Аңдатпа
The development of small and medium-sized businesses is the key to the development of the country’s economy. Innovative development of small and medium-sized businesses will not only increase output, and increase the amount of taxes to the budget, but also improve the socio-economic situation within the state. The unemployment rate among the population will decrease, the number of working people will increase, the income level will increase, the standard of living will improve, and the members of the middle class will increase. The purpose of the study in the article is to analyze the dynamics of the development of small and medium–sized businesses in the state, differentiate their innovation activity, and provide mechanisms that improve their efficiency. The study analyzed the main indicators of business entities for 2015-2020. The research base was based on data from the National Bureau of Statistics of the agency for Strategic Planning and reform of the Republic of Kazakhstan. In the course of the research, general methods of Economic Science deduction, induction and logical structuring and grouping, comparison and statistical methods were used. As a result of the study, regulatory, innovative, financial, and infrastructure mechanisms for improving the efficiency of SMEs in the context of innovative development of the economy of the Republic of Kazakhstan were proposed. In the areas of each mechanism, measures were taken to develop innovative small and medium-sized businesses. The research material can be educational material for universities, the basis for business entities, and public administration bodies.