Vestnik OrelGAU, 4(49), August 2014 UDC 331.5.024.5 DEVELOPMENT OF SMALL BUSINESS IN RUSSIA AND ITS IMPACT ON THE EMPLOYMENT OF RURAL PEOPLE Lovchikova E.I., Pervykh N.A., Associate Professors Orel State Agrarian University, Orel City, Russia E-mail: elovchikova@rambler.ru, prorector2@orelsau.ru ABSTRACT Small business development is one of the key elements of Russian economy growth promoting formation of the "healthy" competitive environment, increase in production of Gross Domestic Product, population employment, growth of its actual income, life upgrading. <...> Pliability and management simplicity of small enterprises, ability to further of scientific and technical progress and to mobilize the considerable resources of production and finance of the society predetermine the important economic, antimonopoly, innovative and social role of this sector of economy. <...> The necessity of working out of principally new conception of regulation and supporting of small business in context of forming of economic policy on macro- and regional levels is conditioned by absence of common approach to the realization of its complex support which takes into account the specific regional features. <...> Development of small business is proved to be one of the main strategic directions of the state policy. <...> The studies revealed the dynamics and features of small enterprises development in Russia. <...> For all that it is emphasized that proper management mechanisms of the system state support of small business development in Russia are not created. <...> At that time their absence prevents the home development and dynamic growth of small enterprises. <...> The estimation of labour resource capacity of small business development in rural areas was conducted. <...> In the article the problems of business in the rural community was depicted and suggested the means of its activation. <...> The authors gave reasons for the necessity of state intervention in the functioning of small business in the current conditions of the market economy and the basic forms and methods of such effects: legal regulation, finance and credit, tax tools, personnel and information support of small business. <...> KEY WORDS Small business; Employment; Economic expansion; Government support; Rural population. <...> One of the priority tendencies of Conception of long-term social-economic development of Russian Federation is the assistance of small and middle business. <...> In the mature economies of the world entities of small business have proved <...>