The economic and social effect is the main goal of state support for the small and medium-sized enterprise sector (hereinafter referred to as SMEs). However, the government's long-term efforts in the field of SMEs have not significantly affected the growth of the share of SMEs in the Russian economy. The main performance indicators of the SME sector have remained virtually unchanged for several years. Undoubtedly, the state policy in the sphere of small and medium-sized enterprises is developing and improving: institutions for the development and support of small and medium-sized enterprises are being created, new tools and support mechanisms are being developed, and the interest and involvement of regions in its implementation is increasing. However, this is clearly not enough. The main conductor of the state policy in the sphere of small and medium-sized enterprises in the territory of the subjects of the Russian Federation are regional public authorities. Priorities and tools for the development of small and medium-sized enterprises, their consistency and interconnection at all levels of government are considered in detail. The problems of the existing forms and mechanisms of interaction between the levels of government in matters of small business support, the degree of participation in the implementation of state and regional policy in this area of regional and municipal authorities are revealed. The current system of distribution of powers between the authorities of all levels on the development and support of small and medium-sized enterprises is analyzed. In the course of this analysis, it was revealed that the current mechanism of interaction of authorities in the development of SMEs is not effectively organized. Recommendations are given.