Regional Differentiation of Small and Medium Business Development in Kazakhstan

A. Sugurova, Shynar Isabekovna Kossymbayeva, А.А. Макенова, Elmira Telagussova, Zh. Basshieva

2026

Full text Open access: Gold Metadata (CSL-JSON)
DOI 10.47703/2789-8253-2026-2-71-88
Data confidence 70 medium
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Abstract

The development of small and medium-sized businesses is considered one of the key factors for ensuring economic growth, employment, and sustainable regional development. The purpose of the study is to identify the structure of regional development among small and medium-sized businesses in Kazakhstan and to identify groups of regions with different levels of entrepreneurial activity. The methodological basis of the study includes data standardization using the Z-score method, principal component analysis (hereinafter – PCA) and cluster analysis using the Ward method. The study uses data from the Bureau of National Statistics for the period 2018-2024. The results of the study revealed significant interregional differences in the development of small and medium-sized businesses. The highest values of the indicators were recorded in the cities of Almaty and Astana. Thus, in Almaty, the standardized values for gross value added, output, employment, and the number of enterprises were 3.22, 3.11, 3.59, and 2.92, respectively. In Astana, the corresponding figures were 1.76, 1.92, 1.53, and 1.70. Cluster analysis identified two stable clusters of regions, with an intercluster sum of squares of 62.94 and a total sum of squares of 80.71, indicating high interregional differentiation. The results of the study showed that growth in the number of enterprises is not accompanied by proportional increases in output, employment, and value added, indicating structural heterogeneity in the development of small and medium-sized businesses across regions of Kazakhstan.