Institutional determiners of rural entrepreneurship development

The aim of the article. The paper presents the research results that specify current institutional determinants in rural entrepreneurship development. The establishment of rural entrepreneurship is a key factor in rural economy revival, as well as, Ukrainian identity in particular. To reduce the impact of institutional barriers in business development, mandatory would be to consider the existing legal, economic, political, social canons, requirements and regulations. On the one hand, the components hereof will increase business efficiency, and on the other hand they will contribute to opportunistic behavior of economic agents when signing contracts or executing them. Therefore, coordination of external (formal) institutions and internal (informal) institutional elements will improve the conditions for entrepreneurship development and rise business economic efficiency in particular. The article is aimed at determining institutional impact on the development of rural entrepreneurship and justification of areas in order to overcome barriers of institutional character to form strategic goals of strengthening economic business performance.The results of the analysis. The paper highlights basic premise for creating institutional framework of rural entrepreneurship. It is proposed to consider institutional entrepreneurship environment in rural areas as a specific infrastructure designed to facilitate efficient operations, rapid product turnover, company positive image formation and innovation implementation in economic activity. The main problems of institutional environment in assessing rural entrepreneurship are associated with a limited amount of statistic information. The existing methods do not allow determining of entrepreneurship institutional determinants in rural areas or on that basis to justify innovative directions for each structure further operation. Therefore, the author proposes to use a method of constructing multicorrelation-regression model and poll results. Analyzing the parameters of correlation-regression model it was determined that business economic situation 80,3% depends on these institutional determinants and 19,7% on other undetermined factors. When planning and implementing innovative technologies, rural entrepreneurs must also take into account the effect of such factors as legal government innovation, the amount of transaction costs, the rules of the game in the market, as well as, the formation of company financial and credit supply. The author found the major reserves for business improvement that mark the reduction of negative impact of government institutions.Conclusions and directions of further researches. Thus, the implementation of highlighted methodological approaches to estimating the impact of institutional determinants of rural entrepreneurship development allowed conducting a comprehensive analysis of the major problems in operation. The research results prove that the most favorable determinants of economic impact on state businesses should be considered the transaction cost reduction, proper legislation and support of rural entrepreneurs from the state. The prospects for future research should be oriented towards finding a reasonable institutional mechanism that will improve the efficiency of business activities in rural areas. The development of the innovation management methods of rural entrepreneurship structures will balance the effect of institutional traps.