The research is aimed at a statistical analysis of the development trends of small business in Russia and the identification of its special features in the light of institutional changes. The work highlighted key indicators of the regional development of small businesses, examined the size and structure of small businesses by type of economic activity, assessed the contribution of small businesses to the country’s economy, and identified socio-economic characteristics, determining the formation of a small business. The results presented are oriented towards providing analytical and warning information for possible use in supporting the sector.

The paper deals with the problems of the market economy that shape the efficiency of small and medium-sized businesses. The authors have conducted an overview of the history of the problem of development of small and medium-sized business institutions, identified their critical points, and evaluated the regional development of small and medium-sized businesses. An assessment of the current situation in the development of small and medium-sized businesses leads to the conclusion that entrepreneurship is no longer only an economic but also a social function of the realization of the public good. For an entrepreneur, his activity remains the realization of his talents, skills, and abilities, bringing the public good, rather than a profitable occupation. Groupings that show the degree of regional differentiation are used to assess the regional development of small and mediumsized businesses. The paper assesses the impact of COVID-19 on small and medium-sized businesses.