayanaul

1227

50

1

716

460

Zhelesinka

744

51

1

490

202

Irtysh

961

43

2

648

268

Kachiry

1151

45

1

760

345

Lebyazhinsk

508

17

-

317

174

May

441

20

-

269

152

Pavlodar

1127

75

-

471

581

Uspensk

605

22

-

382

201

Shcherbakty

775

50

2

520

203

Note. The source of information [6].

In the structure of organizational and legal forms of entrepreneurship in the Pavlodar region, individual entrepreneurship has the largest share 70,7 %. The share of legal entities of small and medium business is 22,6 %.

In the structure of SME, the share of peasant household (farms) is 6,5 %. One of the regularities of the development of peasant farms is the diversification of their activity. The structure of farms, more and more often, has a complex character according to the scheme: production-processing-sale. This situation is explained by a number of objective factors, including: low purchase prices, limited capacities of large processing facility, which usually work with large suppliers (as a result, small entrepreneurs cannot hand over their products for processing), etc.

Among the problems of small and medium-sized entrepreneurship development, despite the existing measures to support the development of SME, the most actual problem is still the lack of financial resources, difficulties in obtaining credit and problems with attracting investments, lack of specialized knowledge and management skills, high rents, high level of taxation and a number of others. From this it follows that the improvement of measures to support and develop small and medium-sized entrepreneurship of the Republic of Kazakhstan, in general, and the Pavlodar region, in particular, supposes macroeconomic regulation of the situation, on the one hand, and the decision of narrowly specific problems of entrepreneurial activity, on the other.

State programs and a set of measures for the development of entrepreneurship should include measures to improve the mechanisms of monetary, tax, budgetary and price policy, material and technical provision, the system of official guarantees that would ensure the creation of equal starting conditions in the development of entrepreneurial activity and ensure decision of existing problems in this sphere.

 

References

  1. Departament statistiki Pavlodarskoi oblasti. Sotsialno-ekonomicheskoe razvitie Pavlodarskoi oblasti (yanvar-dekabr) (2012, 2013, 2014, 2015, 2016) [Department of Statistics of Pavlodar region. Socio-economic development of Pavlodar region (January- December)]. Pavlodar. pavlodar.gov.kz. Retrieved from http://www.pavlodar.gov.kz [in Russian].
  2. Sotsialno-ekonomicheskoe razvitie Pavlodarskoi oblasti. Kratkii statisticheskii biulleten Yanvar 2018 hoda (2018) [Socioeconomic development of Pavlodar region. Short statistical messenger. January of 2018]. Pavlodar [in Russian].
  3. Osnovnye indikatory rynka truda po raionam Pavlodarskoi oblasti [The main indicators of the labor market in the districts of Pavlodar region]. stat.gov.kz. Retrieved from http://stat.gov.kz/faces/pavlodar/reg_main/regDinamo?_afrLoop=6396148 257069585#% 40%3F_afrLoop%3D6396148257069585% 26_adf.ctrl-state%3Dzzs4qw0ud _52 [in Russian].
  4. Departament statistiki Pavlodarskoi oblasti. Sotsialno-ekonomicheskoe razvitie Pavlodarskoi oblasti. Ezhemesiachnyi informatsionno-analiticheskii zhurnal (2017) [Department of Statistics of Pavlodar region. Socio-economic development of Pavlodar region. Monthly information analytical journal]. Pavlodar [in Russian].
  5. Prohramma razvitiia territorii Pavlodarskoi oblasti na 2016-2020 hody. [Program of development of the territory of Pavlodar region for 2016-2020]. gigabaza.ru. Retrieved from https://gigabaza.ru/doc/178790.html [in Russian].
  6. Monitorinh kolichestva deistvuiushchikh subektov maloho i sredneho predprinimatelstva v Pavlodarskoi oblasti. Departament statistiki Pavlodarskoi oblasti. Ekspress-informatsiia (No. 17-38/19 ot 18 yanvaria 2018 h.) [Monitoring of the number of operating small and medium-sized entrepreneurship in the Pavlodar region. Department of Statistics of Pavlodar region. Express information. (No. 17-38/19 of January 18, 2018)]. stat.gov.kz. Retrieved from http://stat.gov.kz/faces/ pavlodar/reg_main?_afrLoop=6192401043923603#%40%3F_ afrLoop% 3D 6192401043923603%26_adf.ctrl-state%3Dcshhns1hz_63 [in Russian].
Year: 2018
City: Karaganda
Category: Economy