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Financing of young knowledge-based companies after the financial crisis: the case of Kazakhstan

Author

Listed:
  • Gulzhan Isatayeva

    (South Kazakhstan State Pedagogical Institute, Kazakhstan)

  • Velena Seitova

    (Turan University, Kazakhstan)

  • Gulzhamal Koptayeva

    (Miras University, Kazakhstan)

  • Altynai Turlybekova

    (Regional Social and Innovation University, Kazakhstan)

  • Aigul Mutaliyeva

    (International Humanitarian and Technical University, Kazakhstan)

Abstract

Following the financial crisis of 2008, more attention is paid to access to finance for young knowledge-based firms. A study conducted before the crisis showed that it was more difficult for knowledge-based firms to gain access to finance. However, none of the studies considered the differential effect of the crisis on young knowledge-based firms. This document examines this gap using the data set of 1155 firms in Kazakhstan for various sectors of the economy. The analysis was carried out in the context of the years before the crisis of 2002-2005 and after the crisis, when the economy significantly stabilized for 2014-2017. We believe that young knowledge-based firms are more likely to be rejected for financing than other firms, and this has significantly worsened in the post-crisis period. However, regressions that control a variety of characteristic characteristics show that the deterioration in the general conditions for financing. The results show that there are two questions in the financial system. The first is a structural problem that restricts access to finance for young knowledge-based firms. Secondly, the cyclical problem was caused by the financial crisis and significantly affected the young knowledge-based firms of various sectors of the economy.

Suggested Citation

  • Gulzhan Isatayeva & Velena Seitova & Gulzhamal Koptayeva & Altynai Turlybekova & Aigul Mutaliyeva, 2019. "Financing of young knowledge-based companies after the financial crisis: the case of Kazakhstan," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(3), pages 1226-1234, March.
    • Handle: RePEc:ssi:jouesi:v:6:y:2019:i:3:p:1226-1234
    DOI: 10.9770/jesi.2019.6.3(12)
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    References listed on IDEAS

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    Cited by:

    1. Valdonė Indrašienė & Violeta Jegelevičienė & Odeta Merfeldaitė & Daiva Penkauskienė & Jolanta Pivorienė & Asta Railienė & Justinas Sadauskas & Natalija Valavičienė, 2021. "Linking Critical Thinking and Knowledge Management: A Conceptual Analysis," Sustainability, MDPI, vol. 13(3), pages 1-17, February.
    2. Sardo, Filipe & Serrasqueiro, Zélia & Armada, Manuel Rocha, 2022. "The importance of owner loans for rebalancing the capital structure of small knowledge-intensive service firms," Research in International Business and Finance, Elsevier, vol. 61(C).

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    More about this item

    Keywords

    knowledge-based economy; financial instruments; financing knowledge; Kazakhstan;
    All these keywords.

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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