Open AccessMECHANISMS FOR REDUCING ECONOMIC RISKS IN THE DEVELOPMENT OF SMALL AND MEDIUM BUSINESSES OF THE REPUBLIC OF KAZAKHSTAN
Author(s) -
A.N. Nurzhanova,
Shakizada U. Niyazbekova,
Bibigul Issayeva,
Anna Kamyshova,
Elmira Popova
Publication year - 2021
Publication title -
vestnik nacionalʹnoj akademii nauk respubliki kazahstan
Language(s) - English
Resource type - Journals
eISSN - 2518-1467
pISSN - 1991-3494
DOI - 10.32014/2021.2518-1467.105
Subject(s) - business , the republic , order (exchange) , small business , small and medium sized enterprises , diversity (politics) , economic system , market economy , industrial organization , economics , marketing , finance , political science , philosophy , theology , law
The economy of the Republic of Kazakhstan has been operating in recent years in terms of uneven development of the world economy. The active course of radical transformations in the economy of Kazakhstan, embraced all spheres of Kazakhstani society life and the state. The transition from a centrally managed to a market system of business and management has led to the development of business and, accordingly, to the emergence of various types of economic risks in this area of activity, which especially affects small and medium–sized businesses, as well as the country's economy as a whole. A significant increase in unprofitable enterprises allows us to conclude that they functioned without taking into account the risk factor in the activities of business structures, without which it is difficult to obtain the expected results of activity that are adequate in real conditions. Creating an effective mechanism for the functioning of the enterprise on the basis of the concept of risk–free management is impossible. Therefore, an indispensable condition for small and medium–sized businesses (hereinafter referred to as SMEs) is the freedom of search, mobility and the choice of methods of economic actions with their diversity, taking into account the minimum reduction of risky situations in their activities. It follows that it is necessary not to avoid risk, but to be able to assess the degree of entrepreneurial risk and be able to manage it in order to reduce it, to find effective ways to minimize them in the economy of Kazakhstan, including for small and medium–sized businesses.