THE STATE AND DEVELOPMENT CHALLENGES OF SMALL AND MEDIUMSIZED BUSINESSES IN THE REPUBLIC OF KAZAKHSTAN

Abstract

Abstract

The article aims to identify the key factors driving the development of small and medium-sized enterprises (SMEs) and to provide an in-depth examination of current trends and challenges in entrepreneurship. Comparing SME development factors in Kazakhstan with the experience of developed countries highlights the importance of the conditions and mechanisms that influence entrepreneurial activity. A comparative, quantitative analysis of the business environment and the factors determining enterprise success focuses on both the specific characteristics of the Kazakhstani market and international best practices. This approach deepens understanding of Kazakhstan's entrepreneurial climate and provides a strong basis for developing strategies to support and stimulate entrepreneurship. The study examines the current state and development prospects of SMEs, which are increasingly important to the economic development of many countries, and identifies effective international practices that can contribute to Kazakhstan’s economic development. The methodological framework is based on general scientific research methods, including comparative, logical, and statistical analysis. These methods were used to assess the current state of SMEs and to identify the major challenges and development prospects of the SME sector in Kazakhstan. The empirical analysis draws on information sources related to SME development, data from analytical centers, social survey results, and indicators from national reports addressing the entrepreneurial sector. The study used information on international practices for comparative analysis. The study used pairwise regression analysis to quantitatively assess the relationships among the variables under study. The research findings are presented as conclusions regarding the current state and development prospects of SMEs in Kazakhstan. The study identifies effective practices from other countries that could be adapted to national conditions and formulates recommendations to enhance SMEs' contribution to the country’s economic development.