Formal and Informal Institutions in Kazakhstan: A Qualitative Study of Entrepreneurs' Perspectives

Abstract

This qualitative research paper explores the interplay of formal and informal institutions in shaping the entrepreneurial landscape of Kazakhstan. Through in-depth interviews with entrepreneurs from diverse sectors, the study uncovers the nuanced impact of both types of institutions on entrepreneurship. It finds that while formal institutions, including state support programs, tax policies, and digitalization initiatives, play a significant role in facilitating business endeavors, informal institutions, such as familial and social support networks, are equally critical. These informal structures often complement and enhance the effectiveness of formal institutions, contributing to the overall entrepreneurial environment in Kazakhstan. The study highlights the bidirectional relationship between entrepreneurs and institutions, emphasizing the need for a comprehensive understanding of this dynamic for effective policy development and support programs. This research adds valuable insights to the field of entrepreneurship studies, shedding light on the complex relationship between formal and informal institutions in a developing economy.