INFRASTRUCTURE SUPPORT FOR THE DEVELOPMENT OF SMALL AGRICULTURAL ENTERPRISES BASED ON AN INSTITUTIONAL APPROACH
Abstract
The article deals with the issues of infrastructure support for the development of small agricultural enterprises on the basis of an institutional approach. In the course of the study, it is found that in order to stimulate the entrepreneurial activity of small businesses, it is necessary to use special measures and tools for infrastructure support of small businesses, which will reduce the high risks of entrepreneurial activity in the modern business environment. It is established that institutions form the institutional environment (market, social, production, financial, etc.), which determines the rules of behavior in the business environment. With the help of the functions performed by institutions through the organizational and economic mechanism, the state of small business is influenced. The optimal use of resources and the performance of small businesses largely depend on resource markets. Of great importance are also the markets where small businesses can sell their goods or services. The proposed model of infrastructure support for the development of small business provides an opportunity to study the specifics of the impact of institutions on small businesses through the functions they perform through the methods and tools of the organizational and economic mechanism. These institutions can be formalized (legislation, tax rules, registration and licensing rules) and informal (social norms, cultural values, customs). Based on the genesis of the development of institutional relations, it is established that institutional influence can be positive or negative. The conducted research makes it possible to understand how institutional factors affect the development of small business, to identify barriers and constraints faced by small businesses. These may be related to bureaucratic procedures, access to finance, legal protection, or other institutional factors. Understanding these problems helps to develop measures to overcome them and create a more favorable environment for entrepreneurship. Institutional impact studies also help to understand which institutional factors contribute to job creation, improved living standards, community development, and the reduction of social inequality. This helps to identify best practices, successful strategies and policies that can be applied in other contexts.
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