Startup companies are a crucial part of boosting the Tajik economy. However, according to the report “Tajikistan: startups are needed, but conditions are lacking” by the Central Asian Bureau for Analytical Reporting, there are a multitude of obstacles for startup companies, including poor internet connection speeds, heavy taxes and complex legislation.
What is a Startup?
- A startup company is a company founded by new entrepreneurs with the intention of developing a unique and innovative product or service.
- The goal is to expand upon existing products or services or to create something entirely new.
- Startups’ aim is to create a completely new framework, whereas regular companies duplicate what’s been done before.
- They are incredibly beneficial to countries’ economies.
- Most of the startups that exist in Tajikistan were created outside of the country, in places like Uzbekistan for example.
- In Tajikistan, dozens of startups have been pushed to bankruptcy by government practices including excessive inspections, bribery, and extortion. Due to these hindrances, many startup founders either moved their companies abroad or sold them.
- Additionally, the Tajik economy is in a poor state, there is a shortage of personnel, and there is a presence of strong monopolism which all hinder the ability for startups to properly develop.
- Startups are essential in a digital economy and Tajikistan is making slow, but steady progress toward the development of startups. However, government assistance is crucial for business development.
- The creation of tax breaks on all expenses, fostering a safe ecosystem for investing in Tajikistan, and added benefits for banks that allocate funds to startups can really make it easier for these companies to develop.
- In addition, opening IT parks would be a major boost for emerging startups.
- International organizations are also really helpful in the development of startups in the country by providing financial support to young entrepreneurs. These include the United Nations Development Program in Tajikistan, Peak Tajikistan, Startup Go, Accelerate Prosperity and others.
What does Tajikistan need?
- Startups in the field of education technology, health education technology, and healthcare technology startups are particularly important for Tajikistan. Launching such startups can solve many issues, including the drain of medical personnel.
- Tajik citizens also now need startups for medicine delivery and animation schools for computer game and film enthusiasts.
- If an IT specialist creates at least one startup with revenues of about $980,000, it can give momentum to the startup industry.