INSTITUTIONAL ASPECTS OF ENTERPRISES` DEVELOPMENT

The development of the enterprise means irreversible, purposeful and regular qualitative and quantitative changes in the economic system of the enterprise as both in a positive and negative way, influenced by factors of internal and external environment. The economic mechanism of the enterprise development is the formation and determination of economic, organizational, legal and other conditions of economic potential and increasing of its efficiency, i.e. determining its institutional support. The theoretical advantages of institutionalism which are based on the recognition of institutions' impact in forming of economic behavior and achieving economic efficiency are considered to be an essential source of scientific knowledge. Examining different methods of classification of institutions by different authors, some generalizations were made, dividing them into three groups: institutions by level of formality; institutions by fields (sectors) of activity; institutions at different levels of the hierarchy. Institutes by level of formality are divided into formal, informal and mixed. Formal institutions have a legal form and constitute the whole legal basis of the economy, creates economic behavior. Informal institutions mean sustainable habits, traditions, customs, culture organization in general. Institutions by fields (sectors) of activity are divided into economic, political, legal and social. Economic institutions include the rules that determine the processes of production, distribution, exchange and consumption of manufactured goods and services. Political institutions determine the type of political and electoral system, political stability measures, the ratio between the opposition and the government etc. Legal institutions determine the lawfulness, the type of legal system, property relations. Social institutions face health care and education issues, social protection measures, affect the gender balance and regulate the whole relationships between economic entities. The institutions at different levels of the hierarchy. There are four levels of them: institutions related to the social structure; institutions that define the rules: laws, property rights; institutions that belong to the government; institutions of regulating mechanism.