The article deals with the key issues of the external and internal environment of entrepreneurial activity in the context of public governance optimization in case of economic systems transformation. The object of the study is micro-entrepreneurship in Russia. The subject of the study is the relationship between public authorities and representatives of small business in Russia. The purpose of the work is to analyze the current state and directions of improvement of public regulation of small business in modern Russia. As a basis of the work the author used scientific papers of the following Russian scientists as Ageeva O. A., Devyanin A.V., Valeev, T. A., Kalinina, M. K., Kostenko R. V., Muradyan L. Z., Question E. P., Maslennikova A. Yu., Popov I. N., P. S. Musaeva, Alimirzoev M., Polyakov D. M., Posokhova A.V., L. V. Slezko, etc. Informational foundation of the article is represented by the statistic data of the Unified Register of Small and Medium-sized Enterprises of the Federal tax service of Russia and the report of the Ministry of Economic Development on the obtained results concerning the improvements of entrepreneurial activity, small and medium-sized enterprises development and individual entrepreneurial incentive support. The article states that the factors hindering the development of entrepreneurial initiative in Russia in the context of achieving sustainable and successful functioning of small businesses are overstated tax burden, unfavorable investment climate, and lack of a workable system of integrated support for startUPS, insufficient information, psychological and scientific support of business entities. At the same time, imperfection and inconsistency of legal acts, unbalanced and incorrect work of controlling and inspecting bodies are the most important destructive elements of the socio-economic system of Russia that hinder the development of small business. Scientific novelty. Based on the above, the author concludes that implementation of the process of administrative reform aimed at minimizing unproductive bureaucracy and corruption in public administration is the most important condition for the development of entrepreneurial activity in Russia.
