Owing to its multifunctionality diversified small business realizes in the region not only production functions, but also promotes realization of such public benefits as: ensuring food security; saturation of the regional and local markets by goods and services; more complete use of local resources; ensuring all-the-year-round employment of local population; growth of the income; preservation of a way of life, cultural heritage and originality.

Key words: diversified small business, rural areas, efficiency, state support, development directions.