Transformation of institutional environment of small and medium enterprises development

Abstract

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.