The article contains comprehensive analysis of entrepreneurship and state regulation of entrepreneurial activity in Azerbaijan and extensively studied the content of entrepreneurial activity, its important role in the market economy, various forms of this activity and its specific features, the need for state regulation of business activity, implementation mechanisms of that regulation. Moreover, various graphs and charts have been used those portray the indicators on the employment rate, distribution of small entrepreneurship subjects by kinds of economic activity, share of small entrepreneurship subjects in the economy, SWOT analyses of SME in Azerbaijan, number of small entrepreneurship subjects by regions of the country, and the main streams of state support for SMEs.

Keywords : Small Entrepreneurship Subjects, Individual Entrepreneurs, State Support for SMEs JEL Codes: L29, L53.