This article describes the conditions, resources, and prerequisites necessary for the efficient functioning of small businesses. Based on the theoretical propositions and practical results of productive forces distribution, the authors identify groups of factors of spatial organization of small businesses: national and supranational level, regional level, location, and the entrepreneur. A sequential analysis of the main factors of the small business deployment showed that taking into account all the factors contributes to the efficient functioning of small firms and better spatial organization of the national and regional economies. The authors define the concept of “location” necessary of the organization of a small enterprise and emphasize the psychological aspect of the object under consideration, namely, the moral and ethical constraints and moral values of entrepreneurs.