Background. There is an imbalance in the sectoral structure of small business in Russia. Sales outlets prevails over other firms of services sectors. Results. Structural changes and conditions of the customer demand in the services sector are examined in this article. Effects of the world depression are analyzed. Small business development models of the consumers' market and knowledge-intensive business sector are described. Conclusion. High-tech, science-based services industries are gaining a new momentum for development. The major determinants of Russian small business development at the present stage are: • the rapid expansion of large business (retail network, hotel network etc.); • the intensification of intra-sectoral specialization; • the virtual enterprise formation in cyber-space; • high standard of small business owner ’s self-organization.