INSTITUTIONAL CAPACITY OF CONSTRUCTION SMES IN ENSURING ECONOMIC SECURITY IN THE CONTEXT OF POST-WAR RECOVERY

Abstract

The article explores the institutional factors that determine the economic security of micro, small, and medium-sized enterprises (MSMEs) in Ukraine's construction sector under the conditions of armed conflict and post-war recovery. The purpose of the study is to identify the typology of the institutional environment, assess the adaptive capacity of enterprises in crisis conditions, and define strategic directions for state support policies. The research integrates concepts from institutional economics, enterprise economic security, and strategic regional development approaches. The analysis includes a review of the legal framework, support programs, statistical data on MSMEs’ performance in 2022–2024, and the findings of international studies. The author’s contribution includes the development of a typology of institutional environments for MSMEs, which encompasses three categories: enabling, potentially inclusive, and institutionally constrained. It is substantiated that the main challenges remain the fragmentation of the regulatory framework, lack of coordination between levels of governance, uneven access to support programs, and limited MSME involvement in local planning processes. The study proposes a methodology for evaluating economic resilience based on financial stability indicators, participation in public projects, workforce capacity, and business mobility. The scientific novelty lies in generalizing the factors of institutional interaction that enhance MSME resilience to external shocks, and identifying new capacity indicators relevant to the post-war transformation context. The practical value of the results lies in the formulation of policy recommendations aimed at developing horizontal business networks, increasing transparency of support mechanisms, and building partnerships between municipalities and small business representatives. The study concludes that institutional capacity should be regarded not as an auxiliary, but as a key factor in ensuring the economic security of construction MSMEs in the reconstruction process. An effective combination of regulatory stability, transparent procedures, and strategic interaction between government, business, and civil society can ensure inclusive and resilient local economic recovery.