摘要:Small and medium-sized businesses have great potential, which is revealed in the conditions of a developing economy. The article examines the formation of medium-sized businesses in the Southern region, as well as the prospects for its development in the current economic environment. The article considers the branch structure of entrepreneurship. The problems of the peculiarities of the formation of small and medium-sized enterprises (SMEs), the achievement of competitiveness in the market are along with the actual scientific research of the modern development of Russian regions. Regional entrepreneurship is an important component of any region. Regional entrepreneurship is influenced by various factors and spatial conditions. The analysis of the current state and future development of business in the southern region is carried out. Attention is paid to the regulatory framework, lending, property and other issues of small and medium-sized businesses in the southern region. The share of SMEs in the country's gross domestic product has declined due to the crisis and measures to combat the pandemic. High investment risks and a low level of trust limit the opportunities for business development. The ways of improving the working conditions of entrepreneurs, the legislative framework and other related factors are proposed.