Abstract
<jats:p>The relevance of the study is due to the key role of small and medium-sized enterprises (SMEs) in the socio-economic development of the regions of the Russian Federation, in particular the Republic of North Ossetia-Alania, in the context of modernization of the regional economy and the need to create an effective business environment. The purpose of the work is to identify current trends, problems that hinder the development of SMEs in the country, and to develop practical recommendations for their elimination. The methodological basis of the study is a set of general scientific methods, including system and statistical analysis, comparative historical method, content analysis of regulatory documents and publications, as well as methods of empirical sociology for assessing the perception of the business climate by entrepreneurs themselves. As a result of the analysis, it was found that, despite the positive dynamics of key indicators, such as the growth in the number of SMEs and an increase in turnover, a number of systemic problems remain. These include limited access to financial resources, complex administrative procedures, unstable regulatory frameworks and insufficient levels of innovation. The main results are recommendations aimed at improving the institutional environment, reducing the administrative burden, expanding financial and infrastructure support programs, which together will contribute to the creation of more favorable conditions for sustainable growth of entrepreneurship in the region.</jats:p>