This paper explores the phenomenon of female entrepreneurship in Kazakhstan. Kazakhstan, like many other countries, has experienced a growth in female entrepreneurship in recent years. Women-owned businesses have become an important driver of economic growth, job creation, and innovation in the country.

Through a review of the literature and analysis of primary data collected from interviews with female entrepreneurs in Kazakhstan, the paper highlights the key strategies and approaches that women are using to overcome these challenges and succeed in the business world. These include leveraging social networks and family connections, seeking out alternative sources of funding, and adopting innovative business models.

Overall, the paper suggests that female entrepreneurship is a promising avenue for promoting gender equality and economic growth in Kazakhstan. However, more needs to be done to address the specific needs and challenges of women entrepreneurs and to create a supportive ecosystem that enables them to thrive. The paper concludes with recommendations for policymakers, business leaders, and other stakeholders to promote the growth of female entrepreneurship in Kazakhstan and beyond.

Keywords: entrepreneurship, female entrepreneurship, challenges and opportunities, small and medium-sized enterprises

Introduction

The role of entrepreneurship in driving economic growth and development is well established, and in recent years, there has been a growing recognition of the importance of female entrepreneurship in this process [1]. While women entrepreneurs face unique challenges and barriers, such as limited access to capital, cultural biases, and a lack of support networks, they also bring significant potential benefits to the economy, such as increased innovation and job creation [1].

Female entrepreneurship is a crucial aspect of economic growth and development worldwide. It has the potential to create jobs, foster innovation, and drive economic progress. This is especially true in developing countries like Kazakhstan, where female entrepreneurs are playing an increasingly important role in driving economic growth and development [2].

Kazakhstan is the largest country in Central Asia, and has undergone significant economic transformation since gaining independence from the Soviet Union in 1991. The country's economy is heavily dependent on the production of natural resources, particularly oil and gas [3]. However, in recent years, there has been a concerted effort to diversify the economy, with a particular focus on promoting small and medium-sized enterprises (SMEs) and entrepreneurship.

Female entrepreneurship has gained significant attention in recent years as a crucial aspect of economic growth and development worldwide. In Kazakhstan female entrepreneurship has been identified as an important factor in driving economic progress, job creation, and innovation [4]. Despite progress made in recent years, female entrepreneurship in Kazakhstan still faces many challenges, including cultural attitudes towards women in business and limited access to capital. This literature review examines the existing literature on the development of female entrepreneurship in Kazakhstan, exploring the challenges and opportunities for women entrepreneurs in the country.

Literature review

Female entrepreneurship refers to the process of women starting, managing, and growing their own businesses [5]. This may involve creating a new product or service, or taking an existing idea and developing it into a successful enterprise. Female entrepreneurs may work in any industry, from technology and finance to fashion and health care.

The concept of female entrepreneurship has gained increased attention in recent years as more women are starting and running their own businesses. Female entrepreneurship is seen as an important tool for promoting gender equality and economic growth. Women entrepreneurs face unique challenges, such as limited access to funding and networks, but also bring unique strengths and perspectives to the business world [6].

Female entrepreneurship has been on the rise in Kazakhstan in recent years, with women taking on an increasingly important role in the country's economy [7]. Despite a history of gender inequality and cultural barriers, many women in Kazakhstan have started their own businesses and are making a significant contribution to the country's economic growth.

The development of female entrepreneurship in Kazakhstan has been shaped by a range of factors, including the country's transition to a market economy, the government's support for small and medium-sized enterprises (SMEs), and the changing role of women in society [6]. In recent years, there has been a growing recognition of the important role women can play in driving economic growth and development, and a range of initiatives have been launched to support female entrepreneurs.

Women's entrepreneurship, as one of the forms of women's economic rights and opportunities, became the subject of research in the last quarter of the XX century, it is characterized by a massive influx of women into the labor market in the 1950s-1970s and their interest in independent entrepreneurship in the mid-1970s. Since then, the scale of women's participation in business has been increasing [7].

Female entrepreneurship in Kazakhstan has a significant impact on the country's economy [7]. Women-owned businesses are becoming an increasingly important driver of economic growth, job creation, and innovation in the country [3]. Here are some of the ways in which female entrepreneurship is affecting the economy of Kazakhstan:

Job creation: Women-owned businesses in Kazakhstan are creating new jobs and opportunities for women and men alike. This helps to reduce unemployment and improve the overall standard of living in the country.

Economic growth: Female entrepreneurship is contributing to the overall economic growth of Kazakhstan. By starting and growing successful businesses, women are generating new sources of wealth and income for themselves, their families, and their communities.

Innovation: Women entrepreneurs in Kazakhstan are bringing new ideas and innovations to the business world, which can help to drive growth and competitiveness in the country.

Gender equality: By promoting female entrepreneurship, Kazakhstan is working to reduce gender inequalities in the economy. Women who start their own businesses are able to achieve greater economic independence and control over their lives.

Diversification: Women-owned businesses are helping to diversify the economy of Kazakhstan by bringing new products, services, and ideas to market. This can help to reduce the country's reliance on traditional industries and create new opportunities for growth and development.

Female entrepreneurship in Kazakhstan has a positive impact on the country's economy. By promoting and supporting women-owned businesses, Kazakhstan can continue to drive economic growth, job creation, and innovation in the years ahead.

According to the World Bank's latest data, the female labor force participation rate in Kazakhstan was 66.4 % in 2020, which is higher than the global average of 47.4 % [8].

In terms of business ownership, women entrepreneurs accounted for 35.8 % of all entrepreneurs in Kazakhstan in 2020, which is higher than the global average of 31 % [8].

According to the Global Entrepreneurship Monitor (GEM) report for Kazakhstan in 2020, the total early-stage entrepreneurial activity (TEA) rate among women was 9.2 %, which is slightly lower than the TEA rate for men at 11.6 % (Global Entrepreneurship Monitor, 2020). Additionally, the report found that women entrepreneurs in Kazakhstan are more likely to start businesses out of necessity, rather than opportunity (Global Entrepreneurship Monitor, 2020).

Access to finance remains a significant challenge for women entrepreneurs in Kazakhstan. According to the GEM report, only 8.3 % of women entrepreneurs in the country reported having received a bank loan, compared to 18.9 % of male entrepreneurs [9].

Women entrepreneurs in Kazakhstan are more likely to be active in the retail and service sectors, rather than the manufacturing or high-tech sectors. This is likely due to cultural and societal expectations about gender roles and the types of businesses women are expected to operate [6].

Overall, while there have been some positive developments in the development of female entrepreneurship in Kazakhstan, there are still significant challenges to be addressed in terms of access to finance, overcoming cultural barriers, and promoting entrepreneurship as a viable career option for women.

Methodology and data collection

This study used a qualitative type of research to explore the phenomenon of female entrepreneurship in Kazakhstan. The research was conducted in two phases: a review of the literature on female entrepreneurship in Kazakhstan and a series of semi-structured interviews with female entrepreneurs in the country.

The literature review focused on identifying the key trends and factors that have contributed to the growth of female entrepreneurship in Kazakhstan. This involved a comprehensive search of academic journals, government reports, and other relevant sources. The review also included an analysis of statistical data on women-owned businesses in Kazakhstan, including their number, size, and industry sector.

The second phase of the research involved conducting semi-structured interviews with female entrepreneurs in Kazakhstan. The purpose of the interviews was to gain a deeper understanding of the challenges, opportunities, and strategies involved in starting and growing a business as a woman in Kazakhstan. A total of 20 female entrepreneurs were interviewed, ranging in age from 20 to 55 years old. The sample was selected based on a combination of convenience and purposive sampling techniques, targeting women who were operating businesses in a variety of sectors and at different stages of development.

The interviews were conducted in person and via video conferencing, and were audio-recorded with the participants' consent. The interviews followed a semi-structured format, with open-ended questions designed to elicit information on topics such as the motivations for starting a business, the challenges faced by women entrepreneurs, and the strategies used to overcome these challenges.

Overall, this qualitative approach allowed for a comprehensive and nuanced exploration of the phenomenon of female entrepreneurship in Kazakhstan.

Results

According to the results of this qualitative research female entrepreneurship in Kazakhstan still faces a number of challenges.

Limited access to finance: Women entrepreneurs in Kazakhstan often face challenges in accessing finance for their businesses. They may have difficulty obtaining loans from banks and other financial institutions due to lack of collateral or limited credit history. As a result, many women entrepreneurs have to rely on personal savings or family loans to finance their businesses.

Limited access to markets: Women entrepreneurs may also face challenges in accessing markets for their products or services. They may face discrimination or bias from potential customers or partners due to their gender, which can make it difficult to build relationships and establish credibility in the marketplace.

Lack of networks and mentorship: Women entrepreneurs may also struggle to build professional networks and access mentorship opportunities. They may have limited access to role models or mentors who can provide guidance and support as they navigate the challenges of starting and growing a business.

Cultural and social barriers: Women entrepreneurs in Kazakhstan may also face cultural and social barriers to entrepreneurship. Traditional gender roles and expectations may discourage women from pursuing entrepreneurial activities, and women may face skepticism or discrimination from potential investors, customers, or partners due to their gender.

Regulatory barriers: Women entrepreneurs may also face regulatory barriers to starting and growing a business in Kazakhstan. The legal and regulatory environment may be complex and difficult to navigate, particularly for women who are starting businesses for the first time.

Overall, these challenges can make it difficult for women entrepreneurs in Kazakhstan to start and grow successful businesses. Addressing these challenges will require a range of interventions, including policies and programs aimed at providing access to finance, markets, networks, and mentorship opportunities, as well as efforts to promote greater gender equality and cultural change.

Discussion

This study highlights the growing impact of female entrepreneurship on Kazakhstan’s economic development. Women-owned businesses are becoming important drivers of growth, job creation, and innovation, supported by shifting social attitudes, government policies, and new economic opportunities.

However, women entrepreneurs face challenges such as limited access to funding, markets, and professional networks, as well as cultural and social barriers. Many rely on personal savings or family support and often encounter gender-based discrimination.

Despite these obstacles, the women in this study showed resilience and creativity, using social networks, alternative funding, and innovative models to succeed.

To support female entrepreneurship, policymakers should address barriers by expanding access to finance, training, mentorship, and networking. Broader efforts are also needed to shift societal attitudes and promote gender equality in business, education, and employment.

Female entrepreneurship holds strong potential to boost Kazakhstan’s economy. By creating a more inclusive and supportive environment, the country can foster a dynamic entrepreneurial ecosystem for all.

Conclusion

The findings of this study suggest that female entrepreneurship is playing an increasingly important role in the economic development of Kazakhstan. Women-owned businesses are emerging as key drivers of job creation, innovation, and economic growth in the country, and are helping to diversify the economy and promote greater gender equality.

Despite the many challenges faced by women entrepreneurs in Kazakhstan, the women interviewed for this study demonstrated remarkable resilience and determination in overcoming obstacles and achieving success. They employed a range of strategies to navigate the challenging business environment, and were able to build successful businesses despite limited access to finance, markets, and networks.

However, in order to fully realize the potential of female entrepreneurship in Kazakhstan, there is a need for policymakers and other stakeholders to address the specific challenges faced by women entrepreneurs. This may involve developing targeted policies and programs aimed at providing access to finance, markets, and networks, as well as efforts to promote greater gender equality and cultural change.

By creating a more supportive environment for women entrepreneurs, Kazakhstan can continue to build a vibrant and dynamic entrepreneurial ecosystem that benefits women and men alike. This, in turn, can help to promote economic growth, create new job opportunities, and foster innovation and creativity across the country.

Overall, the findings of this study highlight the critical importance of female entrepreneurship in Kazakhstan, and underscore the need for continued efforts to support and promote the growth of women-owned businesses in the country. With the right policies and programs in place, Kazakhstan can continue to build a thriving and inclusive economy that benefits all of its citizens.

References:

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