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Kazakhstan: Emerging Issues of Female<br />

Entrepreneurship (1)<br />

Anatoly V. Zhuplev Loyola Marymount University 7900 Loyola Boulevard Los Angeles,<br />

CA 90045-8385 Tel: (310) 376-4712 home (310) 338-7414 office<br />

Jeanne Almaraz Loyola Marymount University 7900 Loyola Boulevard Los Angeles,<br />

CA 90045-8385 Tel: (310) 338-2989 office Fax: (949) 759-4964<br />

Asylbeck B. Kozhakhmetov Almaty Management School P.O. Box 480057 58 Zhandosov<br />

St., Almaty Republic of Kazakhstan Tel: 73272-457003 office<br />

Janat Berdalina KPMG Janat 105 Abulai Khan Ave Almaty 480091 Republic of<br />

Kazakhstan Tel: 73272-622694 office<br />

Abstract<br />

This article explores the emergence of female entrepreneurship in Kazakhstan under the<br />

market transition to a more open competitive environment. In this traditional culture<br />

women have been publicly "invisible" and inactive in entrepreneurship. Economic<br />

survival and an increasing international influence are changing such traditions. A survey<br />

in Kazakhstan identified current entrepreneurial trends, motivations, and gender-related<br />

issues. Entrepreneurial motivations among females are found to be more internally- and<br />

family-driven than among males. The survey found no substantial gender-related<br />

differences in perceived difficulties of entrepreneurship. As Kazakhstan moves into the<br />

mid-term of its socio-economic development, the emergence of female entrepreneurship<br />

is likely to continue, integrating elements of Kazakhstani cultural traditions, European<br />

social market concepts and American rationality.<br />

Introduction<br />

This research project traces the history of the Kazakh nation, the market transition<br />

currently underway and the valiant attempt of the government at privatization. The<br />

discussion then turns to the small business sector focusing specifically on the emergence<br />

of female entrepreneurs in Kazakhstan. As social and political change have spearheaded<br />

the transition to a market economy, women are increasingly undertaking entrepreneurial<br />

ventures. These choices are driven by financial necessity and by the influence of western<br />

culture on the traditional culture of Kazakh households.<br />

At a women's convention held in Almaty, Kazakhstan's capital, a questionnaire was<br />

distributed to gather demographic information on women entrepreneurs and to identify<br />

the motivations and concerns of women entrepreneurs in the transition economy of<br />

Kazakhstan. Questions were also posed to query differences in issues among male versus<br />

female entrepreneurs. This paper will present the results of this questionnaire.


The History of Kazakhstan<br />

There is no exact agreement on the origination of the Kazakh (2) people, largely because<br />

of the lack of contemporary sources (Olcott, 1987, p. 3). Over the centuries, various parts<br />

of Kazakhstan were incorporated into different empires. The country was integrated into<br />

Russia in the 18th century and occupied by the Red Army after the revolution of 1917<br />

and Civil War. In 1920, the Soviet government established the Kyrgyz Autonomous<br />

Republic, and in 1925 changed its name to Kazakh A.S.S.R. From 1927 the Soviet<br />

government pursued a vigorous policy of transforming the Kazak nomads into a settled<br />

population and of colonizing the region with Russians and Ukrainians.<br />

Kazakhstan formally became a constituent (union) republic of the Soviet Union in 1936.<br />

Under Nikita Khrushchev, the role of Kazakhstan within the Soviet Union increased<br />

dramatically. The Virgin and Idle Lands program launched in 1953 opened up the vast<br />

grasslands of northern Kazakhstan to wheat farming by Slavic settlers. As the Soviet<br />

Union collapsed, Kazakhstan declared sovereignty on October 25, 1990 followed by<br />

gaining its full independence on December 16, 1991 (Central Asia: "The Countries of<br />

Central Asia" Britannica Online [Accessed 18 August 1998]).<br />

Market Transition<br />

Despite its huge territory and some important natural resources, Kazakhstan is relatively<br />

unknown to the world. It is the largest state in Central Asia, the ninth largest in the world,<br />

and second in size after Russia in the Newly Independent States (NIS). Larger than<br />

Western Europe and approximately four times the size of Texas, Kazakhstan is among<br />

the most sparsely populated countries in the world, with just 16.1 persons per square<br />

mile.<br />

With a total population of 16.9 million (46% Kazakh, 35% Russian, 5% Ukrainian, 14%<br />

other nationalities), Kazakhstan's work force is well educated. Nearly the entire<br />

population is literate, with 64% of the population 15 years and older have a secondary<br />

education, and 10% having attained higher education (Worldfact Book, 1997).<br />

President Nursultan Nazarbayev, an ethnic Kazakh, is not following Moscow's bid for<br />

democracy at any price. He has instead declared his admiration for the political models of<br />

Singapore and other Asian countries (Fletcher, 1994). Nazarbayev's fiscal programs and<br />

commitment to Westernization of the Kazakh economy make him a favorite of foreign<br />

investors. But his domestic agenda involves a tricky juggling act between a program of<br />

"Kazakhstanization", which seeks to reaffirm traditional culture and bolster the status of<br />

indigenous Kazakhs, and multiculturalism (Reyen, 1996).<br />

The government plays a leading role in directing national economic development. Since<br />

1995, a number of presidential decrees were signed into law, addressing among other<br />

things the following: banking, bankruptcy, customs, taxes, stock exchanges, insurance,


oil, land, aviation, accounting, and electric power. As a part of its reforms, the<br />

government encourages small and medium-size businesses in rural areas, in order to<br />

employ the available workforce locally in labor-intensive activity and to discourage<br />

further urbanization. This is particularly understandable given that in 1989 the revenue<br />

share of the poorest two- fifths of the population was only 23% of all personal revenues;<br />

in 1994 this share dropped to 19%. The upper one-fifth had the same share - 34% - in<br />

both years, and the middle class gained an increasing share. A study of 6,000 households<br />

in August 1995 identified 84% of the rural, and 44% of the urban, households living<br />

below the poverty line.<br />

The Move to Privatization<br />

Privatization is the key part of the economic transformation in Kazakhstan. Its program<br />

began in 1991 and currently includes four elements: (a) privatization of small businesses,<br />

(b) mass privatization, (c) privatization in agriculture, and (d) individual project<br />

privatization.<br />

Privatization of small businesses involves the privatization of wholesale and retail trade<br />

companies, food service companies, cargo and passenger transportation and services<br />

formerly owned and operated by the state. <strong>Business</strong>es that employ fewer than 200 people<br />

are sold at auctions for cash. Their sales provide government earnings and guarantees that<br />

the industry is not going to be monopolized. Besides, the relatively low price of these<br />

businesses makes them affordable which allows expansion of the number of small private<br />

owners.<br />

Mass privatization involves creation of conditions for the public to exercise its right to<br />

sell and buy securities. This direction includes all the companies that are not part of the<br />

agroindustrial complex and are not subject to small business or individual project<br />

privatization.<br />

Privatization in agriculture involves companies that process agricultural products and<br />

provide services. Privatization of the agricultural sector is being implemented alongside<br />

mandatory allocation of property and land shares to new owners. The public can buy<br />

former government-owned agricultural businesses; a partial transfer also is allowed.<br />

Individual project privatization involves large companies that have a monopoly position<br />

(excluding companies that export their product) and play a strategic role in the overall<br />

economy. Individual projects are sold to the highest bidder under certain conditions, or at<br />

auctions, through tenders, management contracts, and through public offerings<br />

(Rysbekov, 1995).<br />

Problems in the Privatization Process<br />

Privatization in Kazakhstan has been impeded by a number of factors. First, inventory of<br />

the small businesses subject to privatization was not completed, and, as a result, a<br />

significant number of companies to be sold at auctions were withdrawn. Second, little


interest was shown on the part of the population in the privatization of small businesses<br />

because of the reduction in buying power and auctioning of less attractive businesses.<br />

Third, attempts were made on the part of management and workers of some small<br />

businesses to discourage selling of their companies. Fourth was the closing of companies<br />

for a long time due to the lack of funds for repairs and inability to start production, trade,<br />

or any other activity. Finally, privatization was impeded by the resistance on the part of<br />

local authorities who lost both businesses and their share in the profits of these<br />

businesses.<br />

Today the level of denationalization is fairly high. The Government has been successful<br />

in privatizing many small- and medium-size firms, and is working to privatize large-scale<br />

industrial complexes, particularly in the oil and gas sector. In industry, state-owned<br />

enterprises account for 40% of overall production volume; in agriculture, the state's share<br />

is only 3%. However, the main goal of creating an efficient private sector and a<br />

competitive environment has not yet been implemented (Rysbekov, 1995). Living<br />

standards for many citizens continue to decline. According to several surveys, nearly<br />

35% of citizens live below the government-defined poverty line of $50 per month<br />

(Human Rights Report, 1998).<br />

<strong>Small</strong> <strong>Business</strong> Sector<br />

In the mid-1990s, there were an estimated 2,000-3,000 industrial enterprises in<br />

Kazakhstan, and several dozen huge enterprises accounted for a disproportionate share of<br />

total production. By 1995, two- thirds of this production was concentrated in heavy<br />

industry, including 17% in machine building, 16% in energy, and 9% in chemicals. Light<br />

industry and food processing each account for 15% of production. The small business<br />

sector is comprised of more than 3500 cooperatives, 15,000 small enterprises, 11,000<br />

private enterprises, and 15,600 farms. Among existing small enterprises, most operate in<br />

either wholesale and retail trade, or in catering businesses. Historically, small business<br />

and entrepreneurship were never viable avenues in Kazakhstan's political and socioeconomic<br />

development. At the present time, the small and medium-sized business sectors<br />

in Kazakhstan are weak, having little in common with a genuine full-fledged<br />

entrepreneurial venture, involving substantial investment. Currently, the main<br />

entrepreneurial activities focus on broker operations and operations with currency and<br />

trade (Arynov and Zhulamanov, 1994, p.4,5).<br />

Status of Women in Kazakh Culture<br />

From a cultural perspective, both Kazakh traditional values and the effects of Soviet rule<br />

have defined the role of women in the economic development of Kazakhstan over the<br />

past seven decades. Traditionally, marriage and dedication to the family were central in<br />

the life of a Kazakh woman. Women were generally married by age thirteen or fourteen,<br />

men by fifteen or sixteen. Parents arranged marriages, sometimes as early as ten years<br />

before the event. The Kazakhs have a much higher birthrate than the Russians do: while<br />

the size of the average Kazakh family size is 5.5, Russian families average 3.3 members.<br />

A survey of Kazakh women in the mid 1970s indicated that most Kazakh women both


wanted and expected to have five or more children, whereas the Russians anticipated<br />

having only two or three (Olcott, 1987, p.250). The current capitalist transition has<br />

created conflict with this traditional demographic pattern making it difficult for Kazakh<br />

women to combine their family role with a full-time corporate job or running a business.<br />

In the late 1980s-early 1990s, women comprised a sizable share of the labor pool. By the<br />

mid-1990s, 2.3 million women were employed in the economy of Kazakhstan (47% of<br />

the total workforce). In some industries and professions (3), the share of female<br />

employment was quite high: 63% in wholesale and retail trade, catering and consumer<br />

goods distribution; 84% in medical care, sports and welfare; 74% in public education;<br />

68% in entertainment, culture and arts; 56% in science and scientific services; 73% in<br />

banking and insurance, and 48% in government. Women also comprised 53% of those<br />

enrolled at higher education institutions and 59% of the junior college enrollment in<br />

Kazakhstan (O Polozhenii Sem'i i Zhenschin, 1996). Although structurally this pattern of<br />

educational access and employment still remains, it is shifting under the market<br />

transition. One event driving this shift is the growing pressure of change resulting in<br />

downsizing, an occurrence that often results in women losing their positions to men.<br />

Trends Driving the Emergence of Female Entrepreneurship<br />

In spite of the fact that men were considered the "head of the family", responsible for its<br />

overall well-being, even during the time of Soviet leadership it was difficult to feed an<br />

entire family if only one spouse worked. Such financial constraints challenged Kazakh<br />

women's traditional homebound status and pushed them towards outside employment.<br />

The Soviet Constitution guaranteed women the equality of rights in all aspects of life, but<br />

did not change the woman's role in a family. Thus, women had to work full time and at<br />

the same time take care of the family. That is why employers and employees often<br />

tolerated the underperformance of women with families and children (Kolobaeva, 1995).<br />

In essence, the value and contribution of Kazakhstani women in the workplace was<br />

invisible.<br />

A recent international conference on women's issues identified the invisibility of Kazakh<br />

women as an archenemy of the women's movement. This is true not simply because<br />

women have long been invisible to men, but because in such societies women become<br />

invisible to themselves. The prevailing stereotypes about women were described as<br />

follows:<br />

"If a woman is successful in a career, then people think that everything is not good in her<br />

private life. A woman in politics is rare, in arts she is marginal, in science she is<br />

industrious but not creative. A woman in the East is a special phenomenon. She combines<br />

European independence and Asian domestication. She is part tiger, part snake"<br />

(Chittister, 1995. p.31).<br />

An Empirical Probe of Factors Driving the Movement<br />

Toward Female Entrepreneurship in Kazakhstan


Given the tremendous social and political upheaval occurring in Kazakhstan, there are<br />

many questions about how women, especially women entrepreneurs, are coping. Are they<br />

becoming more invisible? Are they able to implement entrepreneurial ventures? What are<br />

their motivations? What problems and difficulties are they encountering? To address such<br />

questions, a comparative survey of motivations and problems of female entrepreneurship<br />

was developed. The survey was written in Russian (since Russian is spoken by the<br />

majority of the population) and administered to 100 respondents in Kazakhstan in the Fall<br />

1997, during a women's convention held in Almaty, the country capital. Respondents<br />

were asked to give their perceptions on 82 variables, addressing the following issues: (A)<br />

The current situation and trends in female entrepreneurship in Kazakhstan; (B) Individual<br />

motivation towards entrepreneurship; and (C) problems and difficulties experienced in<br />

the entrepreneurial process. When answering questions about motivation, problems and<br />

difficulties of the entrepreneurial process, respondents were asked to differentiate<br />

between these issues as faced by women versus men. Questions were written using a 7-<br />

point Likert scale. Demographic data was also collected. Descriptive data was analyzed<br />

using the SPSS statistical package.<br />

Respondents' Profile<br />

In order to gain insights into the rarely articulated perceptions of women regarding<br />

entrepreneurship in Kazakhstan, more than 90% of respondents were female. The<br />

majority (70%) of respondents were in their 20s and 30s (please refer to Table 1). More<br />

than 80% of them have significant educational accomplishments, which include some<br />

college education, college, or a master's degree. Only 18% of respondents had greater<br />

than 5 years of entrepreneurial experience -- an expected characteristic in Kazakhstan's<br />

emerging market economy, where independent business ventures have only been legal<br />

since the early 1990s. Most respondents indicated their job/business affiliation was with<br />

small organizations. In fact, 13% of respondents were the only employees on the payroll.<br />

More than 50% of respondents indicated that their organizations employed fewer than 10<br />

people. Entrepreneurial ventures in Kazakhstan are a relatively new phenomenon, a fact<br />

reflected in the extremely low sales volumes reported: 18% of respondents earned less<br />

than $5,000 a year in annual sales, 42% earned between $5,000 and $100,000; 1% earned<br />

between $5 million and $10 million, and only 1% reported their sales as exceeding $10<br />

million a year.<br />

Age, full years<br />

Under 20<br />

21-30<br />

31-40<br />

41-50<br />

51-60<br />

Table 1<br />

Respondents' Profile<br />

Personal data Responses, %<br />

1<br />

28<br />

42<br />

18<br />

11


Gender<br />

Male<br />

Female<br />

Marital Status<br />

Married<br />

Single<br />

Single with children<br />

Other<br />

Educational Accomplishments<br />

High school<br />

Community college<br />

Some college<br />

College degree<br />

Master's degree<br />

Experience in Entrepreneurship, years<br />

Less that 1 year<br />

1-2<br />

3-5<br />

More than 5<br />

Missing cases<br />

Number of Employees in Respondent's<br />

Organization<br />

None, except for the respondent him/herself<br />

1 other employee<br />

2-5<br />

6-10<br />

11-50<br />

51-100<br />

More than 100<br />

Missing cases<br />

8<br />

92<br />

58<br />

26<br />

13<br />

3<br />

2<br />

2<br />

9<br />

80<br />

7<br />

22<br />

19<br />

26<br />

18<br />

15<br />

13<br />

27<br />

15<br />

11<br />

8<br />

1<br />

1<br />

24


Table 1 Cont.<br />

Annual Sales, $US, thousand<br />

less than 5 thousand<br />

5-20<br />

21-50<br />

51-100<br />

101-500<br />

501-5,000<br />

5,001-10,000<br />

More than 10,000<br />

Missing cases<br />

Increasing Acceptance of Female Entrepreneurship<br />

The majority of respondents felt that female entrepreneurship should be among the most<br />

important national priorities (Please refer to Table 2) deserving greater attention on the<br />

part of the mass media, social groups, other public institutions, as well as the government<br />

of Kazakhstan.<br />

18<br />

16<br />

11<br />

15<br />

6<br />

0<br />

1<br />

1<br />

31<br />

Table 2<br />

Current Situation and Trends in Female Entrepreneurship<br />

Female entrepreneurship should be<br />

considered among the most important<br />

priorities in Kazakhstan's socio-economic<br />

development<br />

Female entrepreneurship deserves greater<br />

attention on the part of mass media, social<br />

movements, and other public institutions of<br />

Kazakhstan<br />

Female entrepreneurship deserves greater<br />

attention on the part of the government of<br />

Kazakhstan<br />

The degree of participation of women in<br />

Kazakhstan in entrepreneurship should be<br />

greater<br />

Current degree of participation in<br />

entrepreneurship among women in<br />

Kazakhstan is greater compared to other NIS<br />

countries<br />

% of "Agree" and<br />

"Totally agree"<br />

Responses<br />

% of "Disagree""<br />

and "Totally<br />

disagree" Responses<br />

75.7 3<br />

65.7 3<br />

81.8 4<br />

69.1 2.2<br />

26.1 32.3


Table 2 Cont.<br />

Current degree of participation in entrepreneurship among women in<br />

Kazakhstan is greater compared to other Central Asian countries<br />

In Kazakhstan, women, compared to men, are less effective as entrepreneurs<br />

and managers<br />

In Kazakhstan, men, compared to women, are less effective as entrepreneurs<br />

and managers<br />

In Kazakhstan, the religious norms and traditions are the obstacle for<br />

entrepreneurship<br />

In Kazakhstan, the ethnic, public, and family norms and traditions are obstacles<br />

for entrepreneurship<br />

45.3 16.8<br />

30.6 39.8<br />

20.6 30.5<br />

19.4 53.8<br />

23.7 46.2<br />

Sixty-nine percent of respondents suggest that the degree of participation in<br />

entrepreneurship among women of Kazakhstan should be greater. Approximately equal<br />

amount of respondents expressed either their strong agreement (30.6%) or disagreement<br />

(39.8%) that women, compared to men, are less effective as entrepreneurs and managers.<br />

The opposite statement that men, compared to women, are less effective as entrepreneurs<br />

and managers was agreed with by 19.4% and disagreed with by 30.5% of respondents.<br />

Religious norms and traditions are considered obstacles to entrepreneurship by 19.8% of<br />

respondents, although 53.8% disagreed with this statement. Similar views were held<br />

regarding ethnic, public, and family norms and traditions as obstacles to entrepreneurship<br />

in Kazakhstan, with 23.3% agreeing and 46.2% disagreeing.<br />

Motivations toward Entrepreneurship<br />

We asked our respondents to what extent certain factors motivate men and women in<br />

Kazakhstan to engage in entrepreneurial activities. Among twenty four motivations, five<br />

were considered most important for female entrepreneurs in Kazakhstan (descending<br />

order): (1) need for material support of their children, (2) desire to be more independent<br />

and free, (3) need for material support of their parents, (4) need for interesting work, and<br />

(5) need to control their own time and work For male entrepreneurs, the top five<br />

motivations included: (1) desire to make money, become wealthy and obtain security, (2)<br />

desire to be more independent and free, (3) need for self-actualization, (4) desire to be<br />

their own boss, and (5) desire for greater recognition, social status and prestige. These<br />

findings suggest that women are motivated primarily by the family's financial needs, or<br />

by individual needs to establish some financial independence. In contrast, respondents<br />

perceive that male entrepreneurs are motivated by the desire for wealth, entrepreneurial<br />

achievement, recognition and prestige.<br />

Respondents felt that neither men nor women are strongly motivated to become<br />

entrepreneurs because of issues related to previous corporate employment, or in order to<br />

continue a line of family business traditions. The welfare of the community at large was<br />

also rated very low as a motivator for entrepreneurship, with issues such as the welfare of<br />

the community falling to the bottom of the list of motivators. Respondents indicated that<br />

both men and women chose to become entrepreneurs to satisfy personal aspirations.


Problems and Difficulties in Entrepreneurship Similar for Males and Females<br />

Those with experience in running a business know that problems and difficulties are<br />

plentiful, while achievements are few. In this regard, our research did not attempt to find<br />

solutions to Kazakhstani entrenreneurs' problems. Rather we were interested to see how<br />

male and female entrepreneurs might differ in perceiving and prioritizing these problems<br />

and difficulties. Respondents were in general agreement that problems encountered by<br />

both men and women were similar. According to our respondents, the most significant<br />

problems faced by both male and female entrepreneurs include (descending order): (1)<br />

difficulties in obtaining start-up capital, (2) high business taxes, (3) government<br />

regulations and red tape, (4) unreliability of suppliers, and (5) unreliability of business<br />

partners. While numbers (1) through (3) are common problems faced by entrepreneurs in<br />

many countries of the world, (4) and (5) are caused by Kazakhstan's very unstable and<br />

volatile business environment, which forces entrepreneurs and others in business to<br />

exercise erratic, short term strategies which Max Weber a while ago qualified as "booty<br />

capitalism."<br />

Table 4<br />

Problems and Difficulties Associated with Entrepreneurship **<br />

Finding information on registration, legal and<br />

other start up requirements<br />

Acquiring knowledge and practical skills<br />

necessary to start up business<br />

Acquiring initial capital to start up business<br />

Finding space for office and production<br />

facilities<br />

Setting up communications (telephone, fax, etc.)<br />

Crime against business and entrepreneurs<br />

Bribery, unethical relations and actions<br />

Unreliability of business partners<br />

Unreliability of suppliers<br />

Finding good employees<br />

Conducting banking and financial transactions<br />

Finding information about markets, products<br />

and prices<br />

High taxes<br />

Government regulations and red tape<br />

High interest rates<br />

for Females for Males<br />

% of<br />

"Serious"<br />

and "Very<br />

serious<br />

problem"<br />

Responses*<br />

38.9<br />

38.0<br />

79.2<br />

48.6<br />

40.3<br />

65.8<br />

65.3<br />

67.1<br />

68.7<br />

45.1<br />

29.0<br />

29.2<br />

70.0<br />

69.0<br />

58.6<br />

34.8<br />

45.7<br />

29.0<br />

31.9<br />

Rank<br />

18<br />

19t<br />

1<br />

14<br />

17<br />

6<br />

7<br />

5<br />

4<br />

16<br />

27t<br />

26<br />

2<br />

3<br />

11<br />

22<br />

15<br />

27t<br />

24t<br />

% of<br />

"Serious"<br />

and "Very<br />

serious<br />

problem"<br />

Respones*<br />

42.0<br />

36.3<br />

71.6<br />

38.3<br />

30.9<br />

37.5<br />

56.6<br />

59.7<br />

62.1<br />

38.7<br />

31.9<br />

36.5<br />

68.5<br />

68.5<br />

58.3<br />

42.0<br />

38.6<br />

27.5<br />

33.3<br />

Rank<br />

11t<br />

22<br />

1<br />

18<br />

28t<br />

20<br />

7<br />

5<br />

4<br />

16<br />

27<br />

21<br />

2t<br />

2t<br />

6<br />

11t<br />

17<br />

31<br />

25


Table 4 Cont.<br />

Sales and marketing<br />

New product /service development<br />

Day-to-day company management<br />

Human resource management<br />

Accounting<br />

Environmental protection<br />

Discrimination and harassment at work<br />

(sexual, ethnic, religion, etc.)<br />

Unfair competition<br />

General management<br />

Transportation<br />

<strong>Business</strong> takes too much time and energy from<br />

personal life<br />

<strong>Business</strong> takes too much time from family<br />

involvement<br />

Male domination in business<br />

Insufficient education<br />

Family responsibilities (household, children,<br />

etc.)<br />

An excessive reliance on power, authoritarian<br />

style in management<br />

33.3<br />

31.9<br />

52.2<br />

38.0<br />

26.5<br />

29.0<br />

64.3<br />

57.1<br />

60.0<br />

37.5<br />

63.0<br />

27.9<br />

23<br />

24t<br />

13<br />

19t<br />

31<br />

27t<br />

8<br />

12<br />

10<br />

21<br />

9<br />

30<br />

*On a 7-point scale from 1 "No problem at all" to 7 "Very serious problem."<br />

**Five most important motivations are marked in bold<br />

Conclusions<br />

42.0<br />

37.7<br />

30.9<br />

47.9<br />

35.8<br />

32.8<br />

42.0<br />

48.6<br />

43.9<br />

40.8<br />

36.2<br />

30.9<br />

Over the centuries, Kazakhstan essentially had neither a market economy nor any<br />

meaningful tradition of female entrepreneurship. Under the current market transition,<br />

only a few economic sectors, mostly comprised of large enterprises, have begun to turn<br />

around. As a result, women are faced with their families' needs for economic survival. In<br />

addition, women are inspired by a strong international (particularly American) cultural<br />

influence. This situation has motivated a growing number of women to become<br />

entrepreneurs, despite the traditional family role of women in Kazakhstan and the lack of<br />

entrepreneurial role models.<br />

While entrepreneurship has become a viable option for women in Kazakhstan, a number<br />

of economic and cultural factors still restrain women in their entrepreneurial<br />

undertakings. More than two-thirds of survey respondents believed that female<br />

entrepreneurship should be considered an important priority in the country's economic<br />

development by the Kazakhstani government, mass media, social movements, and other<br />

public institutions.<br />

11t<br />

19<br />

28t<br />

9<br />

24<br />

26<br />

11t<br />

8<br />

10<br />

15<br />

23<br />

28t


In comparing the effectiveness of women versus men, the respondents were split, with up<br />

to one third of respondents expressing diametrically different views. On the macro level,<br />

most respondents felt that religious, ethnic, public, and family norms/traditions do not<br />

represent obstacles for female entrepreneurship.<br />

When evaluating motivations for becoming entrepreneurs, the least important motivators<br />

were agreed upon as they applied to men and women. However, the most significant<br />

motivators were perceived as different for men than for women. Females were motivated<br />

primarily by financial autonomy and providing for the family's economic needs. In<br />

contrast, men were motivated by wealth, recognition and success.<br />

As far as entrepreneurial problems and difficulties are concerned, the survey did not<br />

identify any meaningful distinctions between the two genders. Both females and males<br />

encounter any problems typically faced by entrepreneurs in other countries of the world.<br />

These difficulties are associated with such barriers as start-up funding, burden of taxation<br />

and regulations. Specifically related to difficulties of Kazakhstan's transitional business<br />

environment, unreliability of suppliers and partners in business transactions were<br />

mentioned most often.<br />

This study is one of few research attempts to address the issue of female entrepreneurship<br />

in Kazakhstan. As a preliminary study, it has several limitations: small sample size,<br />

skewed sampling procedure, geographic constraints, and others. It does not cover some<br />

very important issues of female entrepreneurship in an emerging economy, such as the<br />

efficiency of women in their business venture start- ups and at stable stages, etc.<br />

However, this research illuminates a dynamic area of entrepreneurship -- the emergence<br />

of female entrepreneurship in a country that has no tradition of individual achievement,<br />

especially for women.<br />

Future Research Suggestions for Kazakhstan<br />

Entrepreneurship<br />

There are a number of implications in this research. Gender differences were evident in<br />

the motivations of male versus female entrepreneurs. This finding is interesting in that<br />

since 90% of the respondents were female, these differences indicate that women<br />

perceive men to be motivated differently. Whether men are in fact motivated more by the<br />

desire for wealth and prestige than by the need for economical survival is an interesting<br />

question worthy of future research.<br />

A key issue for future researchers is to address the applicability of overseas experiences<br />

(U.S., European, and Asian) with female entrepreneurship in the Kazakhstani socioeconomic<br />

and cultural conditions. The current research affirms the views of Thomas and<br />

Mueller (1998) that cultural context plays a role in the understanding of entrepreneurship.<br />

The participation of American and European academia and government support in<br />

research to identify these differences, and to assist in the training and development of<br />

Kazakhstani entrepreneurs is greatly needed.


Continuation of economic reforms and privatization, foreign investment in mining and<br />

manufacturing industries and a growing domestic consumer demand eventually will<br />

create a broader base for small business and entrepreneurship, including opportunities for<br />

women. Further research on women's involvement in small business and entrepreneurship<br />

is needed to determine what is required to make them more successful. This additional<br />

research should be structured to facilitate development and implementation of training for<br />

the female Kazakhstani entrepreneur in the new millenium.<br />

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(1) Research for this project was supported by grant International Research and Exchange<br />

Board, with funds provided by the Department of State (Title VIII), the <strong>National</strong><br />

Endowment for the Humanities. None of these organzations is responsible for the views<br />

expressed.<br />

(2) The English transliteration often comes in two ways: Kazakh and Kazak.<br />

(3) High share of female employment in these industries is more or lees typical for many<br />

of the former Soviet republics.

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