Abstract
The purpose of the article is to theoretically substantiate the influence of institutional factors and, above all, the institutional environment on the development of small business in the conditions of digitalization of the economy. The quality of the institutional environment largely determines the possibilities of unlocking its potential Today, it can be clearly stated that the Russian institutional environment is very unstable due to the crisis situation caused by the tightening of sanctions. Small business has not yet recovered from the pandemic, and the increasing uncertainty in the Russian economy cannot but affect the expectations of small businesses. Small business incomes do not only lack growth, they are shrinking. All this confirms the need to adjust the institutions and mechanisms of the system of state support for small business, taking into account its capabilities in the digital economy. Small businesses objectively feel the need to use digital technologies in their activities, because they allow you to expand its capabilities. This further actualizes the need for systemic measures to support it in various fields of activity in the context of digital transformation.
 In the study of the tasks set, the methods of theoretical analysis were used: the method of scientific abstraction, statistical analysis, the method of expert assessments, as well as synthesis, deduction and induction.
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