Territorial Mechanisms of Innovative Development of Small and Medium-Sized Business Sector: A Value-Oriented Approach

Background: The article presents the results of the analysis and systematization of publications on the issue of the formation of territorial mechanisms of innovative development of small and medium-sized business. Methods: A specified methodology has been developed, based on a system-evolutionary paradigm, supplemented with ideas of value-oriented approach that includes redefining the communication ethics and economics. Under this approach, various forms of economic processes folding in concrete historical conditions of the region’s development are the institutional shell of dominant cultural value system, expressing the power-institutional, organizational-institutional, technical-operational and economic-temporal ways of its realization. Findings: In accordance with the proposed in the article approach to the analysis of the territorial context of the development of innovative processes in the sector of small and medium-sized business, territorial peculiarities of formation of cultural value variables and legitimization of norms and rules of business have been revealed; the factors that determine the boundary conditions for the successful development of small-sized companies in the region have been showed; the role of cultural value concepts and ideas in forming the strategy of territorial changes in territorial mechanisms of innovative development of small and medium-sized businesses have been justified; representations stated in the article form the basis of the author’s vision of the process of individualization of strategic changes implementation and territorial development formation of the sector of small-sized forms of business. Improvements: The provisions put forward in this article can be used as a theoretical model, which allows considering specific hypotheses about the success of the formation of territorial mechanisms of innovative development of the smallsized business and testing it empirically.