1. Development strategy of “damu entrepreneurship development fund” JSC for 2014-2023 years

2. Environmental analysis
Анализ внешней среды
Environmental analysis
Performance indexes of SME entities of Kazakhstan for years.
Since 2005 through 2013 the number of registered SMB entities increased twice and made up to more than 1,5 million entities
Number of population occupied in SMB sector increased by 1,4 times and made to more than 2,6 million people in 2013.
SMB product output increased by 5,8 times for the period under consideration and made milliard tenge per annum
Source: Statistics Agency of RK (
Lending dynamics of economy and small businesses by banks
Restoration of growth of loans granted to SMB during 2011 – 2012 years is monitored.
Share of loans granted to SMB in second tier bank portfolio is decreasing annually
SMB sector in most extent is financed from own funds of entrepreneurs and only for a quarter through bank lending
Insufficient meeting of the entrepreneurs’ demand for financial resources
Source: National Bank of RK (

3. P –political legal factors Т -Technological and technical factors
PEST-анализ
PEST analysis
PEST factors
Open opportunities
Pose threat
P –political legal factors
Purposeful strategy of the Government for developing private entrepreneurship and increasing its role in the economy.
Working in National Management Holding “Baiterek” JSC.
Interaction with the Holding development institutes.
Interaction with Entrepreneurial Development Committee under Regional Development Ministry of RK
Changing legislation in the entrepreneurship support area.
Tightening the banking legislation.
Economical factors
E –
Continuation of economic growth and country economy diversification.
New instruments for SMB support become available.
Restoring “long” liquidity of second tier banks and their capability of crediting private entrepreneurship entities out of own resources.
Opportunities of Kazakhstan to attract funding from international institutes for development (ABR, EBRR and so on).
Functioning of Customs Union and Common Economic Space with RF and RB.
Decreasing credit ratings of second tier bank - partners.
Low developing rates of SME in industrial sector and innovation area.
No mechanisms, conditions and motivation for transforming small enterprises to medium size enterprises.
Reduction of home demand for domestic goods.
Limitedness of domestic market and remoteness from international sales markets.
Probability of recurring global economic crisis.
Social factors
S –
Involving wide layers of population in entrepreneurial activity.
Growth of incomes of people occupied in private entrepreneurship.
Resolving problems of employment among people.  
Low level of incomes and business solvency of entrepreneurs at the regional level.
Low level of qualification of entrepreneurs.
Youth shows low interest in holding entrepreneurial activity.
Т -Technological and technical factors
Introducing entrepreneurship informational support and development programs based on modern IT, electronic commerce systems.
Availability of modern production technologies an highly effective equipment for entrepreneurs.
No demand for modern information technologies among targeted audience.

4. Анализ внутренней среды Internal environment analysis
Results by major activity areas
As of
Performance of programs for specified investment of funds in second tier banks and lease financing
Number of borrowers, units.
Financing amount, million tenge
Number of created jobs
Credit provision through second tier banks (STB)
12 218
29 190
Lease financing
223
6 417
2 237
Microbanking
2 638
72 551
445
In total
15 079
31 872
Performance of “Business Road Map (BRM) 2020”: 1-3 areas
Number of agreements, units
Amount of credits, milliard tenge
Amount of subsidies / securities, milliard tenge
Subsidization of fee rate
3 628
883,2
63,9
Credit guaranteeing
311
24,1
10,1
Performance of “BRM 2020” program: 4th area
Project “Business - Advisor”
54 063
Project “Training top management of SMB”
840
Project “Business relationships”
1 667
Project “Service support for business”
32 402
Performance of entrepreneurial competence centers
Number of clients
Number of consultations
Entrepreneur service centers
24 276
46 734
Entrepreneurship support centers in mono towns
17 218
27 514
Mobile entrepreneurship support centers
7 765
10 510

5. Profitability performance profile
Анализ внутренней среды
Internal environment analysis
Fund financial state
Profitability performance profile
Balance sheet figures
Description
2011
2012
2013
ROA, return on assets
1,8%
1,9%
2,1%
ROE, return on equity
7,5%
4,5%
4,4%
Operating profitability
29,9%
35,5%
39,3%
Net profit, thousand tenge
NI margin
24,6%
27,8%
30,0%
assets
Liabilities
Own capital
In years stable net profit at the rate of 3,4 milliard tenge is ensured
Positive return on assets and equity capital
Equity capital has increased twice for the recent three years
On the whole the Fund has a high level of capital and this will enable to attract more debt finance instruments (borrows from the budget, international financial institutes, loans raised upon bonds) and based on this the Fund is capable of increasing size of assets

6. Benchmarking
Correlation of credit volumes granted to SMB by programs of institutes for development as to Gross Domestic Product (GDP) of the country
Correlation of credit volumes granted to SMB by programs of institutes for development as to the country SMB production output
Share of covering SMB entities by support programs of institutes for development
Volumes of SMB credits granted to clients of the Fund in the ratio with GDP of the country are higher than in the countries - benchmarks
Volumes of SMB credits granted to clients of the Fund in the ratio with SMB production output are higher than in the countries - benchmarks
Share of covering SMB entities by programs of the Fund is assessed to be at the level of 7% of the total number of SMB entities in the country
Fund looks sufficiently competitive on the background of analogical organizations occupied in supporting SMB
Source: World Bank, analytical magazine section The Economist, work group review

7. SWOT-analysis S – Strong points W – Weak points
Long time experience in supporting SMB and microcredit organizations.
Wide range of SMB support measures.
Well developed regional network of branches and entrepreneurial competence centers.
Presence of a strong shareholder - National Management Holding “Baiterek” JSC.
Fund – an operator of Stabilizing program and “BRM 2020” program.
Well adjusted and effective support mechanisms, transparency in their implementation.
Focus on corporate social responsibility.
Team of professionals with experience of working in financial institutes.
Long time partnership with analogical foreign organizations.
Availability of credit rating.
Low accessibility of the Fund services for entrepreneurs of regions and remote administrative-territorial units.
The need for combining tasks to ensure profitability of operational activity with realization of social orientated noncommercial programs.
O – Opportunities
Т – Threats
Increased attention to issues of developing private entrepreneurship within the framework of state economic policy.
The need for realizing educational projects for entrepreneurs.
Demand for new effective SMB supporting instruments.
Expanding partnership relations with analogical organizations worldwide.
Acquiring synergy from working with instituted for development of National Management Holding “Baiterek” JSC through using complex package of support instruments.
Lack of trust in companies with public ownership providing support for entrepreneurship on the part of private entrepreneurship entities.
Low qualification level of entrepreneurs in business holding area.
High competiveness level among foreign and domestic companies against background of integration of Kazakhstan to international community.

8. Provide adequate financing volumes for SMB on affordable conditions
Mission, vision
Challenges for the Fund
Provide adequate financing volumes for SMB on affordable conditions
Encourage financial institutes to finance SMB sector in sufficient volumes
Assist reduction of interest rates
Assist SMB in accordance with requirements for collaterals
Reduce deficit for highly qualified personnel with entrepreneurial and business experience
Increase financial literacy
Develop managerial and entrepreneurial skills
Принципы финансирования и инвестиционной политики
Отраслевая ориентация
MISSION:
VISION:
Mission of the Fund is to assist qualitative development of SMB in Kazakhstan through providing comprehensive support including wide range of financial instruments and programs for developing competencies
Vision of the Fund by – highly effective national institute realizing state policy for supporting and developing SMB
Create effective institute for development integrated in National Management Holding “Baiterek” JSC
Ensure breakeven level of operating and financial activity results
Increase effectiveness of managing financial resources
Increase transparency of operation and level of trust of people
Strategic areas of development
Ensure financial support for SMB entities
Develop competencies of SMB entities

9. PERFORMANCE COEFFICIENT
Creating effective institute for development integrated to National Management Holding “Baiterek” JSC
Tasks
PERFORMANCE COEFFICIENT
Maintain Return On Assets (ROA) at break even level 1,09% in 2014, 1,2% in 2023.
Maintain Return On Equity (ROE) at break even level 2,07% in 2014, 2,5% in 2023.
Maintain cost-effectiveness at break even level 19,5% in 2014, 20,5% in 2023.
Maintain weighted average return - internal rate of return at a level not lower than 6,0% till 2023.
Increase operating productivity from thousand tenge in 2014 to thousand tenge in 2023.
Maintain index NI margin at break even level 17,3% in 2014, 18,5% in 2023.
Maintain loan portfolio quality at the level 5,2% till 2023.
Increase local content share in procurements of the Fund including by goods from 60% in 2014 to 70% in 2023, works and services from 90% in 2014 to 96% in 2023. 1
Ensure break even level of operational and financial performance results 2
Increase effectiveness of managing financial resources
Maintain Debt / Capital index at a level not exceeding 3,5 till performance target Debt / Capital for 2023 will be identified in accordance with recommendations of rating agency
Maintain the Fund credit rating at a level not lower than sovereign rating during the whole period of implementing Development Strategy 3
Increase transparency of business and level of trust by people
Increase share of SME entities which have been supported against the total number of actively operating SME entities at the market from 4,6% in 2014 to 11,2% in 2023.
Maintain awareness extent of the Fund among people at a level not lower than 85% during the whole period of implementing Development Strategy

10. Ensuring financial support for SMB entities
Strategic areas of development
Ensuring financial support for SMB entities
Tasks
PERFORMANCE COEFFICIENT 1
Increase volumes of financial support for SMB
Increase volumes of assets against GDP from 0,57% in 2014 to 0,63% by 2018, 0,74% by 2023.
Increase the share of credit portfolio from 206 milliard tenge in 2014 to 391 milliard tenge in 2018, 869 milliard tenge in 2023.
Maintain the share of credit portfolio in total assets at the level 94% by 2023.
Increase volume of funds allocated for developing entrepreneurship by financial programs from 328 milliard tenge in 2014 to 507 milliard tenge in 2018, 583 milliard tenge in 2023. 2
Extend areas of cooperation and financing mechanisms / co-financing mechanisms of SMB jointly with financial institutes
Multiply co-financing for SMB entities on the part of second tier banks by credits granted under conditional financing program to 1:2 value in 2023. 3
Attract extra funding at domestic and external markets to increase financing volumes for SMB
Increase the share of attracted funds for financing SMB entities out of extra- budgetary resources from 20% in 2014 to 40% in 2023.

11. Ensuring financial support for SMB entities
Strategic areas of development
Ensuring financial support for SMB entities
Increase volumes of financial support for SMB
Provide finance for SMB entities through second tier banks
Provide finance for leasing deals of SMB entities
Develop microfinance sector
Subsidize fee rate by credits for SMB entities and leasing deals
Guarantee credits of SMB entities
Extend areas of cooperation and financing mechanisms / co-financing mechanisms of SMB jointly with financial institutes
Bring multiplier value of co-financing SMB projects by second tier banks to 2 by 2013.
Launch targeted regional and branch-wise programs
Attract extra funding at domestic and external markets to increase financing volumes for SMB
Foreign and domestic capital markets : - ABR funds (2, 3 tranches), in prospect EBRR, World Bank and others. - attract funds due to issuing securities (within limits of funds out of National Fund of RK)
Funds of ЕА and its DO
Attract funds of RB, Monitoring and Assessment
Maintain level of Fund credit rating

12. Developing competencies of SMB entities
Strategic areas of development
Developing competencies of SMB entities
Tasks
PERFORMANCE COEFFICIENT 1
Develop infrastructure of consulting services for entrepreneurs
Increase number of clients of entrepreneurship support centers from 33,2 thousand SMB entities in 2014 to 188 thousand SMB entities in 2023. 2
Training entrepreneurs and increasing competencies
Increase number of participants of training programs from 22,5 thousand people in 2014 to 25,5 thousand people in 2023.
Increase share of training program participants opened their own business from 10% in 2014 to 25% by 2023.
Increase satisfaction degree among entrepreneurs by held training from value at least 80% in 2014 to value 85% by 2023. 3
Introduce common informational platform for SMB and develop distance consulting methods
Increase number of clients received distance services from 36,5 thousand people in 2014 to 146 thousand people in 2023.

13. Developing competencies of SMB entities
Strategic areas of development
Developing competencies of SMB entities
Develop infrastructure of consulting services for entrepreneurs
Oblast – stationary entrepreneur service centers on the basis of regional branches of the Fund. 17 centers
Mono town – stationary entrepreneurship support centers centers
Region – стационарные stationary entrepreneurship support centers in regional centers and small towns of Kazakhstan centers
Mobile entrepreneurship support.centers. 14 centers
Training entrepreneurs and increasing competencies
Train the beginners and actively operating entrepreneurs
Train SMB top management
Business on-the-job training
Provide support for attracting foreign experts as mentors in enterprises of Kazakhstan
Train young entrepreneurs under 29 years old
Monitor provision of service support
Promote and take populist measures to propagate entrepreneurship ideas through explaining state support measures among broad segments of the population
Introduce common informational platform for SMB and develop distance consulting methods
Business portal services
Call center services
Introduce CRM-system
Attract sponsor support via “Damu-Komek” site for disabled entrepreneurs
Informational-analytical support (issue report on current state of SMB development in Kazakhstan and in regions; arrange regular marketing researches; hold Round tables and Forums of SME)

14. Expected results No. Index 2014 2018 2023
Building effective institute for development integrated in National Management Holding “Baiterek” JSC.
Ensuring break even level of operational and financial performance results 1
ROA, Return On Assets, %
1,09
1,1
1,2 2
ROE, Return On Equity, %
2,07
2,5 3
Business cost-effectiveness, %
19,5
19,7
20,5 4
Weighted average return - internal rate of return, %
6,0 5
Operating productivity, thousand tenge
37 592
59 523
63 690 6
NI margin, %
17,3
17,8
18,5 7
Loan portfolio quality (level of provisions against loan portfolio), %
5,2 8
Share of local content in procurements of the Fund:
8.1
Goods, % 60 64 70
8.2
Works and services, % 90 94 96
Increase effectiveness of managing financial resources 9
Debt/Capital, %
0,8
3,5 -* 10
Credit rating
ВВВ+
Not lower than sovereign
Increase transparency of business and level of trust among people 11
Share of SMB entities which have been provided with support against the total number of actively operating SMB entities in the market , %
4,6
8,6
11,2 12
Awareness degree of the Fund among population, %
85%
Not lower than 85%
* Index will be specified in accordance with recommendations of rating agency

15. Expected results No Index 2014 2018 2023
Strategic area 1. Providing financial support for SMB entities
Increase volumes of financial support for SMB 13
Volume of assets against GDP, %
0,57
0,63
0,74 14
Credit portfolio, milliard tenge
206
391
869 15
Share of credit portfolio of total assets, % 94 16
Volume of funds allocated for developing entrepreneurship under financing programs, milliard tenge
328
507
583
Extend areas of cooperation and financing mechanisms /
co-financing mechanisms of SMB jointly with private financial institutes 17
Multiplier value of co-financing SMB projects on the part of second tier banks by credits granted under programs of conditional fund investment -
1:1
1:2
Attract extra funding at domestic and external markets to increase financing volumes for SMB 18
Share of attracted funds for financing SMB entities out of extra-budgetary resources, % 20 36 40
Strategic area 2. Developing competencies of SMB entities
Develop infrastructure of consulting services for entrepreneurs 19
Increase number of clients of entrepreneurship support centers, number of persons.
33 280
Training entrepreneurs and increasing competencies
Number of participants of training programs, number of persons.
22 500
24 000
25 500 21
Share of training program participants opened their own business, % 10 25 22
Satisfaction degree among entrepreneurs by held training, %
At least 80
At least 85
Introduce common informational platform for SMB and develop distance consulting methods 23
Number of the Fund clients received distance services, number of persons.
36 500
73 000

16. Thank you for your attention
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