Regional Features of Organization and Functioning of Small and Medium-Size Business

Abstract

The sector of small and medium-size business is now one of the most perspective for progressive development of the national economy as a whole and the regions in particular. Support of the subjects of small-scale business is one of priority directions of the state policy, as the sector is a key link in the solution of many social and economic problems. Small and medium-size business forms competitive environment, promotes introduction and development of innovative activity, satisfies the requirements of the regional markets for different goods and services, reduces unemployment and fulfills many other functions. Effective functioning of the enterprises of small and medium-size business forms and strengthens potential of regional economy development, that, in turn, gives economy development nationwide. In the article the advantages of SMSB in comparison with the large enterprises are analyzed. The problems characteristic of this sector of economy are considered, and the ways of their solution are suggested. Besides, the statistics allowing to estimate the development level of small and medium-size business in the regions and in the country on the whole is presented in the article.