Introduction. The article considers the problems of formation, development of small and medium entrepreneurship in modern Russia, creation of necessary conditions for its institutionalization. It is noted that development of modern Russia in the conditions of mass sanctions from the countries of the unfriendly West largely depends on development and institutionalization of partnership between business and government in order to achieve the goals of development of the Russian economy and statehood. Consideration of various types of state regulation of both economic and legal nature allowed to determine the features of state regulation of small and medium entrepreneurship. Methods. The methodological basis of the study conducted by the authors of the article includes a system of philosophical, general scientific and specific scientific (analysis, synthesis, specific historical, logical, etc.) methods of cognition. Results. The study revealed that currently the share of small and medium entrepreneurship in Russia's GDP is at a very low level – 20%, which is three times less than the indicators of other countries. Development of this sector of the economy is impossible without state support, its increase and institutionalization of entrepreneurial activity. The successful development of the Russian state largely depends on the completion of the processes of institutionalization of both state authorities and business. A special role in the interaction of the state and the business community belongs to non-governmental institutions and various associations of entrepreneurs. At the same time, the partnership of the state and business is actively institutionalized in the modern state, which is characteristic of the service state model.
Small and medium-sized businesses, institutionalization, state regulation of the economy, interaction between business and government, legal liability, state support.
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