Small and medium-sized enterprises in Ukraine before the full-scale invasion were the most widespread. The lion's share of employed economically active citizens, which is about 75% of all employed, is in small and medium-sized enterprises, and only 25% of Ukrainians work in large enterprises. Among the priority spheres of activity of small and medium-sized enterprises are wholesale and retail trade and motor vehicle repair. A significant number of small and medium-sized enterprises carry out their activities in industry, logistics, agriculture and construction. Therefore, small business enterprises are one of the driving forces of economic development, an effective means of structural restructuring, overcoming disparities in the certain market segments, activating innovative activities, developing competition, creating new job positions and reducing unemployment. The problem of the creating favorable conditions for the development of small entrepreneurship constantly requires changing the methods and forms of managing this process, improving and harmonizing the functions of managing it at all levels. In the modern conditions of regionalization of economic processes, the further development of small entrepreneurship requires in-depth study of its system-forming factors, territorial features, forming and implementation of the appropriate effective and flexible regional policy. Improving the development of small and medium-sized enterprises is a key challenge for every region, as this sector plays an important role in the ensuring economic growth and creation job positions. In the paper, we proposed the following global directions for improving the development of SMEs in Kirovohrad region: ensuring more easy access to financing; simplification of bureaucratic processes; innovation support; providing support in the field of education and skill development; providing access to the new markets; support for startups and the innovative enterprises; promotion of entrepreneurship and support in the field of marketing; ensuring stability and transparency in the field of legal regulation. These proposals will help to improve the development of small and medium-sized enterprises, make them more competitive and contribute to the overall economic growth of the region.