Abstract: This article is dedicated to evolution of the concept of “development” and its examination in the Russian Federation. Having analyzed the works of the foreign and Russian researchers, the author formulates the two conceptual approaches towards development management as business activity: “entrepreneurial” and “administrative”. This allowed determining the priorities of each of the approaches, which would become the foundation for the efficiency evaluation system of development management. The author also systematizes the set of factors that maintain sustainable growth of business structures in the sphere of development. The conducted analysis and further synthesis of methodological groundwork in the area of development management allowed revealing the factors that ensure the efficient implementation of development projects, and this, sustainable growth of business structures in the sphere under consideration. The scientific novelty consist in formulation and substantiation of the two conceptual approaches towards development management capable of increasing the efficiency of the government goal setting in the sphere. Qualitative determination of the long-term priorities and indicators of development management, as well as enabling sustainable growth of business structures in the indicated sphere, must become an intrinsic part of realization of the modern urban development strategy of the Russian Federation.