The book concentrates on the problems of SMEs in the Russian market by analyzing two different groups: a) Azeri companies, which are closer to the Russian mentality, more accustomed to the local business environment, and use less sophisticated technologies. b) German companies, which are not so close to the Russian society, have difficulty with adaptation, but have better technology, business strategies and offer higher quality products. We focus on these two groups of enterprises in order to get the full understanding of the business environment and reveal all the problems, which a company can face in the Russian market. To reach the aim interviews were conducted with the German and Azerbaijani entrepreneurs, representatives of embassies, Russian entrepreneurs, independent lawyers, and professors. At the same time analysis is supported by statistical indicators, market survey, business environment books, and recent articles about SMEs, the political and social situation in Russia.