ENTERPRISE OF UKRAINE IN CONDITIONS OF INSTITUTIONAL CHANGES

Abstract

           The paper analyzes the trends of entrepreneurship in Ukraine during 2010-2020. Qualitative indicators are given to calculate the level of entrepreneurship development, in particular the value of gross domestic product, dynamics of change and indices of physical volume of gross domestic product, value of gross domestic product per capita, dynamics of change and indices of physical volume of gross domestic product per capita people. It is concluded that the current state and trends of entrepreneurship in Ukraine do not meet the potential of the state, do not ensure the proper level of well-being of society as a whole and each member of society. One of the reasons for this situation is the constant falling of domestic entrepreneurs into the so-called institutional traps. It is concluded that the institutional transformations that took place in Ukraine during all the years of independence failed to take into account the complexity of Ukraine's transition to a market path of development and therefore led to a large number of institutional traps that hinder entrepreneurship. In particular, such institutional traps as the dependence of Ukraine's economic development on the country's previous development trajectory have been identified and carefully analyzed; imperfection of the created legal system; the absence in many cases of an "effective" owner who could competently conduct economic activities, bring the state significant income in terms of taxes, etc .; the presence in Ukraine of a huge transactional sector of the economy; the country's legislature and executive ignored much of the advice of institutionalists, who believed that economic reforms could not weaken social role of the state, it is impossible to carry out incompatible measures at the same time, and it is possible to copy foreign experience of carrying out reforms only when these countries are at approximately the same level of development with our country. It is concluded that in order to prevent domestic entrepreneurship from falling into institutional traps, the state needs to plan from the very beginning the gradual dismantling of an outdated institution (system of rules of conduct or so-called "game" rules) and its replacement with a new one that would meet new, market business conditions.