The importance of developing small enterprise at all levels (federal, regional, municipal)is pressing in Russia now. Solving this matter is seen to be a possibilityto speed up modernization of the economy in Russia, to transfer it to an innovativeway of development and to fi nd more effi cient models to support small enterprise.Since forming small enterprise takes place at the municipal level, it is therethat our attention must be focused on.Th e author singles out three main stages of the interaction of small businesswith local authorities: the fi rst stage (from 1990 to 2003) is a period of an activesearch for models of support; the second stage (from 2003 to 2007) is a period oflocal government reforms an its further development; the third stage (from early2008 to the present time) is a period of passive activity of the local administrationbodies and limited possibilities to support small enterprise. Th e article also characterizesthese three stages.