Law and Business: Revising the Criteria for Small and Medium Entrepreneurship in the Context of the Theory of State and Law

The article analyzes the theoretical and legal nature of the general criteria for classifying business entities as small and medium enterprises (SMEs) and their function in legal categorization and differentiation of legal status. Using the evolution of Russian criteria (headcount, income, independence), the article demonstrates their connection with the Unified Register of SMEs and law enforcement (administrative practice of the Federal Tax Service, arbitration cases). The purpose is to assess the adequacy of the current criteria from the standpoint of proportionality and legal certainty and to identify areas for their updating, taking into account international experience (Belarus, Kazakhstan, USA, China). The methodology includes formal-legal, logical-dogmatic, systemic-structural and comparative-legal approaches, analysis of law enforcement and elements of the statistical-descriptive method. Results: SME criteria act as legal facts triggering special status and targeted regulation, the Russian model is generally viable, but excessively rigid: financial thresholds are not indexed, a single limit on the number of enterprises ignores industry differences, and the independence test may restrain investment. The proposals include regular indexation of financial thresholds, careful sectoral differentiation, clarification of the independence criterion with expanded exceptions for development institutions and venture investors, and procedural guarantees for maintaining the SME register (notification, appeal, and status restoration). Conclusion: adjusting the criteria will fully implement the principles of proportionality and legal certainty and fairly distribute the regulatory burden.