the aim of the proposed scientific research is to evaluate SME managers’ readiness to practical application of different management theories to SME (small and micro enterprises) in the Latvia. Authors analyzes and show importance of the management functions in business and on the basis of different field researches and their results evaluates possibility to apply of management functions in small companies. The authors conclude that SME managers are looking for ready-made tools in business development and not ready to demand special business management approaches, which are tailor-made for specific/individual business needs and a company development. The management of SME faces many factors and issues what affects success of a small business. Among them are success factors, modern business models, e-environment, managerial skills, knowledge, individual competences, entrepreneurial mindset etc. For successful management of a small company manager (owner) should choose his own approach in diversify of many modern business theories and practices.