Abstract
This paper explores the key factors affecting the development of small and medium enterprises (SMEs) in emerging economies, specifically focusing on Kazakhstan.The primary goal is to identify key facets of the institutional environment that positively affect the development of SMEs and to assess the challenges and opportunities faced by these businesses in the Kazakhstani context.The study uses a mixed-methods approach that combines quantitative data analysis from national economic reports with qualitative insights gathered through interviews with SME owners and stakeholders.The results indicate that while SMEs in Kazakhstan contribute significantly to economic development, they encounter barriers such as limited access to finance, regulatory hurdles, and market competition.However, the findings also highlight emerging opportunities in digital transformation and government support initiatives to foster entrepreneurship.This research contributes to the understanding of SME growth in emerging markets and offers policy recommendations to enhance the sustainability and competitiveness of SMEs in Kazakhstan.