THE ROLE OF SOCIAL INSTITUTIONS IN THE ACTIVITY OF ENTREPRENEURS IN THE CONSTRUCTION SECTOR

This paper reports on a study of the methodological principles and roles of social institutions in controlling business activities. The level of their administrative interference in business activities is analyzed, particularly regarding administrative barriers restricting business in the construction sector. The study concludes that social institutions, on the one hand, reduce economic risks of entrepreneurship and encourage the fulfilling of formal norms. However, on the other hand, they perform a restrictive function, increasing entrepreneurs' transactional costs. The paper provides examples of informal norms that restrict entrepreneurial activity in the construction field, with a conclusion about non-systemic business support measures.