Sustainable development of rural areas is a multifaceted and complex concept. One of the factors affecting the prosperity of the regions is the presence of small and medium-sized businesses. Improving government programs to support small and medium-sized businesses is a priority of state policy. The theoretical methodological and practical foundations of the strategic development of small and medium businesses were investigated. We have identified the main factors affecting the development of small business in Russia, such as low population density, low pre-emptive activity of the population, low support from the regional authorities. Creating an entrepreneurial environment is a priority to stimulate the development of small and medium-sized businesses.
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