The trend of scientific research in recent years is the actualization of the need to transform institutions in Uzbekistan, but despite this, there is still no common understanding of how, when and in which direction institutional innovations should be introduced. The problem is complicated by the fact that there are practically no scientific works on the quantitative assessment of the quality of the institutional environment of small industrial enterprises. The domestic institutional school has not yet developed methodological tools adequate to the specifics of national small industrial enterprises (SMEs), which could be used in the processes of research, evaluation and implementation of institutional transformations in this sector of industry. The purpose of the study is to analyze modern theories and methodology of research of the institutional environment of small industrial enterprises. Methodology of the work: the study was carried out using the methods of theoretical analysis, formalization, classification, statistical analysis, as well as synthesis, deduction and induction. Conclusion: as a result of the research, it is concluded that both in Uzbekistan and abroad there is a shortage of concepts that have been worked out not only at the theoretical level, but also at the empirical level, i.e. brought to practical application in relation to a specific "problem field" of the institutional environment.