Growth Factors of the Selected Kyrgyz Small and Medium Enterprises

Abstract

This study attempts to determine significant factors that affect the growth rate of the Kyrgyz small and medium sized enterprises. As an empirical basis, this study used data from a survey on the relationship of the business environment and the enterprise performance (BEEPS), conducted by the European Bank for Reconstruction and Development and the World Bank in 2005 and 2007. Based on the analysis of 71 Kyrgyz firms it tried to identify factors, which have a significant effect on the rate of growth in sales using multiple regression models, fixed and random effect model. Further, it examines a set of variables: firm size, age of firms, skilled workers, permanent full time employees and export policy that may have an impact on the growth of firms. In the estimation of the results, the coefficient of firm age and export factors are significant variables to affect the performance of small and medium enterprises.