This article presents the results of the development of an algorithm for legal support of small businesses based on studying the dynamics of economic processes in this area of the economy. The main significant problems hindering the development of small and medium-sized businesses are considered. The state is a stakeholder in the development of this sector of the economy, therefore, to support it, it must develop effective and mutually beneficial programs. The analysis of the activities of small enterprises in the Republic of North Ossetia-Alania is carried out. A high share of investments by small enterprises in the total volume of regional investments in fixed assets in the country as a whole was noted, which is explained by the active participation of small businesses in housing construction and the implementation of large investment projects.