ИСТИНА

Small cities are important members of regional ecosystems. The degree of their development largely determines sustainable development of Russian regions. However, at present there is no integrated approach to the sustainable development of small towns, based on their resource potential and the possibilities of their networking. In particular, it is necessary to understand the role of financial potential as a source of competitive advantages for small towns. This paper investigates the role of financial potential as a source of competitive advantages for small towns, main obstacles to their financial development, and prospective directions of their financial environment improvement.