The goal is to explore the state of development of entrepreneurship and business climate for the formation of a clear mechanism of state support for small and average business in conditions of economy modernization. A special science-based methodology was developed to monitor the condition of entrepreneurship development and business climate in the country. This, in turn, will be the main lever for timely adoption of the necessary decisions by the state and targeted assistance to entrepreneurs. General research methodology of this research article is based on economic ideas and concepts. The basis for this is the management concept of small entrepreneurship in the Republic of Kazakhstan, which is determined through the use of system, functional, cluster-network scientific approaches to the formation and effective functioning of the management system. In the process of achieving the objectives of the study, a questionnaire survey was conducted, which is one of the forms of statistical observation. Of particular relevance is the development of a clear mechanism for monitoring the activities of state bodies in compliance with legislation in the sphere of entrepreneurship support in the Republic of Kazakhstan. This will allow determining clear priorities of the state policy to support entrepreneurship, to establish priorities in the development of new tools for the development of fast growing innovative small and medium-sized businesses, with the aim of providing targeted support point. [The page number (6494) on the last page is incorrect. The correct page number should be 6393. The page range (6381-6394) listed on the PDF is incorrect. The correct page range should be 6381-6393.]