• Decrease the budget deficit

• Increase efficiency of national economy

There were four stages in the privatization and denationalization processes in the RK. The first stage was in 1991-1992. There were done conditions and programmes of the implementation of the process.

The second period of the privatization was in 1993-1995. There was realized the National programme of the privatization and denationalization. According to this programme the number of private enterprises were increased, joint-stock companies were appeared. The aim of this period was to develop small, medium business in Kasakhstan.

The third period of the process was in 1996-1998. There was accepted a new programme of privatization. According to the new programme the rest of government enterprises were sold. The last period of the process was held in 1999-2000. There were improved normative acts are regulating the privatization process in our country.

The result of privation process in Kasakhstan were 34,5 thousand government enterprises were sold between 1991 -2000 years. Among them 6,2 thousand enterprises were sold by Russian rouble and 28 thousand were sold by tenge. Total amount of sum from privatization processes were 215,4 billion tenge.

The term an entrepreneurship was introduced by English economist R.Cantilion at the beginning of VIII century. He described the entrepreneur as a person who wants to organize production to get profit based on risk.

Later in 1876, A. Smith wrote in his work “Researches on the nature and reasons of people wealth” that the entrepreneur is an owner who wants to get profit and realize his commercial ideas. J. Say was a famous economist said that the entrepreneur is an agent who combine production factors in order to provide effective business. According to J.Say the income of the entrepreneur is a benefit comes from the orgaisation of the production process and sale of goods.

I. Shumpeter described the entrepreneur is an innovative person who opens the new ways of production, selling of goods and services.

The entrepreneurship is a type of activity where individuals and corporations in despite of property forms satisfy the needs of the buyers in order to get a profit.

The entrepreneurship performs the following functions: