Importance Considering stable stagnation and even the crisis in the Russian economy, there is a need to identify and effectuate new growing points, including those in small and medium-sized entrepreneurship. In April 2015, the State Council of the Russian Federation held a meeting to find certain solutions to this issue. The article compares conclusions of the meeting and recommendations with those of a similar discussion that took place in the end of 2001. Objectives The objectives of the research are to identify reasons for low efficiency of the current State aids to small and medium-sized businesses, corroborate new legislative, economic and institutional basics of the State policy on smaller formats of doing business. Methods This research uses data of the State Statistics Service, and presents a content analysis of various researches and surveys. Results The article illustrates the main trends in development of small and medium-sized entrepreneurship of the Russian economy, main difficulties and barriers that currently prevent smaller businesses from providing more substantial contribution to innovative modernization of the Russian economy, improving its competitive ability and pursuing import substitution goals. Conclusions and Relevance Following the research, I outlined a set of proposals to adjust the key institutions and instruments of the State policy concerning small and medium-sized entrepreneurship. The policy should be integrated into the strategic planning system, aligned with the State industrial policy. The State aids should be decentralized and more specifically allocated to various groups of small businesses per type.
Keywords: small business, medium-sized business, State aid, strategic planning, industrial policy, decentralization
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