ANALYSIS OF THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED ENTERPRISES IN RUSSIA: ESSENCE, FUNCTIONS, CHARACTERISTICS

The article is devoted to the analysis of the development of small and medium-sized enterprises (SMEs) in Russia and reveals their essence, functions, and specifics. The author emphasizes that small enterprises are drivers of innovation, sources of employment, and factors of social stability, but their potential is not fully realized due to institutional and market constraints. The legislative criteria for classification as an SME are defined, and the benefits and simplified reporting regimes are described, as well as the classification of enterprises into micro, small, and medium-sized companies. Three global models of small business are identified — subcontracting, local, and innovative — and it is shown that commercial forms dominate in Russia, while the knowledge-intensive sector is underdeveloped. Particular attention is paid to the advantages of small companies: flexibility, rapid adaptation to demand, rational use of resources, and contribution to regional development. At the same time, key problems are identified: the shadow nature of some operations, a lack of financing, high sensitivity to inflationary and energy shocks, and fragmented government support. As a result, the author concludes that a comprehensive policy is needed, including improving the regulatory framework, expanding access to finance, and creating a support infrastructure, which will enable SMEs to become a sustainable source of economic growth and increased competitiveness for Russia.