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The article is devoted to the development of small and medium-sized enterprises (SMEs) in Kazakhstan which is recognized worldwide as an effective lever for economic growth of the country. It examines the current status and scope of activity of this business in Kazakhstan, as well as the possibility of its development in the future. It was found that the level of SMEs development in the low country, and the current structure of employment of its subjects are far from perfect. The causes of structural deformation of SMEs in business which is related to its lack of development in the industrial sector; the lack of its subjects in the manufacture of certain sectors define the intensive development of the economy. On the example of developed countries, where SMEs take the largest share in the production of the gross domestic product, the substantiation of the possibility of transformation of the business into a major sector of the economy in terms of its development on an innovative basis. Particular attention is paid to the SMEs creation around new innovative enterprises using the outsourcing system, franchising, and other business cooperation. At the same time recommendations on the use of the state to support mechanism to accelerate the growth of SMEs in the industrial sector and fully implement its technical industrial and socio-economic potential.

Regional development of small and midsize businesses in the conditions of forming of innovative economy of Kazakhstan: a case study