The author reveals the essence of the concept of "entrepreneurship", the impact of the economic (market) culture on the processes of modernization and the successful development of small businesses in certain regions as compared to other regions.The article describes the process of small business formation in Russia, highlighting its main stages; it also presents the key indicators that reflect its current status.The analysis of the existing system and measures for supporting small and medium businesses has been carried out. Based on the research, the key factors adversely affecting the development of small and medium entrepreneurship have been pointed out.