The research isfocused on specific features of small entrepreneurship in forestry sector and development of specific organizational and economic tools in of the forestry sector. The authors have analysed the work of small and medium-sized businesses of Russian Federation in the forestry sector and have made a conclusion that there are negative tendencies in the development of entrepreneurship in this area. Thanks to the ranking method and expert assessments, the causes of the intensification of

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... the negative trends have been identified. Taking into consideration the analytical sectoral indicators and the principles of institutional sectoral regulation, the authors have developed an organizational model of interaction between the state and small entrepreneurship in forestry sector. Basing on the organizational and economic characteristics of the forestry sector, the researchers have also developed a tool for preventing the negative trends in the development of small entrepreneurship in this sphere.