In the context of economic development, the importance of small businesses as a factor of competitiveness of the regional economy is growing. The paper provides a rating assessment of the regions of Ukraine in the favourability of their socio-economic development for the functioning of small businesses. The issue of providing a rating assessment to the regions of Ukraine in terms of favourable regions for the functioning of small businesses is relevant and necessary for in-depth study. The purpose of the paper is to calculate the favourability of regions for the functioning of small businesses and provide a rating assessment for all regions of Ukraine. Calculation of the indicator for assessing the level of favourability of the country’s regions in ensuring the effective functioning of small businesses is carried out based on summing up the rank values of each indicator studied, which affects the functioning and development of small businesses in the region. Due to these indicators, it is possible to provide a rating assessment of the favourability of the regions of Ukraine in the functioning of small businesses. After the calculations of 2018, the regions were divided into three structural economic blocks: those with great opportunities, sufficient, and underdeveloped regions. The first block includes 9 regions and the city of Kyiv, the second – 10 regions, and the third economic block – 5 regions. According to these indicators, it can be concluded that the most favourable regions for the functioning of small businesses are: the city of Kyiv, Kyiv, Kharkiv, Odesa, and Lviv regions. Transcarpathian region entered the second economic block with further prospects for socio-economic development. The most problematic regions are the Luhansk and Donetsk regions, which is caused by the military operations that began in this territory in 2014 as a result of the deepening political crisis that is taking place on the territory of Ukraine. The results presented in this study show a real picture of the socio-economic development of the regions, which will help in the future in finding ways for the possible development of all economic and social components of the regions.