INSTITUTIONAL SUPPORT FOR INNOVATIVE DEVELOPMENT OF SMALL BUSINESS ENTITIES

This study involves studying the institutional essence of small forms of economic activity, as well as identifying key factors influencing their innovative development. The basis of the study is a set of scientific approaches to understanding the institutional essence of economic development in modern conditions. The fundamental research methods are the dialectical approach, comparative analysis and observation, generalization, and the methods of correlation and regression analysis are also used to identify the influence of institutional factors on the level of innovative development of small business entities. In the conditions of the post-industrial economy, there is a constant interaction of small businesses with state and public institutions. The specificity of the market mechanism of interaction between the state, business and the population determines the presence of various forms and relations of such interaction. In the course of the study, significant factors were identified that determine the nature of institutional support for the innovative development of small business entities in modern realities. These include, in particular, the digitalization of the economy, the degree of corruption, the level of use of human capital, etc. The dependence of the innovative development of small business entities on the level of institutional development of the region was proven. The research results are the basis for further development of a strategy for the regional development of small businesses.