Information systems in small and medium enterprises in Republic of Kazakhstan

Abstract

Small and medium enterprises (SMEs) are characterized by either the number of employees or level of assets or turnover or both across the world. In Asia/Pacific region, SMEs account for 90% of enterprises and provides 32 to 40% of employment. On the other hand, in Latin America, SMEs make up more than 98% of enterprises and more than 80% of employment. SMEs which consist of over 90% of enterprises in many countries are responsible for large number of innovations, product and services development and also contribute to the growth of the countries by creating employment, creating knowledge, investment opportunities and trade. Republic of Kazakhstan is no exception to these statistics and it has 16,066 SMEs registered in the Almaty blast alone. These SMEs are playing the same role in Republic of Kazakhstan as SMEs play elsewhere in the world. Looking into their importance in the world’s economy, big software vendors such as SAP, Microsoft, IBM and Oracle are targeting their products to meet the requirement of SMEs. They are providing solutions for both in-house implementation and also through SaaS (Software as a Service) model. The solutions include automating production processes, capturing, storing and integrating the data, and processing captured data for decision making and report generating. The paper presents some facts about application of information systems in SME sector in Kazakhstan. This study is mainly concerned about the type of information technology/information systems used in SMEs in Republic of Kazakhstan with respect to Almaty city. In addition, the paper presents the findings of the study with respect to barriers in implementing information systems, government support, role of web technology, benefits of using information systems and future trends regarding usage of information technology. This study is based on primary, as well as, secondary data. Primary data is specific to Almaty city only which is termed as financial capital of Republic of Kazakhstan. Key words: Small and medium enterprises, information systems, small and medium enterprise development authority (SMEDA), European commission.