“Everyone should strive for their dream and do everything possible to achieve it.”

Maksat Kydyrzhan uulu, an emerging entrepreneur in rural Kyrgyzstan, is living these words every day.

From watching production workshops to starting a small pop-up cafe with his wife, Maksat became inspired to start a business of his own. After attending training sessions and receiving a small grant supported by the World Bank’s International Development Association (IDA), his dreams became more achievable. These efforts eventually led to the creation of Min-Bulak village’s own small dumpling business.

Poverty in Rural Kyrgyzstan

Employment in rural Kyrgyzstan relies heavily on agriculture. According to World Bank data based on ILO estimates, agriculture accounted for 16% of total employment in 2024. Much of the country’s agricultural production comes from small household farms, and limited modernization has contributed to ongoing food insecurity, particularly in rural communities.

A large portion of the poorest households do not have access to enough food. This insufficiency can reduce people’s energy and ability to work. Additionally, Kyrgyzstan has relatively few major exports and has not fully developed resources such as coal and gold, limiting opportunities for economic growth.

Many people, particularly in rural communities, also have difficulty accessing bank loans, credit assessments and other financial services. These barriers make it much harder for entrepreneurs to start or expand businesses.

Although poverty has decreased in recent years, falling from 29.8% in 2023 to 25.7% in 2024, this economic growth has not benefited everyone equally. Lower-income households experienced less consumption growth than middle- and higher-income households.

Additionally, gender inequalities still persist in Kyrgyzstan. Boys and girls generally have similar access to services and developmental outcomes in early childhood, but gender norms become much more restrictive as children grow older.

About 12% of women aged 20-49 were married before age 18, with higher rates among marginalized communities. Social expectations also force women to take on more household responsibilities rather than encourage them to seek employment in other sectors.

Addressing the Challenges

Job creation is an important pathway out of poverty. The private sector is an important driver of job creation, particularly through small and medium-sized businesses. However, entrepreneurs in poorer countries often struggle to access the financing needed to start or expand businesses.

The World Bank’s International Development Association (IDA) supports efforts to reduce investment risks and broaden financing opportunities. An IDA-supported project in Kyrgyzstan has helped expand access to finance for more than 100,000 people and businesses.

These efforts are particularly important for small businesses, which can create jobs and income opportunities within their own communities and support rural employment in Kyrgyzstan.

Supporting entrepreneurs can also help women enter the workforce and become business owners, addressing many of the gender-related employment barriers.

Economic development can also benefit countries beyond Kyrgyzstan. As individuals earn more income and local economies grow, countries can become stronger trading partners and create new markets for goods and services.

Maksat’s Impact

Maksat’s small dumpling business created four local jobs, including three positions for women in Min-Bulak, giving them an opportunity to earn income while staying close to home and their families. His business is one example of how small-scale entrepreneurship can support rural employment in Kyrgyzstan.

By selling dumplings in Min-Bulak, nearby villages and Talas, Maksat not only provides a stable source of income for his family but also contributes to the local economy. He is also planning to expand his business beyond dumplings, introducing “meatballs, cutlets, and other semi-finished products,” which could create even more jobs.

Next Steps

Maksat’s story shows how a relatively small investment in one entrepreneur can create opportunities far beyond one person. His business has already created local jobs, provided women with employment and brought new economic activity to his community.

Continuing to support entrepreneurs like Maksat will be important for expanding these opportunities across rural Kyrgyzstan. The IDA Private Sector Window has global job-creation and lending targets, but these are not forecasts for Kyrgyzstan.

With continued access to financing, training, and resources, more entrepreneurs can turn small ideas into sustainable businesses. Maksat’s dumpling workshop is proof that when entrepreneurs are given the opportunity to dream, their success can help strengthen local economies and allow entire communities to grow.

– Diya Rajkumar

Diya is based in Redmond, Washington, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Wikimedia Commons