Аннотация:After the 2020 shock, many countries are looking for new sources of growth. Entrepreneurship has been declared one ofthe priorities in Russia; new support tools have been introduced since 2010. A significant interregional disparity ofinstitutional environment and business development remains. Therefore, we aimed to identify determinants of smallbusiness development in the Russian regions. According to econometric results, household incomes, access tointernational and interregional markets, and capital availability can be the most significant factors. Small businessdensity is lower in regions with a high crime rate because of greater investment risks. Internet-access is also positivelysignificant for SMEs development as it provides new market niches. State support in the form of tax breaks and holidayscan have a positive effect, but this impact is limited. Regional tax incentives, tax audits and special economic zones areinsignificant if we consider the general institutional environment. The identified factors can help to understand thetrends and policy opportunities of entrepreneurship policy in Russia.