The main directions of increasing the potential of small businesses and private entrepreneurship in the country's innovative development

The article describes and analyzes the main directions of increasing the potential of small businesses and private entrepreneurship in the country’s innovative development. In the last few years, small business has acquired great importance. Small enterprises are effective not only in the consumer sphere but also as producers of individual units and small mechanisms, semi-finished products and other elements necessary for the production of final products, whose output is not profitable for large enterprises. The service market creates favourable business conditions due to the large capital turnover, which allows many small businesses to be involved in this field of activity, facilitating the employment of a large number of economically active persons in the small business. Based on the results of the analysis, more effective models are proposed.