Development of small and medium-sized business is one of the priority trends of social and economic development of Veliky Novgorod. The small and average entrepreneurship in many respects determines rates of economic growth, a condition of employment of the population, structure and quality of an output. Inherent to small enterprises flexibility and high adaptability to promote market conditions stabilization of economic process in the city. At the same time, rather low yield, high intensity of work, complexity with introduction of new technologies, limitation of own resources and the increased risk in competitive struggle are typical to the sector of small entrepreneurship.

In 2010 in Veliky Novgorod 1856 small and medium-sized enterprises with an average number of 29861 persons performed activities. 6820 people were registered as individual entrepreneurs. Thus, the number of the employees in small and medium business in Veliky Novgorod constitutes 36681 persons - about a third of the total number of employees in the city economy.

From the total number of employees of small and medium enterprises 46% are occupied in the production sphere (industry, construction, transport and communication), about 22% - in trade, 13% - in a services sector (hotels, restaurants, other types of service), 19% - in the sphere of real estate transactions.

Programs on support of small and medium-sized business are accepted for the purpose of ensuring system development of small and average entrepreneurship at the level of municipalities in the Novgorod region. The amount of financing of federal and municipal programs increased dozens times for the period of 2005-2011. Specific mechanisms of the state support of subjects of small entrepreneurship which continue to improve taking into account the most actual tasks were developed during this time.

According to the decision of the Duma of Veliky Novgorod № 824 of 03.11.2010 the municipal target program "Development of Small and Average Entrepreneurship in Veliky Novgorod for 2011-2013" was approved [1]. The program is implemented according to supplied actions. The amount of the funds allocated for implementation of actions of the program will be 73,080 million rubles, some of them: budgetary funds of 13,5 million rubles, including 4,5 million rubles in 2011, 4,5 million rubles in 2012 and 4,5 million rubles in 2013. In total 59,580 million rubles of extrabudgetary funds are allocated for implementation of actions, including: 2011 - 19,860 million rubles, 2012 - 19,860 million rubles, 2013 - 19,860 million rubles.

Among the main tools of a financial support of subjects of small entrepreneurship can be noted provision of subsidies to beginning subjects of small business on creation of own business which is valid from 2009. Subsidies are provided from the budget of Veliky Novgorod to applicants to one applicant once for the purpose of cost recovery on registration of the legal entity or the individual entrepreneur (state fee) and the costs connected with the beginning of business activity. The size of a subsidy constitutes 70 percent of costs, but no more than 200,0 thousand rubles.

Interest of regions to microfinancing system grows. Issuance of loans to the small microentities is performed for a period of а year in the amount of 1 million rubles, an interest rate - a discount rate of Central Bank of the Russian Federation;

Priority types of business activity in the Novgorod region for 2012, for implementation of support in a framework of implementation of actions of the program of support are: innovative activities and production of the knowledge-intensive out put, production of all types of products, tourism and souvenirs production, provision of sports and improving services, provision of services for the organization of family rest.

As a rule, subjects of small entrepreneurship, need small short-term loans and have no access to credit resources of commercial banks as they have no credit history, they don't possess property, sufficient for providing bank loans and can't provide sufficient profitability of credit operations of banks.