THEORETICAL ASPECTS OF INSTITUTIONAL SUPPORT FOR THE DEVELOPMENT OF AGRICULTURAL ENTERPRISES

Natalya Sirenko, Inna Baryshevska, Olha Melnik
2021 Management Theory and Studies for Rural Business and Infrastructure Development  
The subject of the study is a set of theoretical and organizational principles of institutional support for the development of agricultural enterprises. Methodology. The methodological basis of the study consists of general methods of scientific knowledge of economic phenomena and processes. The realization of work tasks requires the following methods: theoretical method of generalization -while the study of scientific articles, laws and regulations; abstract logical method -generalization of
more » ... generalization of theoretical and methodological provisions, as well as the definition of the objective of the study; method of system approach -definition of problems of institutional support for the development of agricultural enterprises. The objective of the study is to outline the institutional aspects of enterprise development, their classification, and the study of the importance of institutional transformations in the agricultural sector. Results. It was studied that the development of an enterprise is a rather complex concept, which is proposed to be understood as a long-term set of processes of quantitative and qualitative changes in the enterprise, which lead to improvement of its state by increasing the enterprise's potential, adapting to the external environment and internal integration, which helps to increase the company's ability to counteract negative influences of the environment and its viability. The development of the agricultural sector directly depends on the level of its institutional support, which is characterized by the number and efficiency of the institutions involved. According to the definition of institutions as the basic components of the institutional environment, it is analyzed that they are the factors of activating or inhibiting development, forming an effective or ineffective environment for the functioning of agents of the agricultural sector. It is determined that institutions act as a synergistic combination of opportunities and constraints in the development of the agricultural sector, structuring its relations, combining the system of factors, organizational components, processes and results of their actions; they represent a complex dialectical category.
doi:10.15544/mts.2020.46 fatcat:ql53ga3oy5a2domk5s36pxbnvy