Purpose – This article offers a hypothesis that small business cannot activate in developing countries without state stimulation, as distortion of market mechanism does not allow creating necessary competitive environment and eliminating incoming barriers. The purpose of the article is to verify this hypothesis, determine perspective, and develop recommendations for state stimulation of development of small entrepreneurship in developing countries. Design/methodology/approach – As methods of conduct of scientific research, this work uses the method of systemic, problem, comparative, and structural & functional analysis, as well as method of modeling and formalization. Findings – The authors determine specifics and role of small entrepreneurship in developing countries. The work views practice of state regulation of development of small entrepreneurship in developing countries, which allowed determining positive and negative aspects of such management and barriers for development of small business. Originality/value – The largest scientific novelty and value belongs to the developed proprietary model and recommendations for stimulation of development of small entrepreneurship in developing countries.

Olga N. Kusakina Et Al (2016). State Stimulation of Development of Small Entrepreneurship in Developing Countries, European Research Studies Journal Volume XIX Issue 2, 276-284