Management problems of small and medium sized enterprises in Kyrgyzstan

The SMEs constitute a considerable part of the establishments in Kyrgyzstan, which have gone through hard times in consequence of their transition into the free-market economy after the Country obtained its sovereignty.Having an important place in economies of all the countries of the world, SMEs are supported by their government because of their contributions to economy. However, despite of these developments, some problems arising from domestic or external factors are being encountered. It is possible to say that the main reason of this problem is lack of an effective management. Therefore, the problems associated with management of the SMEs should be solved in the first place.The scope of this study is to detect the problems arising related to management and management function of the SMEs in Kyrgyzstan; and consequently develop a resolution advisory according to the obtained findings.In line with this objective, a study designed within a theoretical frame and based on survey method has been carried out on the SMEs in Bishkek, Osh, Jalalabat and Cholponata, which are the populous cities of the country, to detect the problems in management and management functions of the SMEs in Kyrgyzstan. In the review of the obtained results it is ascertained that adequate planning is not made or made by nonexpert people in the SMEs; managements are weak; professional managers are not employed in a wide part of the establishments; personnel selection is made unconsciously; training of current personnel is not considered important; organizations are simple due to that most of the establishments are family-owned enterprises; orientation function of management is weak or is partially executed; audits are performed by owners. Besides, we?ve come to the conclusion that some problems such as inadequate government promotion, pressure of bureaucracy, high taxes, difficulty in finding financial source due to high rate of credit interests, inadequate demand due to low income level of the people, inability to use modern technology due to financial difficulties prevent the establishments from working efficiently.In conclusion, some solutions have been introduced to eliminate the management problems of the SMEs in Kyrgyzstan. These solutions are providing the owner managers of the SMEs with training on management and management skill; starting new applications for personnel selection, eliminating bureaucratic pressure, providing the SMEs with government promotion, providing well coordination in the policies and programs being conducted by the government, improving the financial system, developing new governmental measurements.Keywords: Kyrgyzstan, Management Problems, Small And Medium Sized Enterprises,