Scientific Journal of KubSAU

The article examines and summarizes the approaches to the study of innovation activities of small and medium-sized businesses. It gives substantiation of the innovative activity of small and medium-sized businesses, along with big business. Three groups of studies aimed at understanding the conditions and substance of innovation activities of small and medium-sized businesses are identified. The first group consists of empirical studies of small innovative business practices and its support in certain regions. The second group of studies analyzes the infrastructure of innovative activities of small and medium-sized businesses as a prerequisite for its development. The third group of studies examines the institutional constraints of innovative activities of small and medium-sized businesses. The analysis of the development of domestic and foreign authors is carried out. It was revealed that the institutional approach gives the modern tools for the analysis of the conditions of innovation activities of small and medium-sized businesses, namely the institutional constraints, entrepreneurship support institutions. The role of taxation as one of the key factors shaping the institutional environment of entrepreneurial activity is noted. Thus, article systematizes approaches to the analysis of innovative activities of small and medium-sized businesses, highlights the role of institutional conditions and restrictions. The results are useful for the formation of the strategy of development of small and medium entrepreneurship in order to enhance its innovative activities