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Small and medium-sized businesses (SMEs) in Kazakhstan are experiencing unprecedented pressure، leading to a sharp decline in profitability. Gulban Maigarin، Chairperson of the "Atameken" National Chamber of Entrepreneurs' Committee for SME Development and founder of the Lanzhou restaurant chain، highlighted the critical situation.

Rising Taxes and Falling Consumer Power

Maigarin explained that entrepreneurs are facing a double blow: increasing taxes coupled with a significant decrease in the population's purchasing power. This combination has resulted in a record low in business efficiency.

"The average check has decreased by about 30%، and the number of visitors to catering and retail outlets is also declining. Business efficiency is currently at its lowest point،" Maigarin stated.

Previously، trade outlets could achieve profitability of up to 6%. However، this figure has now dropped to as low as 1%. Many businesses have depleted their financial reserves، often referred to as a "safety cushion."

Business Fragmentation Due to Tax Changes

Changes in the tax system have led to a noticeable fragmentation of companies. Businesses with a monthly turnover of 250 million tenge are reportedly being forced to split into multiple legal entities. This is because partners are finding it unsustainable to operate under the previous business structure.

"An entrepreneur always looks for an efficient solution، but they won't work at a loss. Unable to bear the current tax burden، many business owners are breaking up their companies،" Maigarin noted.

She added that signs of crisis are appearing beyond official statistics. Entrepreneurs are beginning to delay salary payments، and employees are facing difficulties with their loan repayments. With approximately 4.5 million people employed in the SME sector، these negative trends are a cause for concern.

Navigating the Crisis with Data

The decline in revenue necessitates a strengthening of internal discipline within businesses. Maigarin urged entrepreneurs to enhance their management accounting and make decisions based solely on financial indicators، devoid of emotion.

"All anti-crisis measures must be based purely on numbers and taken without emotion. Previously، it was possible to operate with a profitability of 15-20%. Now، every wrong step can be costly،" she advised.

Maigarin's own restaurant chain has reduced its staff by 25%، a situation she believes is mirrored across many market players. To navigate this crisis، she proposes cooperation and the formation of larger associations.

"In the context of globalization، scale is important not only for growth but also for survival. Customers choose clear brands and services. If three or four companies share marketing costs، these expenses are reduced،" she added.

The entrepreneur also called for a review of certain provisions in the Tax Code and an increase in business transparency. "Currently، the market is focused not on making money، but on survival. Systematic solutions are needed، both from the state and from entrepreneurs، to prevent mass closures،" Maigarin concluded.

This information was reported by the Infohub.kz news agency.