The small-scale business is an important element of the market economy, which influences rates of economic growth, structure and quality of the gross domestic product. Nevertheless poor agricultural commodity prices, rising input costs combined with low productivity and out-of-day agricultural machinery erode small farming enterprises and result in social and economic problems. On the other hand small farming enterprises can play a significant role in the developing and designing new policy modes for rural areas. In this situation rural tourism can provide new ways to diversify farm products and supplement agricultural incomes for existing agro industrial and farming enterprise. It can also provide new jobs for those not involved in the agricultural production directly. The algorithm for development of small business in rural tourism for the Kirov region aims at stimulating the development of small business in rural tourism combined with proving necessary conditions for recreation and tourism of the urban population of the Kirov region and neighbouring regions. It includes working out of the blueprint for development of rural tourism in the Kirov region, identification of tourist potential of municipal districts, working out of target municipal programs.