Transformation of institutional environment of small and medium enterprises development


Theoretical and historical perspectives study the logic and dynamics of institutional changes in the deregulation of small and medium-sized enterprises (SME). The paper specifically considers the conditionally and nature of institutional changes in socio-economic systems in the context of leading trends and challenges of our time. These processes are designed for SME development policy. The methods of scientific cognition, analysis and synthesis, logical generalization, deductive technique, complex evaluation, graphics, and others are used. Based on the definition of relationships between the basic categories of institutionalism under the influence of economic changes and the clarification of the functional purpose of the institutional environment to create a favourable “microclimate”, appropriate conditions for activity and development, the process of the institutional environment of SME development formation during the 30 years in Ukraine is generalized. The process mentioned above is divided into three periods: the 1st – since 1991, the intensification of institutional changes in SME development policy when the State Committee of Ukraine for Regulatory Policy and Entrepreneurship Development and the Ukrainian Entrepreneurship Support Fund were established; the 2nd – since 1998, when the SME support system was formed and developed directly during 2000–2011; and the 3rd period – since 2014, when there was stagnation and decline of the constructed SMEs development support system, but there were some isolated, unfortunately, chaotic institutional initiatives during 2018–2020. The scientific novelty lies in the reflection of economic changes in the institutional environment of SME development in Ukraine under the influence of the most fundamental structural socio-economic transformations and global factors: globalization, internationalization (1991–1997), innovative development, socialization, intellectualization of the economy (1998–2013), sustainable development, digitalization (2014–2021). The presented scheme of influence allowed generalizing the tendencies under the influence of which the institutional environment of SME development formed and gave the chance of predicting at the expense of what components and from what sources institutional changes can be expected. Practical significance: the recommendations can be used in forming and implementing of the national and regional targeted programs for SME support and development in Ukraine.

  1. Coase, R. (2007). The Firm, the Market and the Law. Moscow: Novoie izdatelstvo [in Russian]

  2. North, D.C. (2010). Understanding the process of economic change. Moscow: Izdatielskii dom Vysshei shkoly ekonomiky [in Russian]

  3. Williamson, O.E. (1996). The Economic Institutions of Capitalism: Firms, Markets, Relational Contracting. Saint-Petersburg: Lenizdat, CEV Press [in Russian]

  4. Volchik, V.V. (2012). Institutional change: on the way to creating a common theory. Journal оf Institutional Studies, 4, 4, 4-6 [in Russian]

  5. Tang, S. (2011). A General Theory of Institutional Change. London, New York: Routledge.

  6. Liakhovets, O.O. (2015). Conceptual framework of national economy institutional environment analysis. Naukovi pratsi. Ekonomika, 265, 253, 16-21 [in Ukrainian]

  7. Moiseenko, O.M. (2015). Institutional changes as the basis of economic development of Ukraine. Naukovyi visnyk Khersonskoho derzhavnoho universytetu. Seriia: Ekonomichni nauky – Scientific Bulletin of Kherson State University. Series: Economic Sciences, 12, 2, 125-128 [in Ukrainian]

  8. Ridenko, M.V. (2018). Theoretical Basis Of Institutional Changes In The National Economy. Finansovyi prostir – Financial Space, 1 (29), 108-116 [in Ukrainian]

  9. Korneev, V.V. (2002). Institutional milestones of the market reforms. Ekon. Prognozuvannâ – Economics and forecasting, 3, 82-90 [in Ukrainian]

  10. Grytsenko, A.A. (Ed.). (2015). Institutional transformations of socio-economic system: monograph. Kyiv: Institute for Economics and Forecasting of NAS of Ukraine [in Ukrainian]

  11. Katyhrobova, O.V. (2013). Institutional changes as overcoming of the contradictions of innovative development. Investytsiyi: praktyka ta dosvid, 13, 32-35 [in Ukrainian]

  12. Maslov, A.O. (2010). Institutional structure and its evolution in the work of Douglass North. Formuvannia rynkovoi economiky, 80-91

  13. Volchik, V.V. (2011). Institutional and evolutional economy: teaching guide. Rostov-on-Don: YuFU [in Russian]

  14. Stephen, H. (2012). Innovation and change: ideas, networks and communities. Records Management and Knowledge Mobilisation, 115-141.

  15. Chang, Ha-Joon. (Ed.). (2007). Institutional Change and Economic Development. United Nations University Press.

  16. Grytsenko, A.A. (2006). Institutional architectonics: subject, main laws, methodology. Naukovi pratsi Donetskoho natsionalnoho tekhnichnoho universytetu. Seriia: Ekonomichna – Scientific papers of Donetsk National Technical University. Series: Economic, 103-1, 31-37 [in Russian]

  17. Siryi, Ye.V. (2012). Formation of small business in terms of indicators of state-institutional factors and subjective-value consequences: national experience. Aktualni problemy sotsiolohii, psykholohii, pedahohiky – Actual problems of sociology, psychology, pedagogy, 16, 21-33 [in Ukrainian]

  18. Kolisnichenko, I.M. (Ed.). (2015). Institutional Economics: teaching guide. Kharkiv: Simon Kuznets Kharkiv National University of Economics [in Ukrainian]

  19. Hrechko, A.V. (2013). A role of institucional environment is in development of national economy. Suhasni problemi economici i pidpriemniztvo, 11, 27-33 [in Ukrainian]

  20. Balakireva, O.M., Nour, A.M. (2008). Business development in Ukraine: institutional environment and public opinion. Ekon. prognozuvannâ – Economics and forecasting, 2, 7-23 [in Ukrainian]

  21. Yaremenko, O.L. (2015). Institutional reforms and the problem of indebtedness of the government institutions. Ekon. teor. – Economic theory, 4, 82-88 [in Ukrainian]

  22. Zheliak, M. (2013). Will the State support small business. Ekonomichna pravda. URL: [in Ukrainian]

  23. Botsora, L.O. (2015). Financial mechanism of small entrepreneurship development in Ukraine. Lviv [in Ukrainian]

  24. Berezhnytska, U.B. (2010). Effectiveness of budget programs of financial and loan support of small business. Visnyk Kyivskoho natsionalnoho torhovelno-ekonomichnoho universytetu – Herald of Kyiv National University of Trade and Economics, 1, 44-58 [in Ukrainian]

  25. Yaremenko, O. (2006). The mechanism of institutional change. Ekon. teor. – Economic theory, 1, 3-12 [in Ukrainian]

  26. Grytsenko, A.A. (Ed.). (2018). Institutional architectonics and trends of economic changes. Kharkov: Fort [in Russian]

Full text