Development of small and medium business in post-Soviet Russia is regarded by the author as an important factor of market and, more generally, democratic transformations. Analysis of the tendencies outlined in our country, however, brings him to the conclusion that under the Russian conditions this process may have dual consequences: small business will either definitively become the nutrient medium of corruption and crime, or prove to be strong stimulation of the formation of civil society. With reference to the state administrative structures’ and small business’ interaction experience accumulated in Novgorodskaya region, V.V.Kondrachuk argues that for the second of the two noted prospective variants to come true, attentive and considerate attitude is required towards small business on the part of the state. According to his conclusion, time is not yet ripe for Russia to follow advice of liberal theoreticians who call on the state to make way for individuals and communities striving to build social order for themselves.