An Exploratory Study of Factors That Promote and Hinder Development of Small and Medium Sized Enterprises in Kazakhstan

Entrepreneurship is a key element of the economy, determining the prospects for economic and industrial growth of the state and social stability in society. As demonstrated by the successful experience of developed countries, small and medium-sized enterprises contribute to the growth of competitiveness and diversification of the economy. Many factors affect SME development, negative factors (competition, low paying capacity of population, devaluation of national currency, high taxes, etc.) and positive ones (including personal qualities, location of the company, reduction of administrative barriers). The main aim of this paper is to identify the most influential factors of Kazakhstan's SMEs development and to make recommendations for reduction of the effect of negative factors and strengthening of the factors encouraging the development of the SMEs.