This article presents the results of scientific research on the development of theoretical and methodological provisions for the development of small businesses in an innovative economy. The purpose of the research is to develop methodology and conceptual framework, as well as methodological and practical recommendations for the small businesses development in an innovative economy. Following tasks were solved to achieve the goal of the research: substantiation of the endogenous nature of the relationship between culture and economy and entrepreneurship; investigation of the influence of cultural and value factors on goals, motives, behavior models and communicative practices of entrepreneur-ship; description of the mechanism underlying the influence of economic and cultural norms on the logic of decisionmaking of entrepreneurs; development of the model of entrepreneurial activity based on a combination of transactional and transformational approaches and obtaining different types of entrepreneurial rent; development of the theoretical and methodological approach that provides a systematic and holistic study of the mechanism of formation of competitive ad-vantages of small businesses in terms of center-peripheral differentiation of innovation processes. The conceptual development of scientists and economists who have formed and developed general scientific and socio-humanitarian methodological approaches (systematic, constructivist, historical, evolutionary, behavioral, situational), as well as research on current trends in the development of small businesses presents the theoretical and methodological basis of the research. The methods of historical-logical and comparative analysis, subject-object and functional-structural methods, of scientific observation methods were used in the article to justify the conclusions and positions. The main conclusions and provisions expand the theoretical ideas of small businesses development in an innovative economy. The usage of the results of the study in the development of programs of state regulation of small businesses at the regional and local levels presents the practical significance of the research.
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