The article discusses the current state of small and medium-sized businesses in the country, analyzes the problems hindering its development, presents the author's vision of their solution. The authors explore the sources of financial support for the development of entrepreneurship, the problems of their insufficiency, lack of incentives for implementation. Based on the analysis of business activities in Kazakhstan in recent years, conclusions and recommendations have been formulated for improving the economic instruments for regulating entrepreneurship in Kazakhstan, and a forecast has been given for the further development of SMEs. The policy of industrialinnovative development of the economy does not give the desired result, the innovative component of the products produced still remains at a very low level, the competitiveness of the products produced is at a low level also.