The Role of Governmental Support in Strengthening Venture Capital Ecosystems in Developing Economies: Case of Kazakhstan

Venture capital (VC) is a critical driver of innovation, entrepreneurship, and economic diversification. However, in developing countries, VC ecosystems often face challenges such as insufficient private investment, underdeveloped financial markets, and regulatory constraints. Governments play a crucial role in mitigating these barriers through targeted policies, financial incentives, and institutional frameworks designed to stimulate VC growth. This study adopts a systematic literature review methodology, complemented by semi-structured expert interviews, to analyze governmental support mechanisms in Kazakhstan. The research explores key policy instruments, including co-investment programs, tax incentives, startup accelerators, and regulatory reforms, assessing their effectiveness in fostering VC development. It identifies challenges such as bureaucratic inefficiencies, investor risk aversion, and the lack of mature exit opportunities that hinder the scalability of VC markets. This paper evaluates Kazakhstan's evolving approach to venture capital promotion through a comparative analysis of global best practices.