The article discusses the key differences between the concepts of "business" and "entrepreneurship". Theoretical approaches to understanding the "small business" category are analyzed and systematized. The criteria for classifying a business entity as an MP in the Russian Federation and foreign countries are studied. The forms of MP subjects are defined in accordance with the legislation of the Russian Federation. The main types of MP subjects in the aspect of industries and spheres of economic

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... activity are highlighted. The functions of small business are analyzed and systematized. As a result of the research, it is proved that the functions implemented by small businesses create favorable conditions for stimulating economic growth. The specifics of small industrial enterprises and their impact on the economy are established.