THE INFLUENCE OF THE INSTITUTIONAL ENVIRONMENT ON THE RESOURCE PROVISION AND ECONOMIC SECURITY OF INDUSTRIAL ENTERPRISES

Abstract

The article analyzes the institutional environment as one of the key factors influencing the activities of domestic enterprises in the conditions of modern challenges and threats. In particular, the Legatum Prosperity Index™, which is used to assess institutional conditions in different countries, was studied. This index reflects a comprehensive assessment of various aspects that determine the country's prosperity, including institutional factors, it consists of 12 indicators and is supported by 67 elements, which are grouped into three areas. The country's prosperity index allows for a comprehensive assessment of economic, social and political aspects affecting business development and the country's investment attractiveness. Changes in the position of Ukraine in the prosperity rating for the period 2014–2023 were analyzed by individual components of the index, namely security and protection, personal freedom, governance, social capital, investment environment, doing business, infrastructure and market access, economic development, living conditions , health care, education, ecology, which have a significant impact on the innovative and strategic activities of enterprises. During this period, Ukraine has experienced significant fluctuations in indicators of security, economic stability, social capital and governance, which affects the overall climate for doing business. Negative trends such as declining security and governance instability have been found to reduce the country's investment attractiveness and increase risks for businesses, especially in the industrial sector. Based on the analysis, the main threats that arise due to the imperfection of the institutional environment are identified, which, in turn, increases the risks for the functioning of enterprises. Directions for improving institutional conditions for strengthening economic security and stable business development in Ukraine are proposed. The research results presented in the article can be useful for enterprises seeking to minimize risks and adapt their strategies to the challenges of the external environment.