The article is based on the results of the survey of the heads of municipalities of the Orel region; it is dedicated to the study of conditions for the promotion of small business sector and reducing admi-nistrative barriers to its development. The purpose of writing this article is to pay attention of the representatives of legislative and executive authorities and the scientific community to the problems preven-ting the development of entrepreneurial activity in the municipalities. The research methodology includes conducting expert survey, comparative analysis and logical interpretation of the results set out in the form of conclusions on the presented issue. The results of the study are generalizations of sociological survey and authors’ conclusions that the most popular ways of supporting entrepreneurs of the municipality are financial support measures and measures for the development of business infrastructure. The main provisions reflecting the results of the study are the following: the conclusions of inefficient interaction between small businesses and local governments, lack of social orientation of this interaction and the need to strengthen it; the lack of effective dialogue between local authorities and the public on issues of interaction with small businesses; the need for state regulation of equal partnerships in financing and lending, administrative regulation and taxation in order to create conditions for development of small businesses.