Small Innovative Entrepreneurship Research Articles

Development of small innovative entrepreneurship and its effectiveness in the national economy of the Republic of Kazakhstan

Object: The development of small innovative entrepreneurship contributes to the achievement of important social and economic goals. In this context, a number of important indicators can be used to evaluate the development of small business. These indicators include the number of small businesses operating in the small sector of the economy, the average wage rate, the growth of small business production, and the growth of investments in the small business sector. It helps to assess the effectiveness of investments in the small business sector. In the current economic literature, the term “innovation” can be used to emphasize relevant and widely used concepts. It is important because it shows the processes of creating new paradigms of economic development through innovation and science education. Small innovative entrepreneurship plays an important role in the creation of innovative infrastructure and contributes to the integration of scientific production into the economy through the transfer of scientific knowledge and technologies. Currently, it's evident that the financial health of Kazakhstan is closely linked to harnessing the economic capabilities of small-scale enterprises, along with the opportunities and provisions for their financial backing, highlighting the critical role of small businesses in the country's economic progression. Methods: For an article on the development of small innovative entrepreneurship in Kazakhstan and its effectiveness in the national economy, it is proposed to use an integrated methodological approach. First, review existing research and literature to assess the current status and dynamics of the sector, and analyze statistical data to understand its scope and contribution to the country's economy. Based on the data obtained, it will be possible to formulate targeted recommendations to improve the situation in the field of small innovative entrepreneurship, thereby contributing to the sustainable economic development of the country. Findings: The study highlights the significant contribution of small innovative entrepreneurship to the economic development of Kazakhstan, highlighting its role in creating jobs and stimulating innovation. Yet, for small enterprises to reach their full potential, enhancing governmental assistance and eliminating present obstacles is essential. This will facilitate the better incorporation of small businesses into the broader national economy. Conclusions: The article explores the impact of small innovative entrepreneurship on the economy of Kazakhstan, analyzing government support measures and their effectiveness. The focus is on identifying barriers to growth and proposing strategies to enhance the contribution of small businesses to national economic development.

Зарубежный опыт реализации инновационных технологий в малом и среднем предпринимательстве в новых рыночных условиях

Abstract. The article presents the results of a study of foreign experience in the implementation of innovative technologies in small and medium-sized enterprises. An overview of state support institutions and forms of stimulating innovation activity in the USA, Japan, France, Germany, Canada, and the United Kingdom was presented. The result of a comparative review of the directions of state support in these countries is the identifica-tion of similar methods of supporting small and medium-sized innovative entrepreneur-ship. The Russian problems of innovative development of small and medium-sized en-terprises are identified, in particular, instability of Russian legislation, high taxes, corrup-tion, lack of financial resources, high initial costs for business organization, saturation of sales markets, uneven development of regions, a pandemic. Modern innovative market-ing technologies that allow increasing the market share and income of small and medi-um-sized enterprises are highlighted.

SMALL INNOVATIVE BUSINESS DEVELOPMENT PROBLEMS IN GEORGIA

The sustainable development of small innovative entrepreneurship is quite a difficult task and requires systematic work, which must involve both the state, academic and industrial circles. It is necessary to create connecting rings between these areas. Based on these trends, a whole set of measures should be developed and implemented, which should be aimed at the mass acquisition of innovations. It should be noted that only with the fruitful interaction of science, entrepreneurship, society, and state and municipal bodies will it be possible to ensure the rapid pace of economic development of the country and the establishment of an innovative economy. Georgia has a positive attitude towards expected innovations along with the development of the country's economy. The relationship between income level (GDP per capita) and innovation is positive. A positive trend line indicates expected innovations in terms of revenue levels. Georgia's performance is in line with expectations of its level of development, the relationship between the input and output of innovation is negative. Georgia produces less innovative products compared to the level of innovative investments.

A systematic methodological approach to the development of small innovative entrepreneurship

A systematic methodological approach to the development of small innovative entrepreneurship

ФІНАНСУВАННЯ МАЛОГО ІННОВАЦІЙНОГО ПІДПРИЄМНИЦТВА В СУЧАСНИХ УМОВАХ РОЗВИТКУ

In this article, the theoretical basis for the study of financial and investment support of small innovative entrepreneurship is developed, in particular, the methods of financing small entrepreneurship, which is focused on innovative development, are studied. The research is based on empirical and theoretical methods, namely description and observation, analysis and synthesis, abstraction, generalization, explanation, induction and deduction. It was emphasized that the issues of innovative development of small entrepreneurship, which are significantly aggravated in modern conditions, should be raised and resolved in the current state, since the Russian-Ukrainian war makes it impossible to predict the future state of the spheres of activity in detail, and also strengthens existing and creates new risks, turning away from of Ukrainian business entities, many stakeholders, first of all, investors. Since before the war, small business faced a number of problems, the main of which was the attraction of investment funds, in the current conditions, the problems are becoming more and more, as well as the expectations from this type of business in the post-war period. Therefore, an important step is to conduct an analysis of all possible channels for finding investors, as well as their involvement in Ukrainian innovative projects. In addition, an assessment of the financing needs of small businesses in modern conditions of development was carried out by the categories of analyzed enterprises – micro-enterprises (excluding FOP) and small enterprises. The main organizational structures of investment support for small businesses are analyzed, including business incubators, venture capital investment, business angels, business accelerators, and business incubators. The study emphasizes that in order to effectively restore the country's economy, it is necessary to immediately, already during the war, resolve the issue of financing small innovative enterprises forming the infrastructure to support small and medium-sized businesses, since small entrepreneurship itself is the backbone of the economy, the backbone of the socio-economic well-being of Ukraine.Keywords:small innovative business, funding sources, venture funding, startup, innovative ecosystem.

ШАҒЫН ИННОВАЦИЯЛЫҚ КӘСІПКЕРЛІКТІ МЕМЛЕКЕТТІК ҚОЛДАУ ӘДІСТЕРІН ЖЕТІЛДІРУДІҢ БАҒЫТТАРЫ

The article considers the main directions of improving methods of state support for small innovative entrepreneurship. The main goal of government support measures is to ensure the development of small business as one of the most important elements of a market economy. As part of the implementation of this strategy, state support is enshrined at the legislative level. Formation of the primary support base for small innovative entrepreneurship is a complex and lengthy process. The main objectives of the state policy for the formation of market relations in the scientific and technical sphere are to stimulate the development of infrastructure for small innovative entrepreneurship, the development of competition by attracting financial resources and their targeted and effective use for the implementation of programs and projects for the creation of high-tech products. Innovation in any area of the economy requires financial investment. To obtain additional profit, improve the efficiency of the organization, obtain a socio-economic result, it is necessary to implement financial investments. Concrete ways of implementing state regulation and supporting the development of innovative entrepreneurship are proposed.

MEANS OF PRIVATE INVESTMENT OF SMALL AND MEDIUM INNOVATION ENTREPRENEURSHIP IN THE EUROPEAN UNION

The authors of the article have analyzed certain economic characteristics of private investment of small and medium-sized innovative enterprises in the European Union (hereinafter — the EU). It has been noted that, unlike public funding from the EU Member States and Structural Funds investment, it is appropriate to pay attention to the investment mechanisms used in the private sector to support small and medium-sized innovative entrepreneurship in the EU, which has its own specificity and sources. The features of such sources as bank lending, corporate and venture investing, as well as financing provided by business angels have been studied. It has been noted that bank loans for innovative enterprises in the EU have become more accessible, but the collateral requirements imposed by banks remain high. The reasons for the low level of corporate investment of innovative small and medium-sized enterprises (hereinafter — SMSEs) in some Member States are the lack of a developed culture of partial investment and the specificity of information exchange between companies and investors. The level of venture capital usage is low and, as a consequence, only a small number of SMSEs are attractive to venture capitalists’ investments. On the other hand, business angels are quite selective about investment objects. This determines their main activity at the stage of initial implementation of innovative projects.
 It has been concluded that a large proportion of SMEs face serious problems in accessing investment resources, and there are significant differences between countries, directly, in such areas as debt financing and, therefore, SMEs’ financing in Europe. is not homogeneous. Despite the large number of support instruments for investing such enterprises in the EU, successful implementation of initiatives does not occur in all countries and has a heterogeneous effect. In order to create a successful EU policy on supporting SMEs there is the need in more in-depth understanding of the problems and specificities of financing SMEs of the EU Member States.

О ПРЕДПОСЫЛКАХ И ОСНОВАНИЯХ ИССЛЕДОВАНИЯ ИННОВАЦИОННОГО ПРЕДПРИНИМАТЕЛЬСТВА

The authors of the article touch upon the question whether entrepreneurial activity is changing in the direction of innovation, or the innovative type of entrepreneurship is becoming more noticeable and significant in the system of economic relations. For that, they attempted to classify entrepreneurial activity by the nature of its origin: as a source of income, as a new market opportunity, as an innovation. The activity of using the terms “innovative entrepreneurship” and “technological entrepreneurship” in scientific publications is analyzed. Some reasons for the low innovative activity of Russian small and medium-sized enterprises in the South-Eastern economic zone of the Republic of Tatarstan are investigated. Based on the study, the authors draw a conclusion that large business can be a significant factor in the development of a small innovative entrepreneurship, and the nature of its influence requires a deep complex study.

IMPLEMENTATION OF TAX INNOVATIONS FOR UKRAINIAN STARTUPS

In recent decades one of the forms of small innovative entrepreneurship has become more widespread in the world – a startup. In order to stimulate the development of this industry, one of the priority areas of reforms is to create favorable tax conditions for startups. Сreating such conditions will be a direct way to attract investment in the national economy, both foreign and domestic. Such conditions will also contribute to the growth of gross domestic product and living standards of the population of a country. Startups today are developing small businesses in different countries. Large companies grow from them with potential for the future and competing products at the global level. Foreign experience shows that the application of simplified tax regimes is an important component in improving ecosystems for startups in any country. Ukraine has developed and implemented until 2030 the Strategy for the development of innovation, where startups are considered a structural part of the national innovation ecosystem. Within the framework of this Strategy was created a special legal and tax regime Diia City for IT companies and startups. That is why studying issues related to the conditions for the creation and operation of startups, their taxation, choosing a system that will reduce the tax burden, are relevant for the development of all innovative entrepreneurship. The article investigates acting taxation systems for startups in Ukraine and problems that arise in the application of the general and simplified taxation system and the new for Ukraine tax regime Diia City. The authors consider the key issues concerning the selection criteria for startups in the tax system which will allow them to reduce the tax burden. The article identifies a list of issues that need government support to improve the innovation ecosystem for startups in Ukraine.

Державна політика розбудови інноваційних стартапів в інтересах ендогенного розвитку економіки: кращі зарубіжні практики та рекомендації для України

The purpose of the article is to substantiate the theoretical and applied principles of small innovative entrepreneurship and develop recommendations for policies to promote the establishment of innovative start-ups, taking into account the best foreign practices in the interests of endogenous development of Ukraine’s economy. It is shown that the vital link in the ecosystem of start-ups is an entrepreneur-innovator. It is justified that the state’s efforts to accumulate knowledge and human capital should be complemented by encouraging innovative entrepreneurship. It has been found that the integration of start-ups into social networks and their close connection with the external environment is crucial, as well as the qualities of the entrepreneur-innovator and his team to overcome the problems of “novelty vulnerabilities” and “minor vulnerabilities”. Authors demonstrate that in the conditions of limited assets and a highly competitive market environment, the most perspective direction of developing innovative start-ups is their establishment of symbiotic relations with reputable companies. Their dynamic interaction and complementary measures, on the one hand, will ensure the viability of start-ups, and on the other, they will strengthen the technological potential of the existing business. Paper reveals the peculiarities of the policy of innovative entrepreneurship in the OECD countries. Development of innovative start-ups is a systemic process in which the government creates favourable conditions for its participants and directly participates itself. The state acts as an entrepreneur-innovator, taking on the risks of innovation related to uncertainty, and at the same time plays a role a contractor who buys an innovative product of start-ups, created with financial assistance within budget programs. Such policy of assistance at all stages – from development to implementation and introduction to the market promotes endogenous economic development and strengthening its position in the world market. It is revealed that the legislation of Ukraine only fragmentarily mentions certain aspects of the functioning of entities that form the ecosystem of innovative start-ups, without combining them into a single structure. This complicates the formation and implementation of a purposeful state policy to create necessary conditions and mechanisms to stimulate innovative entrepreneurship. To address the shortcomings, the authors propose regulatory and institutional changes. Paper recommends developing essential documents: the draft Law of Ukraine “On technology-oriented start-ups” and the project “Strategy for the development of technology-oriented start-ups in the interests of innovative development of the Ukrainian economy”.

The role and place of small innovative enterprises in the construction industry in the modern economy of single-industry towns

This article gives an author’s interpretation of a Russian single-industry town, in which the key factor in the socio-economic development of a territory is the successful development of a town-forming enterprise. It is proved that the development of single-industry towns can be promoted by the development of small innovative entrepreneurship. One of the promising forms of small business development may be the construction industry, which is one of the most promising industries in Russia. The main social functions of small business in the construction industry are highlighted.

Public legal means of investment of small and medium innovative entrepreneurship in the European Union

Problem setting. The development of social relations, the economic well-being of the population and the stable social structure of any state in the present circumstances are conditioned by a series of factors, one of which is the development of innovative infrastructure. One of the most important directions of development of the economic sector of our country was the formation of an innovative model of the economy, which puts to law the new tasks of clarifying the purpose and social value of law as a regulator of social relations. Analysis of recent researches and publications. The current state of the study of the selected issues indicates that the sources from which public-law organizations are investing innovative activities of small and medium-sized innovative entrepreneurship in the EU are insufficient. At the same time, the state policy of the EU countries in the scientific and technical sphere is realized through the use of various instruments, which include: legislation, tax policy, size and nature of the allocation of budget funds, including for the implementation of works in priority areas, the formation and maintenance of infrastructure, personnel, etc. Target of research is to identify the public and legal means of investing small and medium innovative entrepreneurship in the EU. Article’s main body. In the EU, the innovative component of public policy encompasses the scope of national scientific institutions (institutes, research centers, university laboratories, etc.). There are government programs that receive partial funding from the state budget. The state is guided by different criterias when deciding on the financing of specific works. First, the prospect of each specific direction is evaluated from the point of view of preserving the country’s achieved position on the world market in the future. Second, the recognition at the governmental level of innovation as a vital factor of economic development, the conduct of a broad government company on the problems of innovation. The current state of regulatory support suggests that structural funds such as the European Regional Development Fund and the European Social Fund should be considered as the main public sources of investment for innovative enterprises. In particular, such funds are implementing EIC Pathfinder Pilot, FET Innovation Launchpad, EIC Transition to Innovation Activity, EIC Accelerator, Programme for the Competitiveness of Enterprises and Small and Medium-sized Enterprises (COSME) etc. Conclusions and prospects for the development. In the EU, the investment of small and medium enterprises is not homogeneous, but a large part of them, despite the large number of investment support tools for such companies, face significant challenges in accessing investment resources. Developing a successful pan-European policy requires an indepth understanding of the problems and specifics of financing the innovation activities of small and medium innovative enterprises in EU Member States.

СТАРТАП ЯК НОВИЙ ЗМІСТ У ПІДПРИЄМНИЦТВІ

The article studies theoretical foundations for the essence of entrepreneurship and entrepreneur; specifics in defining the concept of “entrepreneur” by representatives of economic schools; four stages of formation of the theories of entrepreneurship, where the characteristic features of the entrepreneur that changed under the influence of socio-economic development (external environment) are analyzed. Based on the economic characteristics of changes in the development of macro and micro levels, the emergence of new types of entrepreneurial activity – startups – is justified; a startup is defined as a fast-growing entity of small innovative entrepreneurship with a short-term history of operations, which operates in conditions of uncertainty and aims to create a fundamentally new product to meet the specific needs of consumers. The logic of forming of the concept of entrepreneur-startupper in the structural scheme is substantiated; the characteristic of a startuper as a peculiar combination of transformed traits of an entrepreneur in accordance to the stages of development of the theory of entrepreneurship is given; the characteristic features of the startupper are revealed; the peculiarities of the functioning of startups in Ukraine are analyzed. The characteristic of the special features of the startup entrepreneur is offered; further study of theories of entrepreneurship in accordance to the trends of the global economy under uncertainty, as well as the study of the features of development and functioning of new business entities – startups as a solution for unmet consumer needs and how to use modern technologies to create a new product, are justified.

Development of small innovative entrepreneurship in the regions of Russia

The region studied in the article is characterized by the development of programs supporting small innovative entrepreneurship: there is a competition for the award of the Krasnodar Region Administration in the field of innovation activity “Best Project”, grants for the development of innovative technologies are also provided to subjects of innovation activity, and information support for innovation activity is being developed. To help small investment businesses from the regional budget are allocated grants for the purchase of fixed assets. There are common weaknesses in the development of administrative and production infrastructure of innovation activity of Kuban, which are expressed by the inefficiency of business incubators and the majority of technology parks at universities, limited conditions for the successful launch of serial and mass highly specialized production of competitive innovative products.

APPROACH TO THE COMMERCIALIZATION OF UNIVERSITY’S RESEARCH ON THE BASES OF SPIN-OFF COMPANIES’ CREATION

The article covers the theoretical approaches to the definition of the “academic spin-offs” concept, substantiates the need for the development of organizational forms of small innovative entrepreneurship in a university environment. The analysis of the prerequisites, factors and mechanisms for the creation and development of spin-off organizations. A set of measures was developed aimed at increasing the entrepreneurial activity of universities and stimulating the processes of commercialization of research results.

MECHANISM OF INNOVATIVE INFRASTRUCTURE OF SUPPORT OF SMALL BUSINESS DEVELOPMENT

The relevance of the stated theme is determined by the target setting of the Russian state to build a new economy of an innovative type, where small enterprises can become drivers of innovative development. The article investigates the issues of innovation development in Russia and in particular small innovative entrepreneurship. Based on the analysis of the current situation, the problems that hinder the innovative activity of small businesses have been identified, the main of which is the unformed mechanism of innovation infrastructure to support small business. The author’s interpretation of the mechanism of innovative infrastructure of support of small business has been offered. The сreated mechanism of innovation infrastructure to support small businesses can serve as the basis of scientific and instrumental approach to the formation of strategies and programs for the development of small innovative enterprises.

STRATEGIC OVERVIEW OF FINANCIAL SUPPORT FOR THE DEVELOPMENT OF SMALL INNOVATIVE ENTERPRISES IN UKRAINE

Introduction. Small innovative businesses play an important role in the economy of developed countries and are an essential element of the innovation process. Small enterprises are the most flexible, dynamic and widespread form of enterprises. Ukraine’s aspiration to European integration necessitates the introduction of an innovative model of development, one of the components of which is the development of a domestic innovation enterprise, which prompts to seek new approaches to the implementation of scientific, technical and innovative potential of the country’s economy. The purpose of the article is to find out the features and problems of financial support for the development of small innovative enterprises in Ukraine and to substantiate directions for its improvement. Results. According to the data of the State Statistics Service of Ukraine, innovation activity in Ukraine in 2018 was carried out only by every eleventh enterprise. The share of enterprises that introduced innovations in 2017 amounted to 16.2%, and those engaged in innovations 14.3%, respectively. At the same time, the share of innovative products in the total industrial volume was, according to the results of 2017, only 0.7%. In Ukraine, as of January 1, 2018, in the total number of enterprises (338256 units), the share of small business entities amounted to 95.5%. This testifies to the dependence of the level of development of the Ukrainian economy on their innovative activity. Among the range of obstacles to the successful functioning of innovative entrepreneurship, the problem of low efficiency of functioning of the financial mechanism of ensuring their development is the most urgent. Particular attention should be paid to the use of national competitive advantages, avant-garde industries, high-tech industries, such as space technology, aviation industry, biotechnology, tool manufacture, defense and industrial complex. Innovation demand in Ukraine should become not only an economic category but also an essential property of a person’s character. Conclusions. The development of innovative entrepreneurship is not carried out quickly and purposefully. Its potential, as the main tool for commercializing scientific ideas, is practically not implemented in Ukraine. Before small innovative enterprises, there are many barriers and obstacles that prevent them from working effectively. Thus, in order to provide effective financial support for the development of small innovative entrepreneurship, it is necessary, first of all, to improve the financial and tax policy of supporting small businesses, as well as to increase the efficiency of the use of established institutions of market infrastructure for supporting small businesses. The details of the mechanisms for implementing these measures should be the subject of further research, the results of which will be highlighted in the following publications.

THE EVALUATION OF THE EXPEDIENCY’S DEVELOPMENT AND SUPPORT OF SMALL INNOVATIVE ENTREPRENEURSHIP IN RUSSIA

This article analyzes the situation of innovative approaches to building business processes and interaction between universities, the government, and representatives of the business environment. A methodology is proposed by the authors for calculating the feasibility of government support for small innovative enterprises (SIEs) as independent small business entities organized at higher educational institutions of the Russian Federation, the activities of which are aimed at research, development, implementation, and commercialization.The importance and role of small innovative entrepreneurship in the economy of the country and large cities is becoming the main world trend. Russia is trying to match its innovation strategy in small business, but the success is, unfortunately, still negligible. On the part of the government, millions of rubles are allocated to support small innovative entrepreneurship, as well as the construction of technology parks, the creation of business incubators, technological laboratories, and platforms being organized at universities in order to ensure the implementation of innovative projects. In accordance with the Federal Law of the Russian Federation No. 217-FL of August 2, 2009, universities were able to register small innovative enterprises on their territory as independent small businesses in the sphere of innovative development, whose activities are focused mainly on the commercialization of intellectual property objects and their active promotion in the market.Nevertheless, the implementation of new technologies and know-how is associated with greater risks of SIEs and needs a methodical approach to assess the appropriateness of providing government support to such enterprises. We are going to consider and calculate the indicator of the feasibility of government support for a small innovative enterprise in the amount of 50 million rubles for a period of five years for its development and will prove the increase in the efficiency of the enterprise and the possibilities for its development through the government support mechanisms for innovations.

ORGANIZATIONAL-ECONOMIC ASPECTS OF THE DEVELOPMENT AND OPERATION OF SMALL INNOVATIVE BUSINESS

The article examines problems of development and functioning of small innovation entrepreneurship in Russia, discusses their advantages and disadvantages. Statistical indicators of development of innovations in recent years in the context of the report "Global innovation index". The authors off er interventions aimed at the expansion of reproduction of high technologies for the further development of innovation in the Russian Federation. Critically considers the opinions of various experts in forecasting the development of macroeconomic situation in Russia. Conclusions about the necessity of the innovation process in the economy. Purposes / tasks. The aim of the article is elaboration of measures aimed at enhancing the reproduction of high technology for processes of development and implementation of innovations in the field of engineering, technology, Economics, organization and management. Tasks of the article: to analyze and isolate problems pertaining to: • the state of innovation activities in Russia; • a weak small innovative enterprises; • state stimulation of small innovative enterprises; • increase the pace of development of small business in innovative sphere of the country. Methodology. In conducting this research the main sources of baseline data were the materials of state statistics, data from Rosstat and excerpts from Government programs. The basis of methodological developments based on a descriptive, comparative method and morphological analysis. They are allowed to perform all of the necessary information and to draw conclusions on this work. Results. This broad concept to small innovative entrepreneurship, analysed its current status in Russia, given his brief analysis of the advantages and disadvantages. Shown low efficiency of functioning and development of small enterprises in General. Analyzes the dynamics of the positions of the Russian Federation the report "Global innovation index": 2014–2016, as well as Russian and foreign experts forecast the development of the innovative aspect of the Russian economy. The proposed measures aimed at the eff ective development of small innovative entrepreneurship. Conclusions / importance. Small innovative businesses in Russia will be able to successfully and quickly evolve only in the case of a deliberate and consistent policy of public authorities and with the active support of business and public organizations in the country.

Small innovative business in Russia: regional aspect

The article is devoted to research of innovative activity of small business in Russia by enterprises clusters depending on the number of employees. Considerable attention is paid to the study of the dynamics and structure of the main indicators, characterizing the available resources and the results of innovative activities, that allows making a number of important conclusions from practical point of view. The analysis has shown that small enterprises, in spite of small scale of innovative activity, operate mostly on new sales channels that help them to ensure product competitiveness on local market. At the same time, competitiveness of small enterprises on global market is significantly higher than the average level for Russia. In their innovative strategies, small businesses mostly focus on the development and modification of products or services over its imitation or total borrowing. The analysis has shown that enterprises with the number of employees from 51 to 70 are leaders to deliver new products on market among small innovative companies. About 10% of the products of this group is new to the world market. Groups of small enterprises with 71-80 employees and up to 20 people are coming next. The share of new products for the global market, made by these enterprises is 5%, which is significantly higher than the national average. These groups of small innovative enterprises are “points of growth” on the innovation effectiveness and competitiveness of products in Russia. The second part presents the study of regional differentiation of small business development in Russia. Multi-dimensional classification helped to divide Russian regions to homogenous groups depending on the development level of small innovative entrepreneurship. The significance of the indicators is proved by using of variance analysis (ANOVA) and calculating of F-statistics values. About 16% of small innovative enterprises are leaders on the resources invested in innovative development, 19% of small innovative enterprises are leading in innovation performance and in the share of innovative products and services in the total volume of the shipped goods. However, approximately 64% of Russia’s regions are characterized by low indices, both resources and results of innovation activity. This is mainly rural, agricultural areas or regions. These regions have medium and large enterprises. The government should develop specific measures to improve the investment climate, innovation infrastructure, as well as institutional reforms for the development of small innovative entrepreneurship in these regions.