Theoretical Aspects of Formation Organizational and Institutional Support of Enterprise Functioning

Abstract

The article defines the essence of entrepreneurship and reveals the views of domestic scientists on this term. The characteristic features and functions of entrepreneurship are given, the subjects that are related to entrepreneurial activity are indicated and the categories of citizens who are not allowed to engage in entrepreneurial activity. The author reflects the types of business entities, which are divided into micro-enterprises, small, medium and large depending on the size, average number of employees for the reporting period (calendar year) and annual income from any activity of the enterprise. The dynamics of the number of operating enterprises in Ukraine, including agriculture, forestry and fisheries during 2016-2020, is analyzed, the reasons leading to the decrease in the number of enterprises and their competitiveness are given. The presented work reflects the main components of organizational and institutional support of entrepreneurship, which consist of two important parts - organizational and institutional. The importance of human resources is noted, because today in Ukraine there is an increasing question of improving its efficiency in enterprises. Wages are one of the ways to motivate staff, through which the company is able to retain creative and promising employees. The article highlights the need to provide enterprises with technical means and technologies, the formation of equity and borrowed capital, the use of the latest developments in science and technology. It is equally important to provide the company with reliable and truthful information about the domestic and global markets.