Small business is a part of highly developed economy of the country. And, of cours?, it has to fulfill some particular functions, which will help the whole economy of the country to harmonically develop. Actually, small business guides effective innovations in mass production. Due to the small fleet of equipment and non-mass output, small business enterprises spend less significant amount of financial resources and time to process change than large ones, thus identifying the most effective innovation.
Starting a small business in Russia is a challenge despite large government investment and support programs.
In 2013 the Government spent 124 billion rubles on support programs. But it isn’t a plaster for all sores. In 2013 the amount of small enterprises in Russia slightly grew due to a simplified registration procedure, but the dynamic is negligible and there are still enough problems to deal with.

Problems
Small business does not perform the basic functions to diversify production and implementation of effective and innovative projects, and only acts as an intermediary between the manufacturer, usually foreign, and domestic consumers. It’s because of Russian industry can not withstand global competition. Small business is growing in the sphere of rapid turnover of capital and is not involved in the field of scientific research. This has a negative impact on economic development. Small business in Russia is not conducive to the development of the real economy, because it does not perform the function of selecting the most advantageous innovations in mass production. Of the total number of small businesses, only 10% are in the production sphere. Talking about scientific sector, there are no small firms currently presented. Also, there is no communication between the scientific and the industrial sector of the economy
This situation was caused by several reasons, such as:
Lack of clear effective legislation to coordinate small bus...