The Role of Small and Medium Enterprises in Poverty Alleviation and Economic Well-Being
https://doi.org/10.47703/ejebs.v68i4.454
Abstract
In socio-economic development and poverty reduction, particularly in countries with agrarian economies and a high proportion of rural populations small and medium-sized enterprises (SMEs) are essential. Due to limited government resources for supporting social sectors, SMEs become means for job creation, household income growth, and economic stimulation. The purpose of this study is to examine the role of SMEs in well-being development and poverty reduction in Kazakhstan. For this purpose, there was conducted regression analysis and the study was focused on three main independent variables: SME share in GDP, employment in agriculture, and employment in individual entrepreneurship. The data covers the period from 2013 to 2023. The results showed that the SME contribution to GDP has a significant positive effect on household incomes and thus key role in enhancing economic well-being. Employment in individual entrepreneurship was directly associated with income growth and improved well-being, particularly in rural areas. Employment in agriculture demonstrated a dual effect: while it remained an essential source of income, its impact was constrained by low labor productivity and seasonality. However, crucial effect on poverty reduction and well-being improvement was achieved through the combined influence of SMEs, individual entrepreneurship, and agricultural employment. Thus, there is great need in diversifying income sources and adopting a comprehensive approach to economic development for effective poverty reduction.
Keywords
Individual Entrepreneurship Employment,
Small and Medium Enterprises,
Regional Economy,
Socio-Economic Development,
Sustainable Development,
Community Supported Agriculture,
Kazakhstan
Supporting agencies: Individual Entrepreneurship Employment, Small and Medium Enterprises, Regional Economy, Socio-Economic Development, Sustainable Development, Community Supported Agriculture, Kazakhstan
About the Authors
Munira Imramziyeva
Caspian Public University, Almaty, Kazakhstan
Kazakhstan
Kazakhstan
PhD, Associate Professor, Email: imya0907@mail.ru
Ainura Issayeva
Abai Kazakh National Pedagogical University, Sorbonne Institute-Kazakhstan, Almaty, Kazakhstan
Kazakhstan
Kazakhstan
Cand. Sc. (Econ.), Email: issaeva_ainur@mail.ru
Zora Dzhubalieva
Abai Kazakh National Pedagogical University, Almaty, Kazakhstan
Kazakhstan
Kazakhstan
Cand. Sc. (Econ.), Email: zora.dzhubalieva@gmail.com
Assel Tapalova
NJSC “Zhangir Khan West Kazakhstan Agrarian-Technical University”, Uralsk, Kazakhstan
Kazakhstan
Kazakhstan
Master of Economics, Email: tapalova-a@mail.ru
Kamar Beketova
Korkyt Ata Kyzylorda University, Kyzylorda, Kazakhstan
Kazakhstan
Kazakhstan
Cand. Sc. (Econ.), Associate Professor, Email: kamar82@mail.ru
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For citations:
Imramziyeva M., Issayeva A., Dzhubalieva Z., Tapalova A., Beketova K. The Role of Small and Medium Enterprises in Poverty Alleviation and Economic Well-Being. Eurasian Journal of Economic and Business Studies. 2024;68(4):101–112. https://doi.org/10.47703/ejebs.v68i4.454
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