Factors of development and obstacles to growth of small and medium-sized businesses in Naryn oblast of Kyrgyzstan

Naryn oblast of the Kyrgyz Republic is rich with a variety of natural resources, such as mountain pastures, water and forest resources creating the potential for opening and development of micro, small and medium-sized enterprises (MSME). Nature, ecosystem, highland pastures, climate and fertile soils are highly suitable for bee-farming, mountain tourism, herbs collection and livestock breeding. Although these sectors are active, there has been no significant development across them, and region’s share of economy has been rather small. To study MSME a sample survey of enterprises in Naryn and At-Bashi districts and Naryn city was carried out. A total of 96 MSME were surveyed using a combination of qualitative and quantitative methods. Authors identified key development issues of MSME in these sectors and presented conclusions and recommendations that could be useful for the MSME sector development in Naryn oblast as well as in other mountain regions of Kyrgyzstan.