Ivaylo Izvorski, Chief Economist for Europe and Central Asia at the World Bank, has analyzed the business environment in the countries of the region. According to him, the policy of supporting small and medium-sized enterprises (SMEs) does not lead to the expected results, and the dominance of small companies hinders economic growth.

The expert noted that in countries with high incomes, growth is ensured by internal factors - innovation and technology implementation. At the same time, in middle-income countries, it is mainly due to the redistribution of resources rather than the creation of new value.

According to the World Bank representative, the focus on supporting SMEs in Central Asia is misguided. There are too many small businesses in the region, but not enough large companies that could increase productivity and create jobs.

“In Kyrgyzstan, as in any small country, many companies deliberately stay small to avoid a higher tax burden. This results in businesses not seeking growth, innovation and entry into new markets, but rather focusing on survival in the existing environment. As a result, the economy loses potential points of development,” said Ivaylo Izvorski.

Among the factors influencing the formation of a dynamic economic ecosystem, the expert emphasized competition, long-term financing, risk management and personnel training. He emphasized that it will be difficult to achieve sustainable growth without these components.