Assessing the Effectiveness of Government Support in Venture Capital Ecosystems: Insights from Kazakhstan

This study examines the effectiveness of government support mechanisms in fostering venture capital (VC) ecosystems in emerging economies, with a particular focus on Kazakhstan. While venture capital is widely recognized as a key driver of innovation, entrepreneurship, and economic diversification, many developing countries face persistent structural barriers, including underdeveloped financial markets, limited private investment, and regulatory inefficiencies. To address these challenges, this research adopts a multi-source qualitative design, combining a systematic literature review with semi-structured interviews conducted with venture capital experts and practitioners. The analysis evaluates key policy instruments—such as co-investment schemes, tax incentives, startup accelerators, and regulatory reforms—and assesses their role in shaping VC activity. The findings indicate that although Kazakhstan has made significant progress in establishing institutional support for venture capital, critical constraints remain, including bureaucratic complexity, investor risk aversion, and limited exit opportunities. The study contributes to the literature by integrating global best practices with context-specific evidence, offering policy-relevant insights into how governments can more effectively design and implement interventions to strengthen venture capital ecosystems in developing economies.