THEORETICAL ASPECTS OF INSTITUTIONAL SUPPORT FOR THE DEVELOPMENT OF AGRICULTURAL ENTERPRISES

Abstract

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 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. It is proved that the main objective of institutional transformations in the agro-industrial sector of the economy is to increase the efficiency of agricultural production. Changes in property relations and further transformation of economic relations, economic mechanism and social structure of the agricultural sector of the economy should provide conditions for a more dynamic development of the agro-industrial complex as a whole. Realization of this goal will lead to the formation of developed market infrastructure, competitiveness of economic entities, support of the profitability of its participants in the equivalent exchange between agriculture and related industries.