Article is devoted to the development issues of small and medium-sized, in particular, innovative, business in the regions of modern Russia. Urbanization of Russia continues. People move to the capital cities, as the development process occurs only in them, as many believe. This, as it seems to the author, is the primarily cause to the reduction in numbers of small and medium-sized enterprises in the Russian province. Deterioration of working conditions of business at all levels, slowing economic growth, economic and political sanctions are the causes of deterioration of the business climate in the country. Article emphasizes the need to preserve, enhance and further develop the various settlements on the territory of Russia, which is possible only by activating the economy. In turn, the economic recovery is only possible with the participation of the business. Economic slowdown adversely affects the prospects of the existence of small and medium-sized enterprises in the Russian Federation. Some measures to create conditions for the development of innovative small and medium-sized businesses in Russia are suggested.

innovation, economic slowdown, small and medium enterprises