The article is noted the existing problem of institutional reform of the nature of the economic system. This is primarily: 1) extremely slow adaptation of market institutions and institutions to new conditions; 2) unsatisfactory modification of the old and the formation of market institutions; 3) in the absence of a perfect institutional environment, inconsistency of market institutions and institutions with traditional ones are observed; 4) at the state level, there is no comprehensive vision of the conceptual foundations of institutional provision of economic development and market relations taking into account national peculiarities.

The purpose of the research is formulated – to improve the theoretical foundations and scientific substantiation of approaches to increase the efficiency of economic activity of all business entities in Ukraine on the basis of the system of its institutional support. The author systematizes the peculiarities of the formation of the institutional environment in Ukraine and discloses its influence on the efficiency of economic growth and the change of the basic "rules of conduct of the game" in market conditions. The author notes that economic institutions that stimulate economic growth appear under the following circumstances: 1) when political institutions give power to groups that are interested in a broadly-developed system of information rights ownership; 2) when they provide for effective limitations for the actions of the authorities of those who are in need; 3) when there are no opportunities for remove significant rent from being in power.

The conceptual and theoretical bases of transition to a result-oriented economy in the context of the formation of a new institutional environment are proposed. Its improvement is required by circumstances that, in the context of the sustainability of the institutional environment, can be considered as an institutional crisis in Ukraine. This increases the direct risks of achieving the desired result for each participant and calls into question the adoption of any new rules in the long run.

The necessity of forming a perfect institutional environment for attracting private capital for realization of important state economic programs is substantiated in the article. The key tasks are to ensure the sustainability of the institutional environment, which formed from the adaptability of established institutions. That is, it is a "precise superstructure" in accordance with changing economic realities. In the absence of an adequate institutional foundation, economic growth will be short-term conjunctural character.

Attempts to change the institutional framework of economic relations (a number of fundamental norms) led to a change in the structure of incentives for economic agents are proved in the article. This means that in the formation of any reform in order to expand their understanding of market participants should be aware of the strategic effects of a particular institution functioning on the environment, increase knowledge about its potential.

On the basis of the conducted analysis, it is concluded that the institutional environment of the economic system that has developed in the process of forming a market economy in Ukraine has a specific composition. In general, the level of indicators characterizing the allocated norms is lower than the average indicators of the group of countries to which the national economy belongs. This is explained, first of all, by the fact that the rules, rules and institutions in the country in the vast majority of them were formed depending on the institution of property, the institution of bureaucracy, and mainly on the basis of informal norms, which developed in the times of the USSR, whose economy was dual in nature – was at the same time, planned and market, legal and illegal. . From this it was concluded that the institutional environment of the economic system of Ukraine does not meet the requirements of effective functioning and development, since it is based on the norms of personified trust, limited physical and economic freedom, has a high level of rent-oriented behavior that justifies personal enrichment at the expense of others, as well supports legal nihilism.

Key words: institutional environment, business, economic growth, market institutions, economic system, formal and informal institutes, efficiency.