QAZTECH: E-commerce as a Driver of SME Growth and Employment
On January 14, 2025, the QAZTECH Technology Companies Alliance held a roundtable to discuss key steps to support small and medium-sized businesses (SMEs) and increase employment through the development of e-commerce. The discussion was conducted in collaboration with industry leaders and considered the interests of Kazakhstani consumers.
E-commerce is becoming a crucial tool for the development of SMEs in Kazakhstan. It opens new opportunities for entrepreneurs, including access to broader markets, expansion of sales geography, and attracting new customers. This sector contributes to job creation, increases state budget revenues, and enhances business transparency. Increased transparency strengthens consumer trust and simplifies companies' access to financing, creating conditions for sustainable growth.
At the same time, participants emphasized that the growing expansion of foreign online stores poses significant challenges for Kazakhstani businesses. These platforms operate under more favorable conditions because they:
As a result, their goods' cost is 25-30% lower than that of conscientious Kazakhstani companies. This undermines the competitiveness of local businesses, threatens job cuts, reduces budget revenues, and slows economic growth.
The key recommendation:
QAZTECH operates on its core principle of creating win-win solutions that harmoniously combine the interests of business, the state, and consumers. This approach formed the basis of recommendations already used by the Ministry of Trade and Integration (MTI) to develop new measures aimed at supporting the sector.
QAZTECH continues to actively work on creating conditions for SME growth, promoting employment, and unlocking the potential of e-commerce as a tool for sustainable economic development in Kazakhstan.
E-commerce is becoming a crucial tool for the development of SMEs in Kazakhstan. It opens new opportunities for entrepreneurs, including access to broader markets, expansion of sales geography, and attracting new customers. This sector contributes to job creation, increases state budget revenues, and enhances business transparency. Increased transparency strengthens consumer trust and simplifies companies' access to financing, creating conditions for sustainable growth.
At the same time, participants emphasized that the growing expansion of foreign online stores poses significant challenges for Kazakhstani businesses. These platforms operate under more favorable conditions because they:
- do not comply with Kazakhstani consumer protection laws,
- do not undergo certification or confirm product safety,
- do not pay customs duties, and only a third of such companies pay VAT.
As a result, their goods' cost is 25-30% lower than that of conscientious Kazakhstani companies. This undermines the competitiveness of local businesses, threatens job cuts, reduces budget revenues, and slows economic growth.
The key recommendation:
- To level the playing field for all market participants. Foreign online stores should adhere to the same requirements as Kazakhstani companies: paying taxes and duties, complying with product quality and safety standards, and protecting consumer rights.
- This will ensure fair competition, protect consumer interests, and support the development of domestic businesses.
QAZTECH operates on its core principle of creating win-win solutions that harmoniously combine the interests of business, the state, and consumers. This approach formed the basis of recommendations already used by the Ministry of Trade and Integration (MTI) to develop new measures aimed at supporting the sector.
QAZTECH continues to actively work on creating conditions for SME growth, promoting employment, and unlocking the potential of e-commerce as a tool for sustainable economic development in Kazakhstan.