Government Financial Support for Small Businesses in the Russian Federation

In the context of economic stagnation in Russia, the question of how to provide state financial support to small business entities has become particularly relevant and it is so especially in the industrial sector, which accounts for only 10% of the structure of enterprises.Small business entities are one of the factors of economic development of the country and they are an important element of the economic system.Thanks to them unemployment is reduced, competition is created in the market of goods, exports are developed and revenues are replenished in the country's budgets.Due to the provision of state financial support, their business is developing, but the current support system has its drawbacks, which need to be corrected.As part of the research, it was determined that the most effective measures are direct credit and financial instruments in comparison with subsidizing the costs of business entities, as well as indirect financial support measures based on tax benefits. The research was carried out in the field of the activities of financial institutions, tax benefits and quotas for government procurement, as well as it was comparison study of support measures in St. Petersburg, the subject of the RF, showing the best results in supporting of business entities and deeper analysis in the Saratov region, which indicators of support and revenue are average in the RF. As a result, it was determined that support measures aimed at creating and developing industrial business are not enough.Based on the research of the state financial system for supporting business entities, the main problems were identified and recommendations for improving the system and its tools were outlined. The main recommended measure was the following: provision of more financial and credit support measures and application of tax benefits for small business entities.It is necessary to develop special products aimed at supporting business entities of the industrial sector of the economy.