Economic Impact and Employment
The role of the small and medium-sized enterprise sector in the country's economy has significantly increased. According to preliminary estimates, the gross added value created by SMEs reached 664.6 billion soms in 2024, which corresponds to 43.6% of the total GDP. For comparison, the average share from 2020 to 2024 was around 40%, indicating a noticeable strengthening of the influence of SMEs on the economy.The SME sector provides jobs for tens of thousands of citizens. In 2024, the number of people employed in small and medium-sized enterprises amounted to 114,400, which is 4.2% of the total working-age population. Although the share of SMEs in total employment is not very large, it is gradually increasing. The average monthly salary in this sector has also significantly increased — to 31,535 soms in 2024, which is 2.4 times higher than the level in 2020. However, salaries in small businesses remain below the national average (36,047 soms). In some regions, such as Bishkek and the Talas region, salaries in SMEs exceed the average level: in Bishkek — 35,969 soms, in the Talas region — 35,779 soms.
Regional Differences
The development of small and medium-sized businesses in the regions is uneven. The majority of entrepreneurial activity is concentrated in Bishkek, which has better conditions for doing business. The capital accounts for 63% of the total revenue of SMEs in the country, indicating a high concentration of business and financial resources.Successes in Industry and Construction
Small and medium-sized enterprises have significantly increased their presence in industry. In 2024, the volume of industrial production created by SMEs reached 156.9 billion soms, which is 26.2% of the total industrial output of the country. In 2020, this figure was only 17.8%. Thus, the share of SMEs in industry increased from one-sixth to one-fourth of the total output.Statistical data indicates that small and medium-sized enterprises have significantly strengthened their positions in the production of a number of goods. From 2020 to 2024, their share in the total national production increased in the following categories:
- Flour from cereals: from 46.6% to 62.8%;
- Vegetable oil: from 4.6% to 26.0%;
- Plastic window and door blocks: from 14.5% to 17.4%;
- Furniture: from 30.4% to 52.8%.
In construction, small and medium-sized businesses also play an important role. The volume of contracted work performed by SMEs in 2024 amounted to 185.3 billion soms, which is 24.8% more than in 2023 and twice as much compared to 2020. The main growth came from medium and organized private companies: the volume of contracted work by medium enterprises increased by 3.8 times, small enterprises by 2.6 times, and individual entrepreneurs by 1.6 times. In some economic centers, such as Bishkek and Jalal-Abad, a significant share of construction work is performed by large contractors, while in other regions, almost all construction contracts are awarded to SMEs.
Trade and Services Market
The small and medium-sized business sector is traditionally strong in trade. In 2024, the total turnover of wholesale and retail trade (including the sale and repair of cars) reached 1,259.6 billion soms, an increase of 9.1% compared to 2023. SMEs account for 70.8% of the total trade turnover in the country, indicating the dominance of small firms in the trade sector. The contribution of large companies to trade is significantly lower. Among SMEs, small enterprises contribute the most to the total trade turnover — 33.2%, individual entrepreneurs account for 31.9%, while medium firms make up only 5.8%.The hotel and restaurant business also significantly relies on small enterprises. In 2024, the volume of hotel and restaurant services provided amounted to 48.1 billion soms, of which more than two-thirds (66.6%) of the revenue came from individual entrepreneurs. The share of medium enterprises in this sector was only 8.6%, while small enterprises accounted for 6.1%, further emphasizing the dominance of small businesses in the food service sector.
Small entrepreneurs also play a key role in transportation services. In 2024, they transported 27.7 million tons of cargo, which is 24.2% more than in 2020, although the annual growth was only 5%. The majority of road freight (60% of all cargo) is provided by individual carriers, including private drivers and small logistics companies. Almost every truck on the roads belongs to small businesses.
The volume of passenger transportation by SMEs in 2024 amounted to 458.0 million passenger trips, which is 19.8% more compared to 2020, although it is slightly lower than the level in 2023. About 68.7% of all passengers in the country were transported by individual entrepreneurs, indicating the dominance of small businesses in passenger transportation.
Even in such specific segments as postal and courier services, small enterprises find their niche. In 2024, the volume of postal and courier delivery services provided by SMEs amounted to 771.3 million soms, which corresponds to 40.9% of the total volume of this market.
Farms as the Foundation of Agriculture
Agriculture in Kyrgyzstan largely depends on small forms of farming — peasant and family farms. In 2024, the gross agricultural output produced by SMEs reached 236.8 billion soms, which is 4.6% higher than the previous year. The main share of agricultural production is occupied by family farms, which account for 59.8% of the total output in the agri-sector.Farmers produce a variety of products, occupying a significant portion of the national volume. Within the farming sector, 58.8% of the products are plants, while 41.2% are livestock. In key agricultural crops, family farms dominate in the country:
- Grain: 91.2% of the total gross harvest;
- Cotton: 93.1%;
- Tobacco: 97.4%;
- Potatoes: 59.0%;
- Vegetables: 58.4%.
- Meat: 51.0% of the total volume (234.8 thousand tons);
- Milk: 50.7% (924.5 thousand tons);
- Wool: 57.6% (7.5 thousand tons);
- Eggs: 28.8% (227.8 million pieces).
Financial Results of Small Business
The economic growth of the SME sector has also reflected in financial indicators. In 2024, revenue from the sale of products and services amounted to 481.4 billion soms, which is almost 40% (39.7%) of the total revenue of enterprises in the real sector. The revenue of small enterprises increased by 127.8 billion soms (35%) over the year and by 346.1 billion soms (3.6 times) compared to 2020. This indicates that over five years, sales in small businesses have significantly increased.The largest volumes of revenue in the SME sector are generated by several industries. Industry accounts for about 28.9% of the total revenue, trade for about 19.7%, and construction for about 18.6%. Together, these three sectors form more than half of all small business income. At the same time, most of the revenue is still concentrated in Bishkek, where 63% of the total income of SMEs is generated.
The financial results of the SME sector in 2024 can be considered successful. Small and medium-sized enterprises achieved a net profit of 91.6 billion soms — the highest figure in the last five years, indicating an increase in profitability. For comparison, in previous years, profits were significantly lower, and during crisis moments, some enterprises operated at a loss.
Some sectors of small business showed particularly high results. For example, net profit in the field of professional, scientific, and technical activities increased by 4.5 times, in financial intermediation by 3.5 times, in construction by 3.1 times, in the hotel and restaurant business by 2.4 times, and in trade by 2.1 times. These significant increases are due to both the low base of the previous year and the growth in demand in 2024.
However, not everyone managed to achieve a positive financial result. In some regions, such as Jalal-Abad, Talas, Naryn, and Issyk-Kul, medium enterprises reported losses. This indicates existing difficulties for businesses, possibly related to local market constraints.
Participation in Foreign Trade
Small and medium-sized entrepreneurs are increasingly participating in Kyrgyzstan's foreign trade. In 2024, the external trade turnover of SMEs amounted to 7,933.6 million dollars. Despite a slight decrease of 5.5% compared to the record year of 2023, this figure has more than tripled compared to 2020.Exports of SME products in 2024 amounted to 1,196.4 million dollars, which is 11.4% less than the previous year, but 2.4 times more than in 2020. The import of goods carried out by SMEs amounted to 6,737.2 million dollars — a decrease of 4.3% over the year, but more than three times higher than the level in 2020. This indicates a significant expansion of the foreign economic activity of small businesses.
The trade balance of SMEs is traditionally negative, as imports significantly exceed exports. In 2024, the negative trade balance amounted to –5,540.8 million dollars; however, it decreased compared to 2023. The share of SMEs in the total external trade turnover of Kyrgyzstan is about 45.0% in 2024, but asymmetrically: in exports, small businesses account for only 23.3%, while in imports — 53.9%. This indicates that small and medium-sized businesses actively import goods but play a relatively modest role in exports, mainly supplying agricultural products and light industry goods.
