Activization of enterepreneurship in terms of changing institutional conditions: the agricultural priority

Abstract

The relevance of the stated topic is determined by the necessity to provide activization of entrepreneurship in terms of changing institutional conditions. In the article the priority to develop entrepreneurship in the agricultural sector is determined because of the crucial role of the sector for fulfilling economic and social goals. The authors describe the relationship among the main economic entities – households, enterprises and government using the model of circulation of goods and income in the economy that is used in the macroeconomic analysis. The peculiarity of the agricultural sector is that households can frequently act as both households and entrepreneurs fulfilling both functions simultaneously and contributing to the overall output whereas other forms of agricultural enterprises also exist. To provide activization of entrepreneurship favorable institutional conditions should be created. The authors emphasize that before the war the institutional environment had not been favorable enough that was proved by the analysis of indices of economic development presented by international organizations. Nowadays there are positive shifts in direction of improvement of institutional environment in particular this is fostered EU integration and rising investment attractiveness of Ukraine. In general, it is preferable to consider using the experience of developed countries to create the favorable institutional environment for entrepreneurship.