FUNCTIONAL REVIEW OF INSTITUTIONAL MECHANISM IN THE CONTEXT OF INTERRELATIONS OF MECHANISMS OF REGULATION OF BUSINESS ENTITIES DEVELOPMENT

Abstract

Urgency of the research. Functional review of the institutional mechanism of state regulation of the development of business entities (IMSRDBE) is actualized due to the necessity to improve institutional mechanism. Target setting. Scientific interest is the functional examination of IMSRDBE in the context of interaction with business, economic, market and state regulation mechanisms. Actual scientific researches and issues analysis. Methodological provisions of functional examination of IMSRDBE at different times were developed by the foreign scientists such as: O. Williamson, T. Eggertson, S. Izmalkov, A. Kulman, D. Nort, as well as the local ones – V. Geets, V. Dementiev, M. Latinin, S. Nikolenko, A. Tkach and others. Uninvestigated parts of general matters defining. The unsolved problem is the institutional mechanism functional connectivity with the business, market, economic, and state mechanisms, because they can regulate the development of business entities and the simultaneous state-regulatory impact based on the exclusive right of the state to the formation of regulatory legislation acts and the application of enforcement of their implementation. The research objective. The objectives of the article are definition of functional links of the institutional mechanism with business, economic, market and state mechanisms regarding the improvement of IMSRDBE. The statement of basic materials. The author does the functional examination of the institutional mechanism as recourse that allows to increase the efficiency of state authorities’ activities, the effectiveness of their impact on the achievement of program indicators of the strategies of the business entities development, saving resources and institutionalization of public administration. Conclusions. Complementarity due to the general functions and compensation due to the specific functions of the institutional mechanism creates the communicative holism of mechanisms aimed at reducing the uncertainty of the institutional environment, predictability of development of the business entities and effective using of their potential.